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Council Tax and Universal Credit

Asked by John McDonnellLabourDepartment for Work and PensionsTabled Answered 17 November 2025UIN 88565

The question

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 Sir Stephen Timms

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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