High Court to hear Trafford tax challenge

Residents challenge Trafford's tax reduction scheme, claiming it unlawfully impacts low-income households and disabled people

Two residents from Manchester have taken their legal battle against Trafford Metropolitan Borough Council to the High Court over the council's recently-introduced tax reduction scheme. They contend that the new Working Age Local Council Tax Reduction Scheme, which came into effect in April, unlawfully denies crucial support to low-income households, particularly those with disabilities or those caring for disabled individuals. The claimants assert that they were surprised to receive significant increases in their council tax bills due to the scheme, which they argue discriminates against them.

The key issue lies in how the scheme calculates income, specifically by "double counting" benefits aimed at supporting disabled people and carers. This method has resulted in vulnerable groups facing unprecedented council tax payments, when previously they were exempt. The two claimants, who are either disabled or care for disabled individuals, argue that this design is not only irrational but also breaches the Equality Act and the Human Rights Act.

The High Court is set to hear the application for judicial review on 24 and 25 July 2025. The challenge is predicated on two essential grounds. Firstly, the claimants contend that the council did not lawfully adopt the scheme as required by law, since it was decided by the Executive Committee rather than through a full council vote. Secondly, they argue that the means-testing approach employed by the scheme is discriminatory.

Trafford Council has admitted that this flaw negatively impacts nearly a quarter of working-age residents who rely on council tax support, leaving many in a precarious position due to the lack of ongoing assistance. Although some residents have received temporary discretionary relief, the uncertainty surrounding this support creates added anxiety.

The claimants are seeking several outcomes from the court, including the cancellation of the scheme, a declaration that its income calculation is irrational and discriminatory, a requirement for the council to amend the scheme accordingly, and compensation for the distress caused by the flawed system.

Representing the claimants are Carolin Ott and Sarah Crowe, human rights solicitors at Leigh Day, alongside Tom Royston of Garden Court North Chambers and Jack Castle of Henderson Chambers. Commenting on the case, Carolin Ott remarked, “Council tax reduction schemes are a vital lifeline for people on low incomes, including disabled people. Our clients should never have been put in the position of having to fight for a fair system. Trafford Council’s scheme not only appears to have been unlawfully adopted, but it also unfairly penalises those who have done nothing more than receive the benefits to which they are entitled. We hope the Court will find the scheme unlawful and ensure Trafford residents get the support they need and deserve”