Council Tax Reduction Scheme

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Why we are consulting?

Each year Maidstone Borough Council must decide whether to change the Council Tax Reduction scheme for working age applicants in its area with Pension Age applicants seeing no changes as they are part of the national scheme. This year the Council is deciding whether to significantly change the working age Council Tax Reduction Scheme to:

  • Provide targeted support to those households on the lowest incomes
  • To increase the level of support to those households on the lowest incomes
  • Reduce administration costs which will ultimately prevent any additional costs being added to the Council Tax.

What is Council Tax Reduction?

Council Tax Reduction is a discount for Council Tax. The level of discount is based on the income of the household. Currently the maximum discount for Pension age households is 100% and for working age households 80% of Council Tax.

The Council can only make changes to the working age scheme as the Council Tax Reduction scheme for pensioners is prescribed by Government.

Why is a change to the Council Tax Reduction scheme being considered?

Councils are required to review their schemes each year and decide if they want to make any changes. Before any changes can be implemented, they must be subject to public consultation.

Maidstone Borough Council is proposing a number of changes to its existing scheme.

The Council operates a banded scheme for working age claimants based on earnings. Those who do not work receive support under Band 1. Those who are working receive support under Band 2 to Band 5.

The Council is consulting on the following changes to its scheme for 2026/27 (more detail on the change proposals is given further in the consultation):

  • Increasing the maximum level of support to 90% or 100% in Band 1
  • Increasing the maximum level of support for those claimants in Bands 2 - 5
  • Removing the minimum income floor
  • The inclusion or exclusion of income from further compensations in the calculation of Council Tax Reduction.

All other parts of the existing scheme will remain unchanged including:

  • The scheme will continue to limit the number of dependent children used in the calculation of support for all working age applicants to provide consistency with the Department for Work and Pensions benefit schemes;
  • Disability Benefits such as Personal Independence Payment (PIP) and Disability Living Allowance (DLA) and Carers Allowance will continue to be disregarded;
  • War Pensions and War Disablement Pensions will continue to be disregarded in full; and
  • The maximum capital limit will remain at £10,000.

In the Maidstone Borough Council area, almost 10,000 people currently receive Council Tax Reduction. The gross cost of the scheme is £11.5m which is spread across the County Council (72%), the Borough Council (13%), Fire (4%) and Police (11%) in accordance with the proportion of Council Tax which each organisation levies.

Who will this affect?

  • Working age households in the Maidstone Borough Council area who currently receive or will apply for Council Tax Reduction.
  • Pension age households will not be affected as Central Government prescribes their scheme.

Are there any alternatives to changing the existing Council Tax Reduction Scheme?

We have thought about other options. These have not been completely rejected (including maintaining the current scheme) and you are asked about them in the questionnaire, but, at the moment we do not think we should implement them for the reasons given.

We have considered:

Continuing with the current scheme

The Council Tax Reduction Scheme is determined locally by District Councils rather than the Department of Work and Pensions. Although the Government initially provided funding for the scheme, the funding has reduced each year in line with the reduction in Revenue Support Grant provided to councils. From 2019 this funding was removed. Funding was also provided by Kent County Council, Kent Police and Kent Fire and Rescue towards the administration of the working Age Council Tax Reduction scheme, this was removed from April 2025.

This funding was used towards the administration of claims and the collection of Council Tax. The amount of Council Tax charged has increased since the scheme commenced in 2013. It will cause difficulties to continue with the current scheme if the County, Police and Fire Service are not going to continue to provide a grant towards the cost of administrating the scheme.

Reduce funding to other Council services to pay for additional administration costs

Keeping the current Council Tax Reduction scheme will mean an increase in administration costs for Maidstone Borough Council and less money available to deliver other Council services.

Or use the Council’s reserves to keep the Council Tax Reduction scheme. Using reserves to fund the additional administration costs would be a short-term option. Once used they will no longer be available to support and invest in other Council services and additional cuts would have to be made in the following years.

How to get involved

Survey - click here to start the survey(External link)(External link)

  • Survey closes: 28 September 2025
  • Survey takes 3-6 minutes to complete.

What Next

Recommendations on the Council Tax Reduction Scheme for 2026/27 will be considered by Cabinet in December 2025.

Why we are consulting?

Each year Maidstone Borough Council must decide whether to change the Council Tax Reduction scheme for working age applicants in its area with Pension Age applicants seeing no changes as they are part of the national scheme. This year the Council is deciding whether to significantly change the working age Council Tax Reduction Scheme to:

  • Provide targeted support to those households on the lowest incomes
  • To increase the level of support to those households on the lowest incomes
  • Reduce administration costs which will ultimately prevent any additional costs being added to the Council Tax.

What is Council Tax Reduction?

Council Tax Reduction is a discount for Council Tax. The level of discount is based on the income of the household. Currently the maximum discount for Pension age households is 100% and for working age households 80% of Council Tax.

The Council can only make changes to the working age scheme as the Council Tax Reduction scheme for pensioners is prescribed by Government.

Why is a change to the Council Tax Reduction scheme being considered?

Councils are required to review their schemes each year and decide if they want to make any changes. Before any changes can be implemented, they must be subject to public consultation.

Maidstone Borough Council is proposing a number of changes to its existing scheme.

The Council operates a banded scheme for working age claimants based on earnings. Those who do not work receive support under Band 1. Those who are working receive support under Band 2 to Band 5.

The Council is consulting on the following changes to its scheme for 2026/27 (more detail on the change proposals is given further in the consultation):

  • Increasing the maximum level of support to 90% or 100% in Band 1
  • Increasing the maximum level of support for those claimants in Bands 2 - 5
  • Removing the minimum income floor
  • The inclusion or exclusion of income from further compensations in the calculation of Council Tax Reduction.

All other parts of the existing scheme will remain unchanged including:

  • The scheme will continue to limit the number of dependent children used in the calculation of support for all working age applicants to provide consistency with the Department for Work and Pensions benefit schemes;
  • Disability Benefits such as Personal Independence Payment (PIP) and Disability Living Allowance (DLA) and Carers Allowance will continue to be disregarded;
  • War Pensions and War Disablement Pensions will continue to be disregarded in full; and
  • The maximum capital limit will remain at £10,000.

In the Maidstone Borough Council area, almost 10,000 people currently receive Council Tax Reduction. The gross cost of the scheme is £11.5m which is spread across the County Council (72%), the Borough Council (13%), Fire (4%) and Police (11%) in accordance with the proportion of Council Tax which each organisation levies.

Who will this affect?

  • Working age households in the Maidstone Borough Council area who currently receive or will apply for Council Tax Reduction.
  • Pension age households will not be affected as Central Government prescribes their scheme.

Are there any alternatives to changing the existing Council Tax Reduction Scheme?

We have thought about other options. These have not been completely rejected (including maintaining the current scheme) and you are asked about them in the questionnaire, but, at the moment we do not think we should implement them for the reasons given.

We have considered:

Continuing with the current scheme

The Council Tax Reduction Scheme is determined locally by District Councils rather than the Department of Work and Pensions. Although the Government initially provided funding for the scheme, the funding has reduced each year in line with the reduction in Revenue Support Grant provided to councils. From 2019 this funding was removed. Funding was also provided by Kent County Council, Kent Police and Kent Fire and Rescue towards the administration of the working Age Council Tax Reduction scheme, this was removed from April 2025.

This funding was used towards the administration of claims and the collection of Council Tax. The amount of Council Tax charged has increased since the scheme commenced in 2013. It will cause difficulties to continue with the current scheme if the County, Police and Fire Service are not going to continue to provide a grant towards the cost of administrating the scheme.

Reduce funding to other Council services to pay for additional administration costs

Keeping the current Council Tax Reduction scheme will mean an increase in administration costs for Maidstone Borough Council and less money available to deliver other Council services.

Or use the Council’s reserves to keep the Council Tax Reduction scheme. Using reserves to fund the additional administration costs would be a short-term option. Once used they will no longer be available to support and invest in other Council services and additional cuts would have to be made in the following years.

How to get involved

Survey - click here to start the survey(External link)(External link)

  • Survey closes: 28 September 2025
  • Survey takes 3-6 minutes to complete.

What Next

Recommendations on the Council Tax Reduction Scheme for 2026/27 will be considered by Cabinet in December 2025.

  • Survey

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    Click here to start the survey(External link)

    Survey closes: 28 September 2025

    Survey takes: 3-6 minutes.

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Page published: 01 Aug 2025, 12:30 PM