Paying back Council Tax universal credit reduction

80srichkid

Hi, I was asked to send my UC statements for the past 2 years to the Council Tax department. The next thing that happened was I recieved a bill for the year which looked like more than 50% of what it should be - around £3300 instead of just under £2000. It looks like they are trying to claim back overpayment. I have been recieving UC since start of 2020 and this is the first time they've asked for new records. I'd assumed there was some joined up process where I was getting the right entitlement each month and had no idea there might be a scenario where I'd have to pay some back. Argh. Nearly £300 has just been taken from my account (between me and housemate) and wiped me. I've sent them a message but it takes ages for them to reply. Not heard back from an email querying the £300 bill on 5 April yet. Any advice? Can they take back money from 2 years ago? Should they be asking me to submit records more often? Thanks.

poppy12345

Yes, they can ask you to repay any money that's owed, regardless of how long ago it was. If there's been any changes in your circumstances over the past 2 years then it's your responsibility to report those changes.

80srichkid

Thank you poppy. I meant to say I'd queried the £3000 on 5th April. I hadn't thought of a change in circumstances, my earnings vary each month and looking back would've been on average lower in the first year due to covid ... If I am earning differently easy month I'm not sure how to report a change in circumstances unless there is somewhere I'm supposed to upload my earnings each month, which I wasn't aware of. Thank you again.

80srichkid

I do report my income and expenses each month through UC, so is that not essentially letting them know of my income?

elsien

Did your local council clarify how they have reached the figure that they have?

Council tax reduction is a different system to universal credit so if you haven't been letting the council know if any changes that may be where the issue has arisen.

You need to ask them to show you their sums.

80srichkid

Thanks Elsien. I will check again if they gave more info. Will ring Citizens Advice tomorrow to. I'm not sure what changes I could've told them about as I earn differently each month. Looking at the reduction bands for this year, I can see I'm no longer entitled. I wasn't aware of these bands til now. I'm not sure what the bands were on previous years

elsien

I think the changes you should have told them about was the differing amounts you earned each month. If you do end up owing more than you expect you can at least ask them about a repayment plan.

sarahlply

unfortunately as pointed out the two systems are linked but our council periodly check our uc claim against their records, they can legally do this.

When I applied I had to sign to agree to notify my council of changes of income, my husband works shift patterns so if he ever works a premium overnight shift then we loose our council tax support discount, the last time this happened we were only 60 pence over the banding. I have to send his pay slip or the uc award notice details to them now monthly to avoid this happening again, it's being done at their request/suggestion due to my disability and vulnerability level. Glad your going to contact CAB and hope they can help with a payment plan.

80srichkid

Wow, thanks Sarah. I'm guessing there might've been something about sending them income details each month but I completely missed it. I'm wondering why they're only asking for an update after 2 years. That's tough about the 60p, I'm sorry.

poppy12345

It is always your responsibility to report all changes, it will tell you this on your benefits award letter.

80srichkid

I just don't understand what is meant by 'changes' but I obviously shouldn've asked more questions. My income changes each month, and with UC I fill all that in each month, but there is nothing like that for CT.