Who should pay the council tax?

[Cavapoo123]

A couple are moving in together. Person A is moving into Person B’s house.

Person A works full-time, currently pays £1500 in house bills in their own place (rented), will only be paying around £700 once moving into Person B’s house (also rented). Person B has no children. Earns around £2000 per month after tax.

Person B doesn’t work due to ill health, is on disability benefits, also has a disabled child who receives disability benefits. Also receives £120 per month child maintenance. Person B’s benefits will go down by around £800 once Person A moves in, but will be making up some of the money by saving on some of the joint house bills that Person A will be contributing towards.

Person B currently doesn’t have to pay council tax due to disability exemptions, however once Person A moves in, the house will have to pay council tax again which even with the single person discount will be around £190 per month.

Who is responsible for this council tax bill?

To be fair to @Cavapoo123 I don't think she's saying that she should still get a Council Tax Reduction. She's just asking who should meet the cost of the shortfall.

All bills should be shared 50/50, unless significant discrepancy in income. If so then it should shared proportionally to incomes.
The split should ensure each person keeps a reasonable and fair amount for their own personal expenses.

Everything else is unnecessarily complicated. The loss of benefits is a choice person B makes when their partner move in. Same for the council tax - it's a household, not a flat share. The entire system is based on the fact partners support each other financially (I'm not saying in agree with this, it's just the reality of the benefits and tax system in the UK).

It could be that moving in together is not the right decision for person A or B, financially. It's a choice they both have to make.

In most (but not all) areas, the only 100% exemption for disability is if the GP has given a Severe Mental Impairment certificate. A quick Google suggests that there are some LAs such as Camden, Wandsworth, Mid Devon, etc., who do give 100% reduction for being in receipt of PIP, but they go above the requirements of the law.

Why 50/50 when person B has a child who will use facilities?

I agree.

If you aren't both on board with one pot and equal spending, if it's an issue already, it may go on to be a problem. You're quite obviously Person B, which I'd argue makes you more vulnerable, so think carefully.

Making a joint claim because your boyfriend moves in is a significant change of circumstances and if you were on the protected enhanced payment from transfer to UC from ESA, it will be a new claim.
A couple shouldn't be trying to manipulate benefits.

If it's not a boyfriend moving in and it's a "lodger" your benefits wouldn't change and you'd be responsible for the CT as it's your house.

Why 50/50? Why should A be paying 50% of the child’s costs? Their own non resident parent should be paying towards their needs.

But they won't be using half, they'll be supplementing the child too

You say you are losing £800 but you are also gaining £700 so the difference is £100, divide that by 3 and ask for £735 ish.
Then all is square!
You are also gaining help with all other bills, don't be greedy.

Because they decide to live together as a household. If they want to live separately with separate finances, they shouldn't move in together.

Oh ok, sorry. If I were in that person's position, and I wanted to retain the love and respect of my partner, I would unquestioningly pay my half of the council tax from my benefits. I do understand that they're exempt at present. The fact that there's even this question arising doesn't bode well for the joint household in my opinion.

I guess the biggest question is what has A said about it all???

I think I'd be rethinking the whole idea and the strength of this relationship with this commitment. If these issues are already a big deal then this won't end well.

Unless finances are going to be completely joint, I don’t think you should move in together. The main point is that person A will be better off and person B worse off and that isn’t fair.

Does person B’s ex contribute toward their child at all? Either way, you need to keep living apart and just spend weekends together.

Would advise not to put them on the tenancy until you know it will work out. You can still declare them without them being a tenant.
I would suggest that A quibbling about paying council tax while B is losing so much income shows this isn't going to last the long haul.

Agree with this, just split it. Also I’d imagine your benefits would be higher than person A’s wage?

Until it's all discussed and decided then no one should be moving in with anyone else.

Your primary responsibility is your child, assuming you’re person B op. Why on earth are you moving someone in when it will have such a huge hit on your finances and risk your security? It’s madness.

Person B should NOT put someone on the tenancy agreement as that could effectively make them homeless in future.
Persons A and B should both be equally better off as a result of moving in.

So work out everyone’s costs beforehand.
Work out the costs together.
Split the difference.

The DC won’t be using significant amounts of electricity and water, given that person B plans to cover her DCs food and day to day expenses separately.
Person A may use more than person B, depending on their wfh and eating habits. People tend to be less careful when someone is splitting the bill with them.

The person moving in will also be a person responsible for paying the council tax according to the local authority. So if the original resident doesn't pay then the other party can be persued for the debt. Regarding the bills, those should be paid proportionately according to the income of each person. If you aren't happy with that, don't move in.

I was literally just going to ask this?!

It might just be me but it would have been easier to say my partner or me instead of the person a and person b stuff, unless that is your names in which case 😳

A is gaining 800 quid a month , B is losing 100 quid a month.

A should pay. The financial impact is already too great on B and actually I think A should be contributing a bit more so they're both balanced.

Why does it all come down to council tax? There are a whole host of household bills and responsibilities that need to be discussed surely?

I'm assuming A&B are in a romantic relationship and this is them moving in together as partners.

Why don't A&B have a joint account from which all the household bills are paid. Both pay into it but the percentages of who pays what is dependent on income. This is what my husband and I did when I went on maternity leave then worked part time while the children were younger. It's changed as I've worked more days and earned more.

Your question is "who is responsible for the council tax payment". The whole household is responsible so it comes out of that joint account.

What you've not mentioned is how much income you have from the disability benefits other than it decreasing by £800 post move. That's all I'd need to make a sensible suggestion for who pays what into that joint account, even without knowing how much the household bills come to.

I'd also add that the child maintenance B receives doesn't sound like much compared to what my husband used to pay for his daughter.

And if person A does not wfh and person b is at home running up the electricity bill etc?