Universal credit a different side

[mikeymack2002]

On the 05/12/2015

 

 

Government considers adding council tax support to Universal Credit! Full story here

>>http://www.publicsectorexecutive.com/Public-Sector-News/government-considers-adding-council-tax-support-to-universal-credit

 

 

 

 

"Former MP and council leader Eric Ollerenshaw will chair a review on behalf of the DCLG to assess if local council tax support (LCTS) schemes are acting as a fair and effective system countrywide, and whether it should become part of Universal Credit payments in the future.

 

The review will also examine how the reform of council tax benefit has been implemented and how it affects those reliant on this support".

 

 

 

 

Although this is just a review at present it could become fact. I am just opening up a discussion in to this new matter and hopefully let the wider claimant know now just in case they make it part of UC...

 

 

 

 

I can for see several issues with this in as much as follows:

 

 

1. If the Government do act on this and make the claimants responsible for paying their own CT, then giving them the money to pay it.

 

 

2. Since it often takes up to 7 weeks to get your first payment then you may already be in arrears by this amount.

 

 

3. If in arrears you could face the fact you could be taken to Court and a Liability Order (LO) issued against you.

 

 

4. If they do take you to Court and get an LO issued you may face a letter fee of about £75-00

 

 

5. Then if you fail to set up an agreement to pay they may add a further £235-00 to your bill.

 

 

6. I can see that in some cases where this can cause even more of a hopeless situation for some claimants.

 

 

7. There could be further debt issues and then all of this spiralling out of control!

 

 

 

 

What can claimants do to stop this? Their only option could be is to save the amount and keep it safe. This just so when you go on to Universal Credit (UC) then you can pay your bill on time (CT) therefore not falling in to this horrible trap.

[id6052]

another issue will be that to simplify calculations for DWP - it is highly likely that the level of assistance will be standard rate - and not take into account CT banding or charges

[silverfox1961]

I cannot see this happening any time soon due to the complexity involved with CT banding. There will also be other issues yet to be uncovered where people are rubbish at money management.

 

On to some of the points raised above.

 

1. If the Government do act on this and make the claimants responsible for paying their own CT, then giving them the money to pay it.

 

For this to be effective, the money needs to be in place ready for the financial new hear (April). I can't see this happening as it would just confuse issues even if that years CT has already been agreed.

 

 

2. Since it often takes up to 7 weeks to get your first payment then you may already be in arrears by this amount.

 

If this does come in, councils will be told to exercise forbearance whilst the assessment is ongoing.

 

3. If in arrears you could face the fact you could be taken to Court and a Liability Order (LO) issued against you.

 

Not necessarily. By keeping the council updated, they should act as above.

 

 

4. If they do take you to Court and get an LO issued you may face a letter fee of about £75-00

 

Not forgetting the costs of getting the LO in the first place. This can range from £75 up to £125 depending on where you live. You can also challenge the issuing of a LO when communications have been maintained.

 

 

5. Then if you fail to set up an agreement to pay they may add a further £235-00 to your bill.

 

If you have kept up communication with the council, there would be no need for EAs to get involved

 

6. I can see that in some cases where this can cause even more of a hopeless situation for some claimants.

 

Very true. The complexity involved in the benefits system confuses many people who would consider themselves reasonably intelligent. What about the people with mental health problems, the partially sighted or even the illiterate.

 

 

7. There could be further debt issues and then all of this spiralling out of control!

 

Quite! As UC is paid in arrears there is the possibility of people resorting to usury just to get money for heating, lighting, cooking and food etc. There may be loans available via DWP but you still have to pay this back.

[sadone]

I hope this never comes to pass. It would be the straw that brakes the camels back if it does imo.