Yes, Universal Credit can provide a council tax discount or exemption, depending on individual circumstances and local council policies.
So let us take a deeper look
Universal Credit is a benefits system in the UK that pays a monthly sum to eligible claimants. While it is mainly designed to help with living costs such as rent and food, it can also provide assistance with council tax. Depending on individual circumstances and local council policies, Universal Credit may offer a council tax discount or exemption to help reduce the financial burden on claimants.
According to the government’s official website, “you may be able to claim Council Tax Reduction (CTR) if you’re on a low income or claim benefits.” This means that Universal Credit claimants who meet the criteria for CTR may be able to receive a reduction in their council tax bill. The amount of the reduction will vary depending on factors such as income, the number of people in the household, and local council policies.
It’s worth noting that not all local councils in the UK offer the same level of assistance with council tax. Some councils may offer more generous discounts or exemptions, while others may only provide a minimal reduction. It’s important for Universal Credit claimants to check with their local council to see what kind of assistance they can receive.
In a quote from personal finance expert Martin Lewis: “Council tax benefit is one of the most underclaimed benefits out there. Many people who are entitled to it aren’t claiming. It’s not the easiest thing to maneuverer, but it’s worth the effort.”
Here are some interesting facts about council tax in the UK:
- Council tax is a form of local taxation that was introduced in 1993 to replace the unpopular poll tax.
- It is a tax on domestic property, with the amount charged based on the valuation band the property falls into.
- There are eight valuation bands, ranging from A (the lowest) to H (the highest).
- The money collected from council tax is used to help fund local services such as schools, rubbish collection, and road maintenance.
- Council tax rates are set by local councils, but they must be approved by the government.
- Council tax bills are usually sent out in April and can be paid in installments over the course of the year.
Table:
| Criteria | Amount of Reduction |
|---|---|
| Universal Credit claimants who are eligible for CTR | Varies depending on income, household size, and local council policies |
| Local council policies | Varies depending on the council |
| Valuation bands | Ranges from A (the lowest) to H (the highest) |
| Services funded by council tax | Schools, rubbish collection, road maintenance, etc. |
| Council tax bills | Usually sent out in April and can be paid in installments over the year |
Video answer to “Does Universal Credit give council tax discount?”
The video “Let’s Talk About Council Tax: Discounts, Exemptions, and Council Tax Support” discusses the importance of applying for council tax support, discounts, and exemptions to reduce one’s monthly council tax bill. Viewers are informed about council tax support, which is a benefit that can reduce the amount of council tax one has to pay based on income and circumstances. Various discounts and exemptions for council tax, such as the single person occupier discount, the disabled people relief option, and council tax exemption for those who are disregarded, are also discussed. The video stresses the importance of contacting the council or independent advice organizations to apply if eligible for council tax reduction or exemption.
There are alternative points of view
The income band system gives you a percentage reduction on your council tax bill, and it is based on your Universal Credit award, your earnings and some other types of income.
If you’re on a low income or claim benefits, such as universal credit, your household may qualify for a council tax reduction – which can be as much as 100%. It doesn’t matter if you own your own home or rent, or whether you’re employed or not.
If you are claiming Universal Credit for the first time, you should apply for a council tax reduction straight away. Many councils are unlikely to backdate the reduction for you. You do not need to wait until your claim for Universal Credit has been approved or paid out to apply for the discount.
There are a number of other discounts or exemptions which may be available to a person – such as if everyone living in a property are full-time students, or a person lives on their own. Someone who receives Universal Credit may be able to pay a reduced Council Tax bill.
Among the extra help which could be available is a discount on Council Tax. "You may be able to get help from your local authority with your Council Tax if you are on a low income or claim benefits, including Universal Credit," Government guidance on the matter states.
You don’t only have to be receiving Universal Credit to qualify for a council tax reduction. You could also get a discount if you are or live with a student, if you are severely mentally impaired, or if you are the only adult living in your home. Discounts range from 25% to 100%.
Example – A customer’s weekly income is their maximum Universal Credit award of £200 (including the housing element) and earned income (net) of £65. As their weekly income is £265 (£65 above their applicable amount – Band 4), they would receive 30% of their bill in Council Tax Support.
If you claim Universal Credit, you may be entitled to a council tax exemption or support to pay your bill if you’re suffering from a mental health illness. Can I get a Council Tax reduction with a mental health condition while claiming Universal Credit?
Surely you will be interested in this
Beside above, Who is exempt from paying council tax UK?
People who are disregarded include:
full-time students, student nurses, apprentices and youth training trainees. people caring for someone with a disability, who is not a partner, or child under 18. patients living in hospitals, care homes, certain hostels or night shelters. people who have a severe mental impairment.
Furthermore, What does Universal Credit cover?
Universal Credit is made up of a basic allowance plus different elements for things like housing costs, bringing up children, caring or sickness and disability. The amount you get in Universal Credit can go down or up, depending on what income you get from: working. a pension.
Do you pay council tax on Universal Credit Scotland? In reply to that: Universal Credit. Income Support, income-based Jobseeker’s Allowance, income-related Employment Support Allowance – you’ll get maximum Council Tax Reduction less any non-dependent deduction.
Additionally, Do you pay council tax on Universal Credit Wales? In reply to that: Apply for Council Tax Reduction
If you have claimed or are receiving Universal Credit, you can get help towards your Council Tax costs from the council. You cannot claim this within your Universal Credit claim – you must make a separate application with the Council.
Do you pay council tax if you’re on Universal Credit?
Response will be: [ANALYSIS] Do you pay council tax if you’re on Universal Credit? In short, yes, people who claim Universal Credit have to pay council tax. However, the rules are slightly different and claimants are likely to have to pay a reduced amount of the bill. A reduction on your bill will depend on your circumstances and where you live.
Can I claim a discount on my council tax? UNIVERSAL Credit claimants are being urged to claim a discount on their council tax "straight away" to cut down their outgoings. Low income households on certain benefits are entitled to money off – in some cases up to 100% – the tax to ease the financial burden.
In this regard, Do Universal Credit claimants qualify for a tax discount? However, it may be that Universal Credit claimants qualify for a discount on this tax bill. There are a number of other discounts or exemptions which may be available to a person – such as if everyone living in a property are full-time students, or a person lives on their own.
Regarding this, What are the benefits of Universal Credit?
As an answer to this: Generally speaking, if someone is on Universal Credit, they may be eligible for a maximum discount of 82.5 per cent on their council tax bills and will be required to pay 17.5 per cent of the total amount. This is still a major financial relief for those struggling to find or maintain a medium to a high-income job.
Do you pay council tax if you’re on Universal Credit?
As a response to this: [ANALYSIS] Do you pay council tax if you’re on Universal Credit? In short, yes, people who claim Universal Credit have to pay council tax. However, the rules are slightly different and claimants are likely to have to pay a reduced amount of the bill. A reduction on your bill will depend on your circumstances and where you live.
Consequently, Can I claim a discount on my council tax? As an answer to this: UNIVERSAL Credit claimants are being urged to claim a discount on their council tax "straight away" to cut down their outgoings. Low income households on certain benefits are entitled to money off – in some cases up to 100% – the tax to ease the financial burden.
In this way, What are the benefits of Universal Credit?
Generally speaking, if someone is on Universal Credit, they may be eligible for a maximum discount of 82.5 per cent on their council tax bills and will be required to pay 17.5 per cent of the total amount. This is still a major financial relief for those struggling to find or maintain a medium to a high-income job.
Considering this, What is the Council Tax Reduction Scheme for Universal Credit recipients? We changed the Council Tax Reduction scheme for Universal Credit recipients of working age in April 2020. We replaced the old system with a banded scheme, with your reduction being calculated from a simple table. This scheme looks purely at whether you are working as well as receiving universal credit and, if so, what your monthly earnings are.