How does council tax affect Universal Credit?

fuzexi

I'm applying for Universal Credit, and I'm moving from a divorce into a property owned by my mother, who wants me to pay rent, understandably. When applying for UC today one of the questions asked was "whose name is the Council Tax under?"  I haven't filled this part in yet, because I'm worried if I give the wrong answer I might not get any help. The council tax is under my mothers name, but I was going to query that anyway because she told me that I am to pay the council tax. So I'm going to ask them to address these letters to me.
So, why are they asking this question? How does it affect the outcome?

poppy12345

Can't answer the question about council tax but are you planning on claiming for help with your rent while claiming UC? If so then it may not be that easy as your mother owns the house. See link. https://england.shelter.org.uk/housing_advice/benefits/claiming_benefits_if_you_rent_from_family

A_Lert

Does your mother live in the property?

If she lives there, she has to pay the council tax, and you will not receive the housing element of Universal Credit even if you are paying rent.

If she does not live there and it's a single tenancy, the tenants (ie you) are responsible for the council tax. It needs to be put in your name once you move in.

If she does not live there and it's an HMO, she has to pay the tax.

If you're living there alone but the council tax is still in your mother's name, I expect Universal Credit won't believe you're living there alone.

calcotti

If you are going to be paying it the Council Tax bills ought to be in your name.
Council Tax does not affect UC but you may be able to claim Council Tax Reduction from your local authority to help you pay the bill. You will only be able to do this if the bill is in your name.
(I am assuming your mother is not living in the property.)
Note that if you are looking for help with the rent through UC questions may be asked about whether or not the tenancy is truly a commercial tenancy given that you are renting from your mother. 

fuzexi

Thanks everyone for your answers. Yes, I'm going to apply for rent help while applying for UC. But my mother doesn't live in the propertly, so I am going to contact the council to ask them to send the Council Tax bill to me. What's an HMO?

calcotti

HMO = House in Multiple Occupation
Was the property previously rented out to others by your mother? Will you be paying the same rent? Will you have a tenancy agreement? Would your mother evict you if you failed to pay the rent? DWP will consider these questions,if they consider that the tenancy is a ‘contrived tenancy’ they will not give you help with rent.
http://data.parliament.uk/DepositedPapers/Files/DEP2020-0646/38._Contrived_tenancies_v5.0.pdf

Bungle5393

fuzexi said:

Thanks everyone for your answers. Yes, I'm going to apply for rent help while applying for UC. But my mother doesn't live in the propertly, so I am going to contact the council to ask them to send the Council Tax bill to me. What's an HMO?

Worth noting that you should have the same protections as if it was a standard tenancy eg deposit held in deposit scheme, annual gas safety inspection, heat and smoke detector provision etc.
I'd definitely explore the points in the above link to make sure everything is above board and watertight. Any financial dealings with family can be fraught with difficulty, so make sure you protect yourself.