Universal Credit and Council Tax Support
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Universal Credit and Council Tax Support

We have introduced a new Council Tax Support Scheme from 1 April 2017 for people who claim Universal Credit.

The new scheme is for people who receive the new Universal Credit.


What is changing?

Once you move over to Universal Credit your Council Tax Support will be worked out differently. Council Tax Support will still be able to cover up to 75% of your Council Tax bill. Anyone whose only income is Universal Credit or any of the other national benefits or welfare payments will get the maximum amount of Council Tax Support.

Anyone who has income that is not a state benefit or a welfare payments, can get up to 75% of the Council Tax depending on their income. The amount that you will get depends on your earnings and any other income that you have that is not a state benefit or welfare payment. The higher your income that is not from benefits the less likely you are to receive Council Tax Support.


How do I know if I can get Council Tax Support if I have income other than benefits?

There is one guide for single (PDF 182KB) people and another one for couples (PDF 180KB). You can use these guides to work out if you are likely to qualify for Council Tax Support.

The guides show you how the amount of Council Tax you pay will be reduced if you get Council Tax Support.

Do not include your Universal Credit or any other benefits or welfare payments when working out how much monthly income you have.

If you have a partner you must include their Income, but if you have other adults living with you, other than your partner, their income will not affect your Council Tax Support.


What about savings?

You cannot claim if you have more than £16,000 capital.


Will people in the protected groups be affected by the change?

Anyone who was in one of the 4 protected groups below will have more Council Tax to pay when they transfer onto Universal Credit.

  • People entitled to the Severe Disability Premium
  • People entitled to the Enhanced Disability Premium
  • Carers
  • Lone Parents of Children under 5 years old

Depending on your circumstances, your Universal Credit could be more than the benefits that Universal Credit will replace, this could mean that although you will have some Council Tax to pay, you may have more income overall to help you pay the Council Tax However, if you lose Council Tax Support and you cannot pay the Council Tax from your Universal Credit you should contact us. There will be a Discretionary Protection Scheme to help people who were protected from the 25% reduction who lose Council Tax Support and who have special circumstances and cannot pay their Council Tax.

Pensioners are not affected as they cannot claim Universal Credit and will stay on the existing Council tax Support Scheme. War widows and war veterans are also not affected they will still get Council Tax Support up to 100% of their Council Tax.​​​​​​​​​​​


Where can I find out more about the new scheme?

You can download the new scheme (PDF 2MB) and the Equality Impact Assessment (PDF 277KB)

To view documents in PDF format you will require the free Download Adobe Reader Adobe Acrobat Reader


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