This Scheme Means People on Low Incomes Pay Less Council Tax

So, I'm a bit proud of something we've done at F&HDC today. Obviously I'm generally proud of our Council, certainly since 2023, but today is even better.

Today the Cabinet has agreed to put to Council as part of our budget process a change the Council Tax Reduction (CTR) scheme from 1 April 2026.

I know that sounds dull, but its not. This scheme helps people on low incomes pay less Council Tax.

What's changing is that there will be more support for working-age households who need it most.

Pension aged households can already get up to 100% support as a Government policy - we're equalising that for working aged households.

Instead of trying to make everyone pay at least 25% of their council Tax whether they can afford it or not, the most needy households will now get 100% discount. There will also be bigger discounts too for those who have slightly higher incomes. We're also increasing and clarifying the number of benefits and payments that will be disregarded when working out a households income.

I've wanted to do this for years. It's the right thing to do in principle, but pragmatically there is a cost, and we had to be able to justify it. And then this year, due to a mix of things, we could.

In April the Council introduced a second home premium, effectively charging double council tax on unlet second homes. This is in line with other councils across the country, and is allowed by Government as an incentive to increase the supply of first homes available to families locally.

When we introduced the 2nd home premium, we outlined our intent then. In the Council report A23/22 dated 24 January 2024 Section 1.8 we said:

"The Council will also explore using any additional income generated to consider increasing the support offered to low-income households via the Council Tax Reduction Scheme. Any decision will be subject to further consultation and agreement with Kent County Council as the major preceptor."

Plot twist - we meant it. Now we're delivering on that. The additional income of around £310k a year from the second homes scheme just about outweighs the total estimated cost of the improved Council Tax Reduction Scheme of £282k.

But there are other savings.

Until now, to maximise their income from Council Tax Kent County Council have funded collection officers across the county to help support the households that need it most, while trying to collect at least some tax from each of them. But in April, they bizarrely ceased paying for that support - despite being warned then they would lose much more income than they saved in giving that support.

And the way that support was given was that having charged people at least 25% of the council tax bill, with more forms and more time and bureaucracy, households could apply for relief on that remaining payment. So where we're now not charging them Council Tax (or as much) the awards for that support will be much lower, the admin time and cost to the Council lower, and the stress and pressure on those households reduced.

We're not the only Kent Council making this move - pretty much all districts across Kent are looking at making the same change, for the same reasons. But we're pretty much first, and proud of that. And I only get to move this proposal: the leg work has been done by our officers, principally Andrew Hatcher and Alan Mitchell who have supported getting this done throughout, gone through consultation, prepared papers, done the costings and made it happen.

A good day for our Council, and a key step towards the next budget in February 2026.