header-logo header-logo

24 September 2025
Issue: 8132 / Categories: Legal News , Human rights , Tax , Local authority , Discrimination
printer mail-detail

Tax scheme was irrational & discriminatory, court rules

A local authority council tax scheme ‘double counted’ a disability pension and carer’s allowance, the High Court has held

R (on the application of LL & AU) v Trafford Metropolitan Borough Council [2025] EWHC 2380 (Admin) concerned Trafford Council’s working age local council tax reduction scheme for the current tax year. Claimants LL and AU previously received a 100% reduction on their council tax, but in March they were each billed for the full amount.

They argued, first, the scheme was unlawfully adopted as the decision was taken by the executive committee rather than the full council. Second, its design was discriminatory since the means test ‘double counted’ certain benefits and pensions. LL’s private occupational pension and AU’s carer’s allowance reduced their actual income from universal credit but increased their deemed income under Trafford Council’s system.

Trafford Council accepted their system had flaws but attributed this to the software it used. While it had requested an amendment to the software, it was dealing with the issue by granting discretionary relief where necessary.

The claimants rejected the argument that only the software was flawed, and contended the issues were inherent in the scheme itself. Moreover, many residents were at risk of discretionary relief being denied.

Quashing the scheme and ordering the claimants be compensated, Judge Pearce said: ‘A scheme which requires the exercise of discretionary support is not sufficient to rescue it from a finding of irrationality.’

Judge Pearce noted that, to receive discretionary support, ‘a person has to make application to a potentially limited fund that makes usually short-term award payments and from which application there is no right of appeal’.

Carolin Ott, senior associate at Leigh Day, representing the claimants, said: ‘The council must go back to the drawing board and ensure that a lawful and fair scheme is put in place.’

MOVERS & SHAKERS

WSP Solicitors—David Ashcroft & Jessica O’Shea

WSP Solicitors—David Ashcroft & Jessica O’Shea

Commercial property and child law teams expand with senior hires

Duxton Hill Chambers—Lucas Bastin KC & Joshua Hiew

Duxton Hill Chambers—Lucas Bastin KC & Joshua Hiew

Set expands London and Singapore offering with senior international disputes hires

Gilson Gray—Gregor Duthie & Stephen Forsyth

Gilson Gray—Gregor Duthie & Stephen Forsyth

Firm strengthens real estate and litigation teams with partner promotions

NEWS
Behind the profession’s polished exterior, lawyers are ‘internally drained rather than physically tired’, according to a stark assessment of burnout in legal practice
Five years after the Domestic Abuse Act 2021 came into force, concerns remain that the family courts continue to minimise allegations of abuse in child contact disputes
Uber has built a formidable strategy for insulating itself from liability for drivers’ conduct, but the legal terrain differs sharply between the US and England and Wales
The House of Lords (Hereditary Peers) Act 2026 marks a constitutional watershed by severing the centuries-old link between hereditary titles and automatic membership of the upper chamber
The Civil Justice Council’s review of Part III of the Solicitors Act 1974 could mark the end of what one commentator calls an ‘outdated’ and overly technical regime governing solicitor-client fee disputes
back-to-top-scroll