Consultation on proposed changes to Council Tax Reduction Scheme from April 2026

Ashford Borough Council is reviewing its Council Tax Reduction scheme with the existing scheme for Council Tax Reduction (CTR) having existed in its current form since 1 April 2020. 

Following a Cabinet meeting held on 11 September, it was agreed by Members that a public consultation on the proposed changes will take place starting from Friday 19 September to Friday 31 October 2025.

What is the Council Tax Reduction Scheme?

The Council Tax Reduction 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 Council Tax Reduction provisions, the scheme for pensioners is determined by central government and the scheme for working age applicants is determined by the council. Our pensioner residents are therefore unaffected by any proposed changes. 

Why does the current scheme need to be changed?

Collection of Council Tax from the lowest income households can be more difficult due to the limited funds available to those households. As household bills continue to rise, it is only right to review the level of support available to some of the lowest income families. 

Ashford is the only council in Kent to offer a more generous vulnerable scheme that is available for disabled and carer households. Rather than decrease support to working age residents, we would like to consider raising the level of support for those not in receipt of disability or carer benefits, to that of a similar level of residents in the Vulnerable Scheme. 

As Universal Credit rolled out, year on year, more complex families were moved over to Universal Credit. As a result, more elements appear in the Universal Credit calculation such as the limited capability for work element, disabled child element and carers element.

The current CTR scheme does not allow these various Universal Credit elements to be disregarded when calculating a household’s income. This consultation looks to address that issue, as all residents will have moved over to Universal Credit by April 2026.

Proposed changes

Several options are being considered, and include; increasing the maximum level of support available to all low income working age households to 90%, or 100%; disregarding the various disabled and carer elements of Universal Credit when calculating household income; aligning the Working Age Scheme and the Vulnerable Scheme into one seamless banded system, dependant on household make up.  

All suggested changes will continue to protect our disabled/ carer households by continuing to disregard all disability and carer income such as Disability Living Allowance, Personal Independence Payment, Attendance Allowance and Carers Allowance.

No decisions have been made yet however and full consideration will be given to the results of the public consultation.  

Noel Ovenden, Leader of the Council and Cabinet Member for Finance and Resource (with Special Responsibility for Housing and Homelessness), said: “I support that we are looking to consult on the creation of a simpler and fairer scheme in response to the removal of the KCC incentive grant.

“This scheme will align to other districts across the county and prepare us for Local Government Reorganisation. I'm pleased that there will continue to be an Exceptional Circumstances Fund for those that are negatively impacted by the scheme.”

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. The consultation will be available through a dedicated consultation portal starting on 19 September and running through to 31 October 2025.

More information on the proposed changes is available on our dedicated council tax reduction consultation web page and general information on our current Council Tax Reduction scheme can be found online.