Council Tax and Universal Credit

(asked on 10th November 2025) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, why income that was disregarded under Employment Support Allowance is now being considered as income on Universal Credit for Council Tax and Social Care purposes.


Answered by
Stephen Timms Portrait
Stephen Timms
Minister of State (Department for Work and Pensions)
This question was answered on 17th November 2025

Universal Credit does not replicate previous legacy benefits. Therefore, customers migrating to Universal Credit may be subject to different rules, including different treatment of income and how it is disregarded in assessing their benefit entitlement.

Treatment of income and income-related benefits for purpose of council tax reduction or adult social care charges is not set by the Department, this is set respectively by local authorities and the Department for Health and Social Care.

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