In a significant victory for disabled people receiving Universal Credit, a recent High Court order has ruled that local authorities across the UK must stop counting 'transitional protection' payments as income when calculating council tax liability. This crucial decision has nationwide implications, potentially saving thousands of disabled individuals from unfairly high council tax bills.
The Case That Changed Things
The case was brought against Three Rivers District Council by Lynn and David Bleakley. The couple, who transitioned from Employment and Support Allowance (ESA) to Universal Credit, received 'transitional protection' to ensure their income remained stable during the move. Despite their overall income not changing, Three Rivers District Council wrongly treated this protection as surplus income.
This incorrect calculation meant the Bleakleys were required to pay over £1,500 more per year in council tax than they should have, when they believed they should have remained exempt. Their legal team, Bindmans, argued that this was discriminatory and unlawful, as neither their income nor their needs had actually changed.
Discrimination and Unlawful Practice
Before a final hearing, Three Rivers District Council conceded the claim. The High Court order explicitly stated that including the claimants' transitional protection element of Universal Credit as income was discriminatory and unlawful. This was found to be in direct contravention of Sections 15 and 29 of the Equality Act 2010, and Section 6 of the Human Rights Act 1998.
As a result, Three Rivers District Council has been ordered to pay the Bleakleys £5,000.
What Does This Mean for You?
The implications of this ruling extend far beyond the Bleakleys' case. Emma Pein, a solicitor from Bindmans involved in the case, confirmed that all local authorities must now take account of this important court order. This means that if you are a disabled person in receipt of Universal Credit and receive 'transitional protection', your local council should no longer count this payment when assessing your council tax liability.
Transitional protection is a payment designed to ensure that people moving onto Universal Credit from older benefits do not see a sudden drop in their income. Counting this as 'surplus income' for council tax purposes effectively undermined its very purpose and unfairly penalised disabled claimants.
What to Do Next
- Check your council tax bill: If you receive Universal Credit with transitional protection, review your council tax bill and the calculations used by your local authority.
- Contact your local council: If you believe your transitional protection has been wrongly included as income, contact your local council's council tax department. Refer to this High Court ruling and explain that transitional protection should be disregarded.
- Seek advice: If you encounter difficulties, consider seeking advice from a welfare rights organisation, a local Citizens Advice Bureau, or a legal advice charity specialising in public law or disability rights.
This ruling is a vital step forward in ensuring that disabled people are treated fairly and are not financially disadvantaged by benefit transitions. It reinforces the protections enshrined in the Equality Act and Human Rights Act, providing a clearer path for financial stability for many in our community.