Universal Credit - Council Tax Reduction - Rebate?

PaulStaleman

Hi there, wondering if anyone can help?

Last year I was on universal Credit for most of the year, working self-employed, some months my earnings meant I didn't receive a UC payment.
I applied to the council for a concil tax reduction which was granted on the 4th of April and then taken off again on the 17th April (so the reduction was active for 2 weeks). I guess because I had phoned UC and disclosed my earnings for that month, which were too high for a Council Tax reduction to apply.

I now have Universal Credit letters stating the months where I made a claim to Universal Credit, those being Jan, Feb, April, May, Sep and November.
The Council Tax bill was forwarded to Stirling park Sherrif Officers and I've been paying them since around August, but now I realise that the Council Tax reductions were not applied to my account I feel like I am overpaying the actual amount owed. The council say that I should have told them every month what my earnings were but I didn't so now there's nothing they can do and I must pay the full amount.

This is probably an oversight on my part, I kind of assumed Universal Credit and Council Tax reductions go hand in hand and they would be talking to each other, updating their systems, but apparently this isn't the case.

Surely I can show the council the proof that I was on a low income and claim a rebate on council tax?
Council say no, but that doesn't really seem fair? ... just wondering if I was on the phone with someone who had the Monday morning blues, or if this is correct?

CIS

This is probably an oversight on my part, I kind of assumed Universal Credit and Council Tax reductions go hand in hand and they would be talking to each other, updating their systems, but apparently this isn't the case.

They are completely seperate systems - DWP are very reluctant to supply any information for Council Tax Reduction purposes as it's not their system (unlike, for example, housing benefit). There are time limits for backdating Council Tax Reduction and falling outside of this will generally mean that the adjutsment is not processed.

PaulStaleman

But the council must have known, somehow, that I had phoned UC and told them my earnings, hence the Council Tax reduction was removed.

The council say I can backdate it for one month, which is of no use to me since I'm working now ... however, I'm sill repaying the tax for that period and getting threatening letters from Debt collectors when I told them I cannot afford this years Council tax and last years (especially since last years shouldn't really be due, since I was on benefits at the time).

marliepanda

PaulStaleman wrote: »

But the council must have known, somehow, that I had phoned UC and told them my earnings, hence the Council Tax reduction was removed.

The council say I can backdate it for one month, which is of no use to me since I'm working now ... however, I'm sill repaying the tax for that period and getting threatening letters from Debt collectors when I told them I cannot afford this years Council tax and last years (especially since last years shouldn't really be due, since I was on benefits at the time).

It is up to you to know what to do, or to ask. The council may have found out one UC payment (at my council we ask for it to be shown to us as we cannot access the UC systems, are you sure you didnt show them your UC statement...) and we ask that the UC award is brought to us every month unless it remains the same for 3 months and then we only ask for it if it changes.

You assumed they talk to each other, and they do not.

CIS

Unless it's changed since I worked for a local authority then DWP would pass only very limited information to the council but there was no requirement for them to do so - it's likely that they probably only told the council when the claim started and stopped. Only the council can comnirm where the information came from.

Regardless of what DWP pass to the council the onus for Council Tax Reduction is on the claimant to ensure that the council are notified of any details.

pmlindyloo

PaulStaleman wrote: »

But the council must have known, somehow, that I had phoned UC and told them my earnings, hence the Council Tax reduction was removed.

The council say I can backdate it for one month, which is of no use to me since I'm working now ... however, I'm sill repaying the tax for that period and getting threatening letters from Debt collectors when I told them I cannot afford this years Council tax and last years (especially since last years shouldn't really be due, since I was on benefits at the time).

See bolded part.

I understand where you are coming from.

If you are quite sure that you did not show them your UC statement showing earnings deduction then they must have got their information from somewhere.

Based on this I am wondering whether it would have been an acceptable reason for not informing them of future earnings. You believed that UC/HMRC would continue to inform them of your earnings.

Against this is the fact that the council tax decision letter makes it quite clear that you must inform of a change of circumstances.

It might be a good idea to telephone the council and ask why the CTR was originally stopped. Answer - because you were earning too much - question from you - how do you know this?

Then depending on their answer you could go to CAB for some advice about whether this is worth appealing. In fact, a visit to CAB may be a good idea anyway for help with your council tax debt.

PaulStaleman

So the question remains ... the council won't / can't backdate a Council Tax Reduction even though it was applied for at the time?


Edit : thanks for that pmlindyloo

CIS

PaulStaleman wrote: »

So the question remains ... the council won't / can't backdate a Council Tax Reduction even though it was applied for at the time?

It may sound odd but that's generally how it works where there are backdating limits - if the information isn't provided within the relevant period to adjust a claim then the information is effectively 'ignored' for calculation purposes and the information which was available within the time limit is that used.

You can certainly challenge and question the council but I'd expect they'll not reverse their decision.

marliepanda

PaulStaleman wrote: »

So the question remains ... the council won't / can't backdate a Council Tax Reduction even though it was applied for at the time?


Edit : thanks for that pmlindyloo

I'm assuming you applied but you were not eligible due to your payment at the time (you say it took you over the limit for CTR)

Therefore you would need to either reopen your claim or apply again, your claim doesnt just stay open waiting for you.

pmlindyloo

marliepanda wrote: »

I'm assuming you applied but you were not eligible due to your payment at the time (you say it took you over the limit for CTR)

Therefore you would need to either reopen your claim or apply again, your claim doesnt just stay open waiting for you.

I understood that the OP received council tax reduction for 2 weeks ish and then it stopped because of earnings.

marliepanda

pmlindyloo wrote: »

I understood that the OP received council tax reduction for 2 weeks ish and then it stopped because of earnings.

I'd have to see the bill to know for certain but if the earnings took them over the threshold it would be unusual for a CTR reduction to apply for only 2 weeks, but theres not really enough info to go on overall.