A DWP change means that households receiving Universal Credit (UC) are reportedly facing a huge council tax increase. The Government is transferring Brits who receive so-called “legacy benefits” – income support, housing benefit, income-based JSA, income-related ESA, and tax credits – onto the benefit. This “managed migration” process, which started in 2022, has reportedly left people worse off overall.

The amount someone is paid in Universal Credit is calculated each month based on their individual circumstances. This differs from tax credits, introduced by Gordon Brown in 2003, which were calculated yearly. The Government says changes can affect how much a person is paid for the whole assessment period, not just from the date they are reported.

Officials added: “Natural migration has been in place since the introduction of UC. If claimants experience a change in circumstances while on legacy benefits, which previously required a new claim to another legacy benefit replaced by UC, they will need to make a claim to UC.

“They would then naturally migrate to UC and any legacy claim will be closed. Legacy claimants can also choose to move by making a claim for UC (and by default closing their legacy claim), but should only do this if they think they will be better off on UC.

“We want to encourage people who could be better off financially to consider moving to UC. We estimate more than half of current claimants will be better off.”

However, people have contacted Benefits and Work, a website offering help and advice, claiming their council tax bills have been impacted, according to The Sun.

One individual said theirs had increased from £11 to £200. Another said theirs had risen by £64, while another claimed they had been eligible for a free council tax but will now have to pay up.

But benefit claimants could soon be able to claim their money back, after two people won a court battle against Three Rivers District Council.

They claimed that their incomes had not changed when they switched to UC, but officials had nevertheless treated the transitional protection – an additional amount provided in order to help with the move – part of their benefit as surplus income.

This meant, they purported, they were having to pay £1,500 in council tax per year even though they should be exempt.

The High Court concluded that this was discriminatory due to their disabilities, and the authority was ordered to pay damages.

If you are the only adult living in your home, you are eligible for a 25% single-person council tax discount.

There are also discounts for students, people with mental health issues, live-in carers, apprentices, care leavers, those on low incomes and those with disabilities.

A DWP spokesperson said: “We offer Transitional Protection to legacy benefit customers moving onto Universal Credit as part of our commitment that they won’t experience a lower level of benefit entitlement, protecting their incomes and ensuring they have money in pockets.

“Local Authorities are responsible for designing their local council support schemes, and DWP does not issue policy or guidance on this topic.”