Universal Credit and Council Tax Discounts: Why You Must Contact Your Local Authority

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Council Tax Is Not Automatically Discounted When You Move Over To Universal Credit

If you are disabled and claiming Universal Credit, you may assume that you are automatically entitled to a council tax discount. However, this is not the case. Unlike legacy benefits, Universal Credit does not automatically trigger a reduction in your council tax bill. To ensure you receive any discounts you are eligible for, you must contact your local authority (council) directly.

Who Is Eligible for a Council Tax Discount?

If you are disabled, you may be entitled to a reduction in your council tax bill under one of the following schemes:

• Council Tax Reduction (CTR) – Also known as Council Tax Support, this is a means-tested discount that local authorities offer based on your income and circumstances.
• Disabled Band Reduction Scheme – If your home has been adapted for disability-related needs (e.g., extra space for a wheelchair or an accessible bathroom), you may qualify for a reduction in your council tax band.
• Severe Mental Impairment (SMI) Exemption – If you (or someone you live with) have a condition classed as a severe mental impairment, you may be exempt from paying council tax entirely.

What Should You Do?

Since council tax discounts are administered by local councils and not the Department for Work and Pensions (DWP), you must apply separately. Here’s what you should do:

1. Check Your Council’s Website – Each council has its own rules for council tax reductions, so visit their website or call them directly to find out what support is available.
2. Provide Proof of Your Circumstances – You may need to supply evidence such as your Universal Credit award letter, proof of disability benefits (e.g., PIP or DLA), or a letter from your GP.
3. Apply as Soon as Possible – Discounts are not always backdated automatically, so apply as soon as you claim Universal Credit or if your circumstances change.

What If You Receive a Full Council Tax Bill Unexpectedly?

If you receive a council tax bill demanding the full amount when you believe you are entitled to a discount, take the following steps:

• Contact Your Local Council Immediately – Inform them of your disability status and request an application for a discount or exemption.
• Ask for a Hold on Payments – If you are disputing the bill, ask for a temporary hold on enforcement while your case is being reviewed.
• Request a Backdated Adjustment – If you were eligible but not receiving the discount, ask for a recalculation of your bill.
• Seek Advice – If you struggle to resolve the issue, contact Citizens Advice or a welfare rights organisation for further support.

Conclusion

Universal Credit does not automatically entitle disabled claimants to a council tax discount, so it is crucial to contact your local authority to ensure you are receiving the correct support. If you receive an unexpected bill, act quickly to challenge it and apply for the discounts you are entitled to. Taking proactive steps can prevent unnecessary financial hardship and ensure you are not overpaying for council tax.