Local authorities are bracing themselves for another legal challenge to their decision to hike council tax bills for claimants who were forced to migrate from employment and support allowance (ESA) to universal credit (UC).
In February 2026 Benefits and Work reported that disabled claimants who have been hit with a big increase in their council tax liability after migrating from ESA to UC) may be able to argue that this is unlawful.
Benefits and Work continues to hear from readers who, contrary to promises by the DWP, have found themselves much worse off after migrating to UC because their council tax bill has shot up. Often this is the case even though their level of income has not changed. What has changed is that their ESA was previously disregarded when calculating their income for the purposes of setting their council tax reduction, whereas the equivalent elements of UC are not. This means that they are facing higher council tax bills as a result of their UC migration, when they were previously entitled to a council tax reduction.
We understand that some people’s care charges have also been affected. For some people the UC migration means that their council is now taking into account elements of their UC as income when calculating how much they should be contributing towards their care charges.
We previously reported on two claimants in this position who had brought a claim against Three Rivers District Council in relation to the failure to disregard their transitional protection element. Those two individuals were able to settle their claim by agreement between the parties and received compensation, but the matter did not proceed to a final hearing.
Now, another claimant, Andy Mitchell, has challenged Somerset Council’s council tax reduction policy. Somerset, like a number of other councils, only disregards the housing element of UC but counts all other aspects, including child and disability related elements as income.
Until recently, Andy, who lives in Taunton, did not have to pay council tax under Somerset Council’s reduction scheme in recognition of his disability. However, after being migrated from ‘legacy’ benefits to UC, the council reassessed Andy’s entitlement and drastically reduced the relief he receives towards council tax.
While Andy used to not have to pay any council tax, after his migration to UC, he only received a reduction of only around £2 per week, meaning his council tax bill was more than £1,100 per year – despite there being no change in his level of income or his needs.
Andy’s case argues that Somerset’s scheme unlawfully discriminates against disabled people because it treats disability-related elements of UC as if they were ‘spare income’. This means that claimants whose benefits are increased to reflect disability-related needs are assessed as less in need of support and are required to pay more council tax than non-disabled people with comparable financial circumstances. It also treats people with identical needs and incomes differently, based on whether they are receiving ‘legacy’ benefits or UC. Andy’s case also argues that the council failed to properly consider the impact of its scheme on disabled people and that it is irrational for a person’s entitlement to change radically when their financial needs have not changed.
The case also highlights concerns about the council’s reliance on its discretionary hardship payments scheme to plug gaps created by the rules in its main council tax reduction scheme, arguing this creates uncertainty, barriers and additional distress for people who are already vulnerable.
Andy’s claim has been given permission to proceed on all grounds and is due for a final hearing in Bristol on 6-7 May. The judgment in this case has potential wider implications for many other residents in similar situations, whose migration to Universal Credit has impacted their eligibility for council tax reductions.
However, it is important for individuals who have recently become affected to take action as soon as possible if they wish to challenge this, as judicial review proceedings need to be brought promptly and in any event within 3 months of a decision under challenge so there is no time to lose.
Carolin Ott from law firm Leigh Day is representing Andy Mitchell together with barristers Tom Royston and Alexa Thompson from Garden Court North.
What to do if you are affected / how to get help
Andy Mitchell’s case may bring relief to many claimants hit with higher council tax bills, if it is successful. But, because differently local authorities have different rules, not all may be affected to the same extent by the decision, even if Andy’s challenge is upheld.
So, if you have found yourself in Andy’s position (i.e. your council tax bill has gone up as a result of your migration to UC), or if your care charges contribution has increased as a result of UC migration, you may be able to take steps yourself to challenge the increase in your council tax or care charges, or request support.
The first thing to do is to check the date of your bill or letter setting out your care charges contributions and consider when you became aware of the impact of your UC migration. If it is not clear from your bill / the letter how the council has decided to decrease your council tax reduction or increase your care charges contribution, you should ask for a detailed explanation. You should also check the letter and bill received carefully for any information about steps that can be taken to challenge it. There will usually be some information about how you can appeal or ask for a review of the council’s decision.
Local authorities usually operate a Council Tax Discretionary Relief / Exceptional Hardship policy for people experiencing hardship and struggling to pay their Council Tax. It is therefore worth looking at what additional support your council is offering and applying for it.
Different councils offer different types of support. For example, East Devon Council (which operates a scheme similar to that in Somerset) operates various schemes that residents can apply for to receive additional support:
- Help through the council’s exceptional hardship fund
- Help through the council’s household support fund:
As well as seeking additional information and support from your council, you may wish to seek legal advice. Due to the strict rules on the timing for bringing challenges, it is best to seek legal advice as soon as possible after you receive your bill or letter regarding care charges upon migration to UC. You should be taking action as soon as you become aware of the issue.
If you would like to get help from a Solicitor, the law firm representing Andy can be contacted at Leigh Day: This email address is being protected from spambots. You need JavaScript enabled to view it.. You can also find other solicitors who may be able to assist using the Law Society search function: Find a Solicitor - The Law Society.
You can also Citizens Advice or other local welfare or debt advisors and they may also be able to refer you to the right place for help.
In order to get legal advice from a solicitor without a charge to you, you will generally need to be eligible for legal aid. So, when you first make contact with a solicitor, it is helpful for you to provide the following information:
- Who your local authority is
- When you migrated to UC and when you received your CT bill / care charge contribution letter – it may be helpful to provide a copy
- How much your council tax liability/care charge contributions have increased
- If you know whether you are eligible for legal aid (key information solicitors will usually request includes whether you have savings £3,000 and whether you own your property)
- Any information about whether you have tried to contact your local authority to raise concerns and if so what the response was. This should include information about whether you have applied for any discretionary support like support from an Exceptional Hardship fund
We’ll keep readers informed about the outcome of Andy Mitchell’s case.
