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Universal Credit has been introduced slowly in parts of the UK since October 2013 for working age claimants and will replace Housing Benefit, Tax Credits, Jobseekers’ Allowance, Income Support and Employment and Support Allowance.
It will not replace Council Tax Support. One of the reasons why CTS is being implemented was because the Government could not find a way to put CTS into Universal Credit and they also wanted to localise the support for Council Tax rather than it being controlled and managed from central government. This also meant that the Government could fix the cost so that local authorities had to carry the risk of dealing with economic changes that directly affects the cost of the CTS scheme. Local authorities have a vested interest in growing their local area so it reduces the cost of the scheme and also increases business rates and other revenue.
The CTS scheme will take into account Universal Credit as income and also use the applicable amount used in the calculation of Universal Credit. The rules to do this are in the Council’s CTS scheme rules.
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