Council Tax Reduction eligibility on Universal Credit

Yes, you can get Council Tax Reduction (sometimes called Council Tax Support) if you are already on Universal Credit. In fact, being on Universal Credit can help your application.

Key points:

1. Council Tax Reduction is a separate scheme administered by your local council, not by the DWP. It is not part of Universal Credit itself.

2. Universal Credit replaced the old Council Tax Benefit at national level, but the government devolved responsibility for council tax support to individual local authorities in England from April 2013. Each council runs its own scheme with its own rules, so entitlement and the amount of reduction vary depending on where you live.

3. If you are on Universal Credit, many councils will treat this as evidence of low income and may automatically passport you to a reduction, or at least use your Universal Credit award as a starting point for assessing your entitlement.

4. You still need to apply separately to your local council for Council Tax Reduction. It is not awarded automatically just because you claim Universal Credit. This catches many people out.

5. Pensioners are protected by a national scheme and generally receive more generous reductions. For working-age claimants, some councils offer up to 100 per cent reduction while others cap support at, say, 75 or 80 per cent, meaning you would still have to pay something.

Practical steps:

1. Contact your local council or check their website for details of their specific Council Tax Reduction scheme and how to apply.

2. Apply as soon as possible because most councils will only backdate for a limited period, often no more than one month, though some allow longer in exceptional circumstances.

3. Have your Universal Credit award notice to hand, as the council will usually want to see it as part of your application.

4. If you are refused or given a lower amount than expected, you can ask the council to look at the decision again and, if necessary, appeal to the Valuation Tribunal.

One further point: if you are in severe financial hardship and your council's scheme does not cover your full council tax liability, you may also be able to apply to the council's discretionary hardship fund or a Section 13A(1)(c) discretionary reduction, which allows councils to reduce or write off council tax in exceptional cases.