Council Tax Reduction Scheme 26/27 Consultation

Ashford Borough Council is reviewing its Council Tax Reduction (CTR) scheme – The existing scheme for CTR has existed in its current form since 1 April 2020. Details of the current scheme can be found here.

Have your say

We want to hear your views to ensure that any changes to the scheme are fair, transparent, and meets the needs of our community. A public consultation will be available through our dedicated consultation portal on 19 September, allowing you to have your say until 31 October 2025.

Background

The CTR scheme provides support for certain taxpayers who have a low income. Where entitled, the scheme provides a reduction in liability for Council Tax.

Under the CTR provisions, the scheme for pensioners is determined by central government and the scheme for working age applicants is determined by the us. Pensioners are therefore unaffected by any of the proposals.

Why review the CTR Scheme?

When the scheme was first introduced we received incentive funding for the administration of the scheme from Kent County Council. From April 2025 this has now ceased. The 80% and 90% discount rates were introduced to collect the funds in accordance with this incentive funding. This varied throughout Kent with other districts and boroughs having schemes that operated on different levels of support (higher and lower) and receiving funding appropriate to the additional work required depending on the support offered. Ashford is the only authority in Kent with a separate Vulnerable Scheme.

The current scheme doesn’t allow the various elements of Universal Credit that are awarded in respect of disability/carers to be disregarded.

There is a disparity between the vulnerable and working age schemes.

The indications are that most Kent boroughs and districts will now look to consult on changing the levels of support within their schemes in response to the removal of incentive funding.

Any proposed significant changes to the scheme will require a full public consultation and agreement at a Full Council meeting by 11 March 2026.

Collection of Council Tax from the lowest income households can be more difficult as the cost of living continues to rise.

Proposed changes for consultation

Proposal 1

Align the Working Age Scheme and the Vulnerable Scheme into the same income grid. Disregard some UC elements, such as UC Limited Capability for Work (LCW) Element, UC Transitional Protection, UC Disabled Child Element and UC Carer Element (with a maximum level of support of 90% or 100%).

Proposed New Income Grid - Option 1
Bands	Band 1 (90%/100% discount)	Band 2 (75%/85% discount)	Band 3 (60%/70% discount)	Band 4 (45%/55% discount)	Band 5 (30%/40% discount)
Single	£0.00 - £122.10	£122.11 - £183.15	£183.16 - £244.20	£244.21 – £305.25	£305.26 – £366.30
Couple	£0.00 – £162.10	£162.11 – £223.15	£223.16 – £284.20	£284.21 – £345.25	£345.26 – £406.30
Lone parent with 1 child	£0.00 – £177.10	£177.11 – £238.15	£238.16 – £299.20	£299.21 – £360.25	£360.26 – £421.30
Couple with 1 child	£0.00 – £217.10	£217.11 – £278.15	£278.16 – £339.20	£339.21 – £400.25	£400.26 – £461.30
Lone parent with 2 or more children	£0.00 – £232.10	£232.11 – £293.15	£293.16 – £354.20	£354.21 – £415.25	£415.26 – £476.30
Couple with 2 or more children	£0.00 – £272.10	£272.11 – £333.15	£333.16 – £394.20	£394.21 – £455.25	£455.26 – £516.30

Proposal 2

Align the Working Age Scheme and the Vulnerable Scheme into the same income grid based on the claimant and partner's circumstances only. Disregard some UC elements, such as UC Limited Capability for Work (LCW) Element, UC Transitional Protection, UC Disabled Child Element and UC Carer Element. In addition, we would also disregard children and all income and allowances in respect of the children. (with a maximum level of support of 90% or 100%).

Proposed New Income Grid - Option 2
Bands	Band 1 (90%/100% discount)	Band 2 (75%/85% discount)	Band 3 (60%/70% discount)	Band 4 (45%/55% discount)	Band 5 (30%/40% discount)
Single	£0.00 - £122.10	£122.11 - £183.15	£183.16 - £244.20	£244.21 – £305.25	£305.26 – £366.30
Couple	£0.00 – £162.10	£162.11 – £223.15	£223.16 – £284.20	£284.21 – £345.25	£345.26 – £406.30

Safety net

Our Exceptional Circumstances Payment (ECP) scheme will remain the same to help those who need it or who are affected by any change in the scheme. More information on ECPs and how residents can apply can be found here.

FAQs

+ Will the new CTR scheme proposals be funded from my Council Tax?

No, this will cost the council more, but it will not impact the amount charged to tax payers

+ Why are only working age residents affected by the changes?

Each year, we are required to review our Council Tax Reduction (CTR) scheme ahead of the new financial year. Pensioners who claim support will remain unaffected by any changes, as the government mandates that they must be protected from reductions in the level of assistance they receive.

+ How will the proposed changes affect me?

We have compiled some case studies to show how different households will be affected by the proposed changes. Visit our dedicated case studies web page to see these examples.

We also have a consultation calculator that can assist you with understanding the proposed changes.

+ Why is the council proposing to align the Vulnerable Scheme with the Working Age Scheme (by increasing the Working Age Scheme to 90% or 100%?)

We want to reduce the financial burden on our low income residents by increasing the maximum level of support for working age applicants from 80% to 90%/100% across the board.

+ Why is the council proposing to move their vulnerable applicants into a banded scheme based on their household composition?

We wish to create a simpler and fairer scheme. This change will also align with other local authorities in Kent.

+ What is the benefit in disregarding the various elements in Universal Credit (Limited Capability for work, Disabled Child Element, Carers Element and Transitional Protection?)

Our current scheme was established before Universal Credit was widely introduced. At that time, many claimants received “passported” benefits - such as Jobseeker’s Allowance, Employment and Support Allowance, or Income Support - which automatically entitled them to the maximum level of Council Tax Reduction. However, Universal Credit is not a passported benefit, so all income (except the Housing Element) is taken into account when calculating support. As a result, individuals who moved from a passported benefit to Universal Credit often receive less Council Tax Reduction. By disregarding certain components of Universal Credit, we can ensure these individuals receive a similar level of support they would have under the previous system.

+ What happens if no changes are made to the scheme?

The level of support will remain the same across both schemes, meaning the maximum support for working age residents will stay at 80% and the maximum support for vulnerable residents will stay at 90%. However, by April 2026, working age CTR recipients will all have moved over to Universal Credit from the legacy benefits (Job Seekers Allowance Income Based, Employment and Support Allowance Income Related and Income Support). Our current scheme does not allow for the disregards of the various different elements of Universal Credit (Limited Capability for Work, Disabled Child Element, Carers Element and Transitional Protection) – this means when they are moved over to Universal Credit, they will receive less CTR as their assessed income is too high.

+ What is the benefit in disregarding any income or allowances relating to children and only having two schemes, one for single people and one for couples?

To simplify the Council Tax Reduction scheme and make it easier for residents to understand.

+ What can I do if my new Council Tax reduction entitlement is much less than it was previously?

If you are unable to pay your Council Tax, you can apply for an Exceptional Circumstances Payment. Details can be found on our website. You can also request an explanation of the calculation by emailing benefits@ashford.gov.uk.

We have two welfare intervention officers who can offer benefits advice – more information can be found on our dedicated welfare intervention officers web page.

+ What can I do if I want an explanation of how my Council Tax Reduction has been calculated?

You can write to us or email benefits@ashford.gov.uk and ask for an explanation of how your Council Tax Reduction has been calculated.

+ What do I do if you have calculated my claim incorrectly?

You can write to us or email benefits@ashford.gov.uk, giving details of the information that is incorrect, and we will look at your claim again.

+ What can I do if I disagree with my Council Tax reduction calculation?

You can write to us or email benefits@ashford.gov.uk, giving details of why you disagree with the calculation, and we will look at your claim again. If your claim remains unchanged and you still disagree with the decision you can appeal. You must do this in writing or via email and send it directly to the Valuation Tribunal. More details on how to appeal can be found on our website.