Q4a Change to earnings disregards
Remove the additional earnings disregard.
When a claimant or their partner aged 25 or over has earned income and is working full time 30 or more hours per week or is a lone parent, a couple with children or disabled and working 16 hours or more, then £17.10 of those earnings are ignored each week.
The change would make it easier for working-age people on Universal Credit to claim Council Tax Support. Currently, a claim for Council Tax Support has to be made separately from Universal Credit. The proposed changes would
- make a claim for Council Tax Support automatic as part of the claim for Universal Credit
- make re-claiming Council Tax Support after a short break in Universal Credit simpler
The additional earnings disregard mirrored working tax credit. As working tax credit has been replaced by Universal Credit, we no longer get any information regarding the hours worked and the additional element is not paid in Universal Credit. So that we can make the scheme fair to those working and not yet on Universal Credit and automate decisions for those on UC we want to remove the additional earnings disregard so any council tax support due is paid quickly and without the need to complete a lengthy claim form.
Gary - receives Universal Credit and is in the Working Age employed group
01/04/2021 - 31/03/2022 £12.83
Gary's annual Council Tax Support is £668.99
With the removal of the additional earning disregard Gary's entitlement would be change to £9.41 but with the increased minimum of £5 instead of £10 he would get
01/04/2021 - 31/03/2 £9.41
Gary's annual Council Tax Support would be £490.66
Q4a Is asking if you agree we should remove the additional earnings disregard just for those claimants getting Universal Credit. There are currently 31 Working Age customers on Universal Credit who receive the £17.10 additional earnings disregard (AED) per week.
Q4c Is asking if you think we should remove the additional earnings disregard for all working age claimants, not just those getting Universal Credit. There are currently 81 Working Age customers in total who receive the £17.10 additional earnings disregard (AED) per week.
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