"In a decision issued on the 14th of August 2026, Tribunal Judge T. Cole concluded that the Secretary of State had failed to demonstrate that the deduction was lawful with the reasoning behind the decision according to some legal professionals potentially opening the door to legal challenges from other Universal Credit claimants whose benefits have been reduced to repay council tax debts."
"The tribunal’s reasoning appears to be that even where the DWP ultimately has the legal power to impose a deduction without the claimant agreeing to it, the claimant must still be given an opportunity to engage with the process and make representations before that power is exercised."
"If other council tax deductions have been imposed in circumstances where the DWP cannot produce the local authority’s original request, cannot demonstrate the underlying liability order, or did not give the claimant a meaningful opportunity to make representations, claimants may inevitably begin asking whether the same arguments apply to them."
"For anyone across the region currently having council tax arrears deducted from Universal Credit — particularly those who are vulnerable & do not remember being given any opportunity to challenge the proposed deduction — the ruling is likely to make uncomfortable reading for both the DWP and local authorities."
For the local inhabitants of every council area, this ruling means that they can potentially claim back any monies taken without the correct procedure having been followed.
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