Thousands of Somerset’s most vulnerable residents have experienced significant increases in their council tax bills due to recent changes in both central and local government policies.
Before setting its annual budget in February, Somerset Council revised its council tax reduction scheme to create a more uniform support system across the county while tackling broader financial pressures.
However, a study by Citizens Advice Somerset reveals that over 4,000 people receiving universal credit—specifically those with the limited capability for work-related activity (LCWRA) element—have been adversely affected. These individuals have seen their council tax bills rise sharply as a consequence of the council’s changes combined with national government reforms.
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In response, the council has pledged to review its council tax support scheme before next year’s budget, reaffirming its commitment to assisting residents during this process.
Councillor Caroline Ellis, representing Bishop’s Hull and Taunton West, raised concerns at the council’s executive committee meeting on November 5 in Taunton.
She explained, “On October 2, Citizens Advice Somerset briefed all councillors highlighting how our council tax reduction scheme has drastically worsened the situation for a vulnerable group of universal credit claimants—those with LCWRA—resulting in damaging consequences to their health and well-being.”
Councillor Ellis pointed out that disabled individuals unlikely to work have faced council tax bills increasing by several hundred pounds after being moved from income-related Employment and Support Allowance (ESA) to universal credit. “Their income hasn’t changed—the only difference is the name of the benefit they rely on.”
Previously, under Somerset’s council tax reduction schemes, people receiving income-related ESA were entitled to a 100% discount on their council tax bills.
Citizens Advice Somerset estimates that up to 4,481 residents may have been negatively impacted by these reforms.
One person featured in the study, known as ‘Shaun,’ had his council tax support slashed from 100% to just 10%, making him over £1,000 a year worse off. Shaun, 52, is under psychiatric care and on multiple medications for mental health conditions, rendering him unable to work.
Councillor Ellis added, “It sent chills down my spine—I am deeply concerned for the residents affected by this. Why was there no consultation this year given the clearly negative impact? Has administrative convenience been prioritized over the well-being of disabled people?”
She warned that relying on vulnerable, stressed individuals to navigate the complex and uncertain exceptional hardship scheme is unrealistic and ineffective.
The move to universal credit began under the Conservative government in 2016 as part of an effort to streamline benefits, with the transition expected to finish by 2028. The current Labour government is accelerating this, aiming for completion by April 2026.
Deputy council leader Liz Leyshon thanked Citizens Advice Somerset for its insights and reassured that the council is devoted to reviewing support for Somerset’s most vulnerable.
Speaking to Councillor Ellis, Ms. Leyshon said, “Many residents, including those with limited capability for work and work-related activity, moved from ESA to universal credit this year. We recognize the challenges this transition poses.”
She highlighted the council’s financial predicament: annual expenditure exceeding £400 million to support those in need, funded largely by council tax revenue.
“In response, we made necessary adjustments to our council tax reduction and exceptional hardship schemes, allocating £800,000 from the household support fund,” she explained.
Ms. Leyshon acknowledged regional disparities, noting the structural unfairness where Somerset’s lower council tax base coincides with high levels of need—a national issue requiring attention.
While the government has pledged a thorough review of council tax and business rates this parliament, no implementation timeline has been announced.
Looking ahead to 2026/27, Ms. Leyshon said the focus would be on updating the exceptional hardship policy and launching the new Crisis and Resilience Fund, replacing the household support fund.
“We are reviewing the exceptional hardship policy now, with plans to present it to scrutiny committees and the full council by December. We remain committed to supporting residents through these changes,” she concluded.