Thousands of vulnerable Somerset residents are grappling with significant hikes in their council tax bills following recent policy changes at both central and local government levels.
Somerset Council revised its council tax reduction scheme ahead of its annual budget in February, aiming to create a standardized support system across the county while managing broader financial constraints.
However, a new report from Citizens Advice Somerset reveals that over 4,000 individuals receiving universal credit—specifically those with limited capability for work-related activity (LCWRA)—have experienced increased council tax payments as a direct consequence of these local adjustments combined with nationwide reforms.
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In response, Somerset Council has pledged to review its council tax support scheme prior to next year’s budget and reaffirmed its commitment to aiding residents throughout this process.
Councillor Caroline Ellis, representing Bishop’s Hull and Taunton West, brought the issue to light during the council’s executive committee meeting in Taunton on November 5. She expressed grave concerns, saying: “Citizens Advice Somerset highlighted that our council tax reduction scheme has left a highly vulnerable group—disabled universal credit claimants receiving the LCWRA element—considerably worse off, severely impacting their health and well-being.”
Previously, individuals on income-related Employment Support Allowance (ESA) received a 100% discount on council tax bills. However, with the transition from ESA to universal credit, many now face substantially higher bills despite no change in their financial circumstances.
Citizens Advice Somerset estimates that around 4,481 residents have been affected. One case study features ‘Shaun,’ a 52-year-old under psychiatric care, who saw his council tax support plunge from a full 100% discount to just 10%, costing him over £1,000 more annually.
Ellis questioned the lack of consultation over these detrimental policy effects, suggesting administrative convenience has been prioritized over the welfare of disabled residents. She criticized reliance on an exceptional hardship scheme, calling it “unreasonable and ineffective” given the mental and emotional challenges faced by those affected.
The transition from legacy benefits like ESA and Jobseeker’s Allowance to universal credit began under the Conservative government in 2016 to simplify the benefits system and aims to complete by 2028. The current Labour government has accelerated this timeline, targeting full migration by April 2026.
Deputy Council Leader Liz Leyshon acknowledged the impact of the transition and commended Citizens Advice for their valuable insight. She highlighted Somerset’s financial challenges due to spending exceeding income — with over £400 million annually spent supporting the most vulnerable residents. The council allocated £800,000 from the household support fund to adjust the council tax reduction and hardship schemes accordingly.
Leyshon also pointed to a systemic unfairness: Somerset’s lower council tax base alongside higher levels of need, a structural issue requiring national attention. The government has promised a fundamental review of council tax and business rates, though no timeline is currently set.
Looking ahead to 2026/27, Leyshon plans to revise the exceptional hardship policy and shape the revamped Crisis and Resilience Fund (formerly the Household Support Fund). This review will be presented to scrutiny committees before council approval. She emphasized the council’s continued dedication to supporting residents through these ongoing changes.