Vulnerable Residents Stung by Sharp Council Tax Increase
Thousands of people receiving Universal Credit in Somerset are facing significantly higher council tax bills, with some seeing increases worth around £1,000. This change has disproportionately affected some of the area's most vulnerable residents following an alteration to the local council tax reduction scheme.
The shift occurred after Somerset Council standardised the level of support offered across the region, a move it says also addresses its wider financial pressures. The decision has had a direct impact on more than 4,000 individuals who claim Universal Credit from the Department for Work and Pensions (DWP), specifically those receiving the Limited Capability for Work-Related Activity (LCWRA) element.
Councillor and Citizens Advice Raise the Alarm
Councillor Caroline Ellis, who represents the Bishop's Hull and Taunton West division, voiced profound concern. She revealed that on October 2, Citizens Advice Somerset briefed all councillors on the damaging consequences of the policy change.
"Our council tax reduction scheme has made a very vulnerable group of universal credit claimants – those receiving the LCWRA element – suddenly and considerably worse off," Ellis stated, highlighting the negative impact on their health and well-being.
She explained that this group, which consists of disabled people unlikely to ever be able to work, have been handed bills of several hundred pounds. This financial blow came as they were forcibly migrated from the old income-related Employment Support Allowance (ESA) to Universal Credit. Critically, their actual income did not change—only the name of the benefit they depend on.
Ellis expressed deep personal fear for affected residents, questioning why no consultation was held this year given the policy's negative effects. "Has administrative convenience been prioritised over the well-being of disabled people?" she asked. She also criticised the reliance on an "exceptional hardship scheme" as an unreasonable safety net for people who are already stressed and anxious.
Council Leadership Points to Financial Emergency
In response, Council deputy leader Liz Leyshon acknowledged the challenges posed by the transition from ESA to Universal Credit. She confirmed that the council's corporate and resources scrutiny committee had recognised the issue at its meeting on July 30.
Leyshon attributed the council's difficult decisions to a financial emergency, citing a fundamental imbalance where the council's expenditure exceeds its income. The council spends over £400 million annually supporting those most in need, while its primary income source is council tax.
"In response, we have made necessary changes, including to our council tax reduction scheme and our exceptional hardship scheme, with the allocation of £800,000 from the household support fund," Leyshon said.
She also pointed to a broader, national issue, stating, "I acknowledge that council tax reduction schemes vary across the south west, and that our lower council tax base often coincides with higher levels of need. This is a structural unfairness that must be addressed – nationally."
