Council Tax Reduction and disregarded benefit backpayments – advice needed

kami84
kami84 Community Member Posts: 47 Connected
in Employment & Support Allowance (ESA)

Hello,

I receive Universal Credit, ESA and PIP and have significant disabilities.

My local council recently reassessed my Council Tax Reduction because of savings that include accumulated DWP benefit backpayments.

I had previously supplied evidence from the DWP explaining these payments and their capital disregards. The council had already assessed my circumstances using that evidence.

However, it has now decided that my capital exceeds its savings threshold and calculated a substantial Council Tax Reduction overpayment.

Although the council has written off much of the overpayment, I have received a new bill requiring monthly instalments of almost £400, which I cannot afford.

My questions are:

  1. Must local councils apply capital disregards for DWP benefit backpayments when assessing Council Tax Reduction?
  2. Can the council reassess capital that it previously examined after receiving DWP evidence?
  3. How should I challenge the decision and request an affordable payment arrangement?
  4. Does the council have to explain how the overpayment write-off has been reflected in my revised bill?

I would appreciate advice on the relevant rules and my appeal rights.

Thank you.

Answers

  • Kimi87
    Kimi87 Community Member Posts: 9,131 Championing
    edited October 12

    Council Tax Reduction is decided on at a local level and each local authority has different rules for this meaning it's very hard to advise on individual cases from here.

    I'd recommend contacting a local welfare rights organisation who will be familiar with the local rules and can advise on your questions.

    https://advicefinder.turn2us.org.uk/

    In the interim, while it might not be desirable you do appear to have capital that can pay your bill, Council Tax is a priority bill due to the consequences of non payment being extremely serious.

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