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We propose to increase the current Local Council Tax Support (LCTS) income bands, by aligning them with potential increase to the Universal Credit standard allowance. Universal Credit normally increases each year in line with inflation.
If the Local Council Tax Support (LCTS) income bands are not adjusted in line with an increase in the Universal Credit (UC) standard allowance, it could have the following effect:
Reduced Council Tax Support: As your Universal Credit (UC) payments increase, your total assessed income for LCTS purposes would also rise. This could push your income into a higher band in the LCTS system, meaning you would qualify for less Council Tax Support.