Martin Lewis has urged Universal Credit claimants to read up on rules that people often get wrong, pointing them to a scheme that could save £1,500 off their bills. The consumer expert spoke on his BBC podcast about how millions of people on lower incomes could be missing out on Council Tax Support, which can be worth up to £1,500.
Council Tax Support rules vary by area
Mr Lewis told listeners: "This is separate from discounts. Every council runs its own council tax reduction scheme, so what you get depends on where you live."
He said the discounts extend to a 100 per cent deduction with no tax to pay, but there is a "jungle of variation" as the qualifying criteria vary widely.
'Biggest mistake' claimants make
Mr Lewis urged his fans to be wary of a common mistake that DWP claimants often make when looking at these council schemes. He said: "The biggest mistake people make about this is they think, 'If I'm eligible for Universal Credit' - which is, you know, the catch-all national benefit - 'then I'll automatically get my council tax support'.
"No, they are totally separate systems. You have to apply for council tax support separately. Now, the people who are likely to get it are those people who are on Universal Credit or Pension Credit, but you won't get it automatically, and that's why so many people miss out."
The expert went on to explain how to access the support and the eligibility rules that can apply. People in England and Wales can search for their council's details through the gov.uk website, while people in Scotland can find the details for their local council through mygov.scot.
Details you may need to provide
Mr Lewis said "you may be asked to provide evidence" in applying for the support, including details of your identity, your rent or mortgage payments, your income, and your savings.
Despite these schemes being very specific, Mr Lewis shared a general rule of thumb about who should check if they are eligible. The financial journalist said: "If you're generally somebody who's on Universal Credit or on a lower income, you should check out your council's criteria for council tax support.
"I mean, 2.25 million people are likely - as possible estimates calculated by councils - missing out on that, and it can be big money."
One person wrote into the show as they were having a frustrating time getting the details from their local council. They said both they and their daughter were on a low income and were receiving Universal Credit. They had asked their council if they could get any discounts but had not heard back yet, asking what they should do next. Mr Lewis urged them to keep pushing for an answer, saying simply: "Get in touch with them and persevere."
