Changes to our Council Tax Reduction Scheme from April 2026

Ashford Borough Council has reviewed its Council Tax Reduction scheme following a public consultation in September 2025 and following approval from Members during a Full Council meeting held on 26 February.

The existing scheme for Council Tax Reduction (CTR) has been in place since 2020, however changes to the scheme coming into effect from 1 April 2026 will provide additional support to the lowest income and most vulnerable households, following the removal of an incentive grant from Kent County Council in April 2025.

From April 2026, the council will increase the maximum level of support available to all low income working age households to 90%, which is an increase from the 80% currently offered. 

The changes will also include aligning the Working Age Scheme and the Vulnerable Scheme into the same income grid based on the claimant and partner’s circumstances only. 

The new scheme will take into account the Department for Work & Pensions (DWP) “Move to Universal Credit (UC)” programme which should near completion in March/April 2026.  

Currently our CTR scheme does not allow for the disregard of the various elements of UC attributable to disability or caring responsibilities. This has meant that residents previously in receipt of Employment and Support Allowance, receiving a maximum level of support, have moved over to UC and have seen a drop in their CTR support.  

The new CTR scheme will disregard some UC elements, such as UC Limited Capability for Work (LCW) Element, UC Transitional Protection, UC Disabled Child Element and UC Carer Element whilst disregarding children and all income and allowances in respect of the children.

Under the Council Tax Reduction provisions, the scheme for pensioners is determined by Central Government and therefore out of scope for change by the council. Pensioners in receipt of CTR will be unaffected by any changes to the working age CTR scheme.

Noel Ovenden, Leader of the Council and Cabinet Member for Finance and Resource (with Special Responsibility for Housing and Homelessness), said: “We are required to adopt a Council Tax Reduction (CTR) scheme for 2026/27, and the reviewed changes are necessary due to the withdrawal of Kent County Council administration funding, the completion of the Government’s move to Universal Credit, and the need to ensure the scheme remains fair, affordable, and fit for purpose.

“The proposed scheme aligns the current standard and vulnerable working-age schemes into a single, simpler framework. It corrects anomalies created by Universal Credit by disregarding income elements linked to disability and caring responsibilities and removes child-related income from the means test, supporting the council’s wider objectives around fairness and tackling child poverty.

“Having considered the consultation feedback, financial implications, and equalities impacts, I support the recommendation to adopt a maximum award of 90%. This option provides improved support to the majority of claimants, simplifies administration, and balances compassion with fairness to the wider taxpayer. 

“Importantly, I’m pleased that safeguards remain in place through our Exceptional Circumstances Scheme for households facing genuine hardship as a result of change."

For more information, FAQs on our Council Tax Reduction scheme and the changes from April 2026 visit our dedicated Council Tax Reduction scheme web page.