Help protect children from gaming harms.

Take our survey

Please or to access all these features

Politics

Did you know that for very low earners with disabilities council tax is a 50-75% and sometimes 100% tax on wages?

27 replies

Gtfc · 31/05/2026 21:42

Local authorities now administer their own schemes for council tax support/relief and most of them class universal credit as income when calculating eligibility. This means they also class all the parts of universal credit relating to disability that previously were ring fenced, as income. A person in receipt of these and undertaking a small amount of regular work, earning say £100-400 a month, in many local authorities now is no longer eligible for council tax support and must pay the full bill, even if that full bill is the same as their total earnings.

Some local authorities are even counting PIP as income meaning that people eligible for PIP are having to spend their PIP on paying tax.

Surely this is a gross diversion from what these monies are supposed to be used for. What is even the point in having disability benefits if those benefits are spent on local tax?

OP posts:
LifeBeginsToday · 31/05/2026 21:55

But it is income. Yes it is given due to the cost of being disabled, but it is still income. Pip is also not an out of work benefit. It is there for all. And disabled elements of UC give more income, but is still means tested.

I work and claim PIP, I would be outraged if my wages were income but their UC wasn't. Given that it is there to replace wages and is lost when wages are too high.

Gtfc · 31/05/2026 21:54

This is the only population group in the UK that has a 100% tax rate

OP posts: