Do universal credit claimants need to pay council tax? Who can claim?

Do universal credit claimants need to pay council tax? Who can claim?


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Universal Credit is a system which is replacing six other types of state benefits - known as legacy benefits. These are Child Tax Credit, Housing Benefit, Income Support, income-based


Jobseeker’s Allowance (JSA), income-related Employment and Support Allowance (ESA), and Working Tax Credit. While Universal Credit is currently available across the UK for new applicants and


those who have had a change in circumstances, the replacement of the legacy benefits - known as “managed migration” - is set to happen in stages. The Department for Work and Pensions (DWP)


announced a pilot scheme would take place in July 2019 in Harrogate, North Yorkshire. Universal Credit claimants may be able to apply for an additional payment to the standard monthly


payment, in order to help with housing cost. The housing payment can cover rent and some service charges, for those eligible. Those who own or rent a home, and who are aged 18 or older, will


usually have to pay Council Tax. 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. Someone who receives Universal Credit may be able to pay a reduced


Council Tax bill. However, this will depend on the individual’s circumstances, and where they live. In order to apply for the lower payment, a person should apply for the Local Council


Reduction via Gov.uk. This takes the applicant to their local council’s website, which will advise them on what they need to do. Guidance on the matter can be found at the government’s


Understanding Universal Credit website. Here, it informs readers that the Local Council Tax Reduction is often not backdated, meaning those claiming the money for the first time should apply


for the reduction straight away.