🐝 A note before you start:
Student status, tenancy arrangements,
Council Tax liability and entitlement to benefits can interact in complicated
ways. The rules can also change. This article explains the principles, but it
isn't a substitute for checking your own circumstances. If you're unsure who is
liable for a bill or whether you are entitled to help, seek advice before
paying or claiming.
Students, Council Tax and Rent
When students share a property with a
non-student, people have framed the question of who pays what as a "moral
dilemma" should the student perhaps chip in for a bill they are not actually
liable for? Should the non-student share benefit income they receive to help
cover a student's share?
We think this is the wrong starting point.
So let's put some context on the matter of rent, Council Tax and entitlement to
welfare benefits for these expenses.
As you know, Levitate is all about Rights
and Responsibilities, and it's important to understand them.
So let's start with…
Rent
What is rent? Rent is a payment (of money
or other means as agreed) to use a property.
What is included in the rent depends on the
tenancy agreement, whether that is in writing or a verbal agreement.
For detailed information about rent and
tenancy agreements, we recommend the charity Shelter.
Help to pay rent
Universal Credit ~ The housing element
helps low-income or unemployed working-age people to pay their rent.
Housing Benefit ~ new claims are generally limited to people who have reached State Pension age or people living in certain types of supported or temporary accommodation. There are detailed rules and exceptions. Universal Credit has largely replaced Housing Benefit for working-age renters.
Most full-time Higher Education students
are not entitled to claim means-tested welfare benefits. There are some exceptions, for
example some lone parents, student couples with children and some disabled
students, who may be eligible for help towards their rent (seek advice).
The rules can be complicated, particularly
where a student shares accommodation with someone who is not a student, so it
is worth getting advice about individual circumstances.
A non-student living in a shared property
with students could apply for help to pay their rent liability if they are not
working or are on a low income.
If the non-student is entitled to financial
help with their own housing costs, that is their entitlement. It doesn't become
money belonging to their student housemates.
All the tenants have a Responsibility to
pay their rent, but it could be that only the non-student has the Right to
claim welfare benefits to help towards their share of the rent.
Council Tax
Council Tax is a local tax charged on
domestic properties. The amount charged depends on the property's valuation
band and the local authority's Council Tax rate.
The local authority decides what charge
applies to each Council Tax band. The local authority will also outline to
residents what it has spent the Council Tax on each year. Local authority
websites are often a good source of information about Council Tax.
Crucially, full-time students are normally disregarded for Council Tax purposes. This doesn't necessarily mean a student can never be legally liable for a Council Tax bill though. Generally, a property occupied only by full-time students is exempt from Council Tax.
Universities issue students with Council Tax Exemption Certificates or tell students how to inform the local authority that they are exempt. Where students live in university accomodation, excemption is usually automatic and the university manage the relationship with the local authority. Check the university/college website for information.
Help to pay Council Tax
Local authorities are responsible for
running their own Council Tax Support schemes to help people on low income with
their Council Tax bills. Again, local authority websites are a useful source of
information. The schemes vary across local authority areas and can change from
year to year.
Student income may be considered low and
therefore on the maths alone, many could be eligible for Council Tax Support.
The government make it easier though by making most full-time students exempt
from paying Council Tax, so less hassle all round.
But being a student does not, in every circumstance, mean that a person can never be legally liable for Council Tax.
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| Full-time HE Students and Council Tax, who has to pay in the household? (Made with AI) |
🐝 When students live with non-students (or even a part-time student), the residence is not exempt, so someone will be liable for the Council Tax. If there is only one person who counts for Council Tax purposes and everyone else is disregarded for example, because they are full-time students the bill will normally be reduced by 25% and, if their income is low may receive help to pay in the form of Council Tax Support.
🐝 If the non-student is also exempt
from paying Council Tax for other reasons, the discount on the bill would be
50%. Who would be liable to pay the bill can be complex and depends on a
hierarchy of liability so seek advice if you are not sure.
🐝 A student may have to pay the
Council Tax even though they are disregarded when calculating the discount for
the bill. This can happen to a student who is the only tenant or who owns their
own home but lives with an adult who is not a student.
For example, a mum who is a full-time
student and owns her own home, whose adult (not in education) son lives at home
with her: the property is not exempt, mum as a full-time student is disregarded
so the bill is discounted by 25%, but as she is the owner-occupier, she is
liable for the bill. We would agree that in these circumstances there is a bit
of a moral dilemma regarding the son helping mum out with the bills.
A financially capable approach
From a financially capable perspective, we
would recommend that you don't pay bills you are not liable for, there is no moral dilemma here. If you are
unsure about whether or not you are liable for a bill, then always seek advice
from your University Money Adviser or community advice such as Citizens Advice.
Sources & further information
For current information about Council Tax,
benefits and tenancy matters, check GOV.UK, your local authority, Turn2Us, Money Helper, Shelter and
Citizens Advice. The rules can change, and individual circumstances can affect
entitlement and liability.
