Victory for Trafford residents as High Court rules council tax reduction scheme unlawful

In a final judgment handed down Friday 19 September 2025, the High Court found that Trafford Council’s new Working Age Local Council Tax Reduction Scheme for 2025/2026 was both unlawfully adopted and discriminatory against disabled people and carers receiving certain benefits.

Both claimants, who are disabled or caring for a disabled person, were unexpectedly hit with large council tax bills this year with the introduction of the scheme in April 2025. As a result, vulnerable and disabled people receiving certain benefits faced the prospect of paying hundreds of pounds in council tax, when under the previous year’s scheme, they did not have to pay any council tax at all.

The council had previously acknowledged that the flaw leaves nearly a quarter of working-age council tax support claimants worse off. Though some residents were granted short-term discretionary relief, many continued to receive no support under the main scheme and were therefore at risk of discretionary relief being denied.

Today’s judgment comes after a High Court hearing on 24 and 25 July 2025.

The claimants’ judicial review challenge centred on two key grounds:

1. Unlawful adoption: The council never lawfully approved the scheme through a vote of the full council, as required by law. Instead, the decision was improperly taken by the Executive Committee in December 2024.
2. Discriminatory design: The scheme’s means test unfairly “double counted” certain income, such as carer benefits and occupational pensions, already considered when calculating Universal Credit awards. This meant many disabled people and carers were wrongly treated as better off than they were and denied support.

In its judgment, the court held that Trafford Council had failed to approve the scheme through the proper legal process – bypassing the full council vote required by law – and that the way the scheme treated disabled people and carers in receipt of certain benefits was discriminatory.  

The court ruled that:

1. The scheme must be quashed, because it was not lawfully adopted. This means that the previous year’s scheme will operate instead.  
2. The method of calculating income was irrational and discriminatory, unlawfully penalising disabled people and carers.  
3. The claimants are entitled to compensation for the harm they suffered under the unlawful scheme.

The claimants now expect that Trafford Council will revisit the scheme to address the issues identified by the court in planning for any future scheme, so that people are not wrongly denied council tax support in the future.

The claimants are represented by Carolin Ott and Sarah Crowe, human rights solicitors at Leigh Day, along with Tom Royston of Garden Court North Chambers and Jack Castle of Henderson Chambers.

One of the claimants said:

“This decision is such a relief. I brought this case because I knew how unfair the scheme was – not just for me, but for many others in Trafford who were suddenly being asked to pay money they simply didn’t have. The court has now agreed that the scheme was both unlawful and discriminatory. I hope the council takes this on board and puts in place a fair scheme that protects people instead of pushing them into hardship. I also hope that the council reinstates its welfare advice line and ensures that people who need council tax support know where to turn when they are denied support.”

Carolin Ott said:

“This is a hugely important victory for our clients and for other Trafford residents who were wrongly deprived of support. The High Court has confirmed not only that the council adopted this scheme unlawfully, but also that it discriminated against disabled people and carers receiving certain benefits. Local authorities should protect their most vulnerable residents, and this judgment makes clear that Trafford Council failed to do so. The council must go back to the drawing board and ensure that a lawful and fair scheme is put in place.”