The Claimants’ Union of the Industrial Workers of the World has won our first fight!
An IWW member recently approached the union about her Council Tax Support. Plymouth City Council had decided the extra Universal Credit she gets due to her disability counted as “income”, meaning she’d be charged more than £400 extra in council tax every year.
As she’s unable to work and reliant on benefits, this would have caused significant hardship. The LCWRA element of Universal Credit is not disposable income, it’s money that people need to live as a result of extra costs due to disability. Not to mention the absurdity of the government giving people money they need to live, and then taking it back again as council tax! We have been informed that this is an issue affecting a number of claimants in Plymouth. (*)
Together we wrote a letter appealing the decision against her, and had plans for a direct action campaign forcing them to change their policy. But we didn’t need all that! Plymouth City Council caved at the first sign of trouble and accepted her appeal without a fight. Now we’re publicising how it was done, in order to help other people in the same position to fight back against their local council.
As well as threatening legal action for disability discrimination under the equality act, we managed to find a clause buried deep within their policy, which stated an amount of income could be disregarded: “where the applicant would have been entitled to any disability premium, enhanced disability premium, disabled child premium or severe disability premium under any previous scheme, the amount equivalent to the value of the premium (as determined under the Housing Benefit Regulations 2006).” This is obscure and confusing. But many councils have something like this in their Council Tax Support policy documents. The “premiums” they mention are based on things like whether you’re entitled to PIP, if you get the LCWRA element of Universal Credit, and other criteria. For a full list see part 3 of schedule 3 of the Housing Benefit Regulations, here: https://www.legislation.gov.uk/uksi/2006/213/schedule/3/part/3 . We successfully showed that our member was entitled to these disability premiums, which Plymouth City Council didn’t even bother to check.
If this is happening to you, here’s how to challenge it:
1. Get a copy of your council’s policy on Council Tax Support. It might be on their website or you might have to request it. In the policy, look for anything mentioning “disability premium” or “Sums to be disregarded in the calculation of income other than earnings”. Also check to see if they made a “vulnerability statement” for their council tax support scheme
2. Appeal their decision, in writing. There should be instructions for how to do this on their decision letter to you. If not, check their website or give them a ring. Mention any premiums etc you found in step 1
3. If that fails, consult a solicitor. Treating disabled claimants this way is discrimination, and we believe that it can be challenged in civil cases in court. We suggest you do NOT start by trying for a judicial review (these are expensive and take a long time). Instead, tell them you may qualify for legal aid and you want to start a civil case for discrimination under the equality act. We don’t have any lawyers in the Claimants Union (yet!) but we believe it may be possible to win cases this way
As an example, this is the appeals letter we sent in to Plymouth. Research your own council’s policy and adapt it to that!
“I am writing in response to your letter to me dated [FILL THIS IN] regarding my entitlement to council tax support. My council tax support has been reduced. I wish to appeal this on the following grounds:
“1. My income from Universal Credit has now put me in income band 3 as a result of the extra benefits I receive due to the determination that I have “low capability for work and work-related activity” (as acknowledged in your letter). In other words: you have put me in the position of paying extra council tax as a result of my disability. A person in my circumstances who was not so severely disabled, and therefore not receiving the LCWRA payment, would be entitled to the full 80% of council tax support under the scheme. As such, this is direct discrimination on the grounds of disability under section 13 of the Equality Act 2010, and further a breach of your public sector equality duty under section 149 of that act. My disabilities are a protected characteristic under section 6 of the Equality Act 2010. To avoid a claim against you, it will be necessary to issue a new assessment, disregarding my income as a result of the LCWRA determination. Any unreasonable delay may result in a claim for compensation as per section 119 of the Equality Act 2010.
“2. In schedule 3 paragraph 70 of the Plymouth City Council council tax reduction scheme policy, it states income should be disregarded: “where the applicant would have been entitled to any disability premium, enhanced disability premium, disabled child premium or severe disability premium under any previous scheme, the amount equivalent to the value of the premium (as determined under the Housing Benefit Regulations 2006).” I note that I would qualify for the enhanced disability premium under the rules laid out in schedule 3 of the Housing Benefit Regulations 2006. Namely, part 3 paragraph 15 a: “the Secretary of State has decided that the claimant has, or is to be treated as having, limited capability for work-related activity”. This can be seen from the evidence already provided. I further attach my PIP award letter for enhanced daily living and standard mobility, which would have entitled me to both the disability premium and severe disability premium under the Housing Benefit Regulations 2006. Please assess the premiums I would be entitled to and then re-assess my income and resultant income band for council tax support on this basis.
“The policy I am referring to in my second point is “Council Tax Support Scheme for Working Age Applicants”, and can be found via this link: https://www.plymouth.gov.uk/sites/default/files/2024-03/Plymouth-CTR-Scheme-2024-2025.pdf
“In support of point 1 above, I note that there are already similar exceptions made under your policy for those still on the equivalent benefit of Income-related Employment and Support Allowance, but not so for universal credit – see schedule 1 paragraph 7 of the council’s policy. The extra income from the LCWRA element is not disposable income. It results from the extra costs which I need to live, as a result of my disabilities.
“Further in support of point 1 above, I would also like to draw attention to Plymouth City Council’s Vulnerability Statement regarding the Council Tax Support Scheme. This was agreed at the council meeting on Monday 28th January 2013 – https://democracy.plymouth.gov.uk/ieListDocuments.aspx?CId=276&MeetingId=5049 – and includes a statement in part 6.2 “Our Council Tax Support scheme will continue to disregard income received specifically relating to disability[…]”.
“Please confirm receipt of this email at the earliest opportunity. I would appreciate updates as to the progression of my case.”
Don’t forget to adapt this and fill in all the blanks!
This is only the beginning. Councils all over the UK treat disabled claimants despicably and underpay the council tax support we are entitled to. And it’s one part of a bigger problem. The maximum Council Tax Support that anyone may claim in Plymouth is only 80% of the full bill. This places a significant financial burden on benefit claimants across the city, not only the bill itself but also the further hardship of fees and court dates and bailiffs faced by those who fall into arrears. This can be fought, and other councils have changed their policy to pay the full amount.
But big changes are going to need more than just well-worded letters. It’s going to take mass direct action by claimants to force them to listen. That’s why you should join the IWW Claimants’ Union! (or join another claimants’/disability activist group, or start your own!) For now we are chipping away at the worst policies, but we are also growing our numbers and preparing for bigger fights than this. Together, we can stand up to the rich and powerful and force their system to treat us with the respect and dignity we deserve. Don’t suffer alone: we are stronger together!
Link to join the IWW: https://nudb.iww.org.uk/node/1283 (once you’re signed up, send your membership number by email to: claimants at iww dot org dot uk)
* – footnote: The issue specifically is that unlike some other benefits, under Plymouth City Council policy all income from Universal Credit is included in the calculation of which band of Council Tax Support to award. People on Universal Credit who are assessed as unable to work may be paid more in benefits – either the lower LCW or the higher LCWRA element. This amount can push a person over the income threshold meaning they are entitled to less Council Tax Support, and have to pay vastly more in council tax.