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Policy and Resources

24 November 2021


Council Tax Reduction Scheme 2022-2023


Final Decision-Maker


Lead Head of Service

Stephen McGinnes, Director Mid Kent Services

Lead Officer and Report Author

Sheila Coburn, Head of Mid Kent Revenues and Benefits



Wards affected



Executive Summary

1.1   Each year Full Council has to approve the Council Tax Reduction Scheme for

   the following year.


1.2     Were changes to be proposed, it would be necessary for a public consultation to take place. A decision needs to allow time for this step if necessary.


1.3   This report makes a recommendation on the scheme to be implemented for



Purpose of Report


To recommend no changes are made to the current Council Tax Reduction Scheme. For Council to adopt the Council Tax Reduction Scheme for 2022-23.



This report makes the following recommendations to this Committee:

1.   That Policy & Resources Committee notes the progress of the inaugural year of the income banded Council Tax Reduction Scheme.

2.   That the Committee recommends to Council that no changes are made to the Council Tax Reduction Scheme for 2022-2023 for the reasons stated in this report.







Corporate Leadership Team

5 October 2021

Policy and Resources Committee

24 November 2021


8 December 2021

Council Tax Reduction Scheme 2022-2023








Impact on Corporate Priorities

We do not expect the recommendations will by themselves materially affect achievement of corporate priorities. The Council needs to balance the needs of low-income households with the wider interest of local taxpayers to ensure that vulnerable residents are protected whilst providing a scheme that is affordable.

Sheila Coburn, Head of Mid Kent Revenues and Benefits Partnership

Cross Cutting Objectives

The report recommendations support the achievement of Deprivation and Social Mobility.



Sheila Coburn, Head of Mid Kent Revenues and Benefits Partnership

Risk Management

Refer to Paragraph 6 of this report

Sheila Coburn, Head of Mid Kent Revenues and Benefits Partnership


CTR reduces the amount of Council Tax that can be collected. The total cost of the scheme is met by the Council and preceptors.


Maxine Mahon,  Finance Team


No impact

Sheila Coburn, Head of Mid Kent Revenues and Benefits Partnership


Section 13A of the Local Government Finance Act 1992 requires the Council to adopt a Council Tax Reduction Scheme. Schedule 1A of the Act requires the Council to consider whether to revise or replace its scheme for each year. If there are changes proposed for the 2022-2023 scheme the Act contains a statutory duty to consult on a proposed scheme, with guiding principles for fair consultation set out in case law.  

Consideration must be given to the findings of the consultation and equality impact assessment in reaching a decision. At this stage there are no direct consequences arising from the recommendation that adversely affect individuals rights and freedoms as set out in the Human Rights Act 1998. Potentially consequences could arise in the future implementation of the Scheme that would need to be evaluated at the time

Jayne Bolas, Mid Kent Legal Services

Privacy and Data Protection

The data will be held and processed in accordance with the data protection principles contained in Schedule 1 to the Data Protection Act 1998.

Policy and Information Team


An Equalities Impact Assessment is not required as no changes are proposed to the scheme.  However, a further Equalities Impact Assessment will be carried out as part of a wider review of the Scheme.

Senior Policy and Equalities Officer

Public Health



No impact


Sheila Coburn, Head of Mid Kent Revenues and Benefits Partnership

Crime and Disorder

No impact


Sheila Coburn, Head of Mid Kent Revenues and Benefits Partnership


No impact

Sheila Coburn, Head of Mid Kent Revenues and Benefits Partnership

Biodiversity and Climate Change

There are no implications on biodiversity and climate change.


Biodiversity and Climate Change Manager





3.1      The Council Tax Reduction Scheme (CTRS) was introduced in April 2013 as  

 a replacement for Council Tax Benefit (CTB), a national scheme  

 administered on behalf of the Department for Works and Pensions (DWP).


3.2      Each year the scheme must be approved by Full Council.


3.3      Any changes to the scheme for any year have to go for public consultation   

 before being approved.


3.4    Since its introduction in April 2013, our local scheme has been ‘refreshed’

    annually for general changes in applicable amounts (primarily in relation to

    disability premiums) and taking into account the introduction of Universal



3.5      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.


3.6      Council Tax Reduction provides financial assistance in the form of a rebate

 on the Council Tax bill and this generally reduced over recent years before  

 the COVID pandemic.


 2016/2017                £10,679,971


  2017/2018                £10,264,000


  2018/2019                £ 9,058,176


  2019/2020                £ 8,652,758


2020/2021                £ 9,499,392


2021/2022                £ 9,945,451  (estimated)


3.7    The introduction of Universal Credit Full Service (UCFS) on 21 November

    2018 brought a number of challenges to both the administration of Council

    Tax Reduction and also the collection of Council Tax.


3.8    The number of changes that customers have to Universal Credit meant

         there were constant amendments to Council Tax liability, meaning re-

         calculation of instalments, delays and the re-issuing of Council Tax bills.


3.9    From April 2021, a new income banded scheme was introduced which has

         an in-built, simplified claiming process with wide income ranges.


3.10   As with the previous scheme, working-age applicants, irrespective of their

         financial circumstances, are required to pay a minimum of 20% towards

         their Council Tax liability.


3.11   The new banded scheme means that frequent liability changes have been

         avoided, and revised bills are only being issued where income crosses into

         another earnings band.


3.12   This has made it less cumbersome for customers and has allowed us to

         convey a relatively simple eligibility message to residents.


3.13   Feedback from the Customer Services team and Citizens Advice has been

          positive with fewer enquiries being made about eligibility and

          understanding of the income banded scheme.



3.14   Table 1 shows the income banded scheme for households with no children,

         1-2 children and 3 plus children:


         Table 1



                     Household size and earnings


Maximum Award

                  No children

1-2 children

3+ children

Band 1

Passported/ max UC

Passported/ max UC

Passported/ max UC


Band 2

Less than £316

Less than £387

Less than £441


Band 3





Band 4





Band 5






3.15   Passported in the table refers to legacy benefits (job seekers allowance,

         Income support, employment support allowance) for customers who have

         not migrated to Universal Credit.







4.1    Option 1 – maintain current scheme. The new income banded scheme has

         so far been successful but is still in its first year. To consider introducing  

         any amendments to the scheme whilst not having completed a full year

         would not be advisable.


4.2    Option 2 – revise the current scheme.  Any revisions to the scheme would

         at this stage be limited, difficult to identify and implement at this early

         stage of not having completed a full year of the new income banded







5.1    Option 1 – This is the first year of the income banded scheme and it may

         be advisable for a full year to be completed before considering any





6.  RISK

6.1   The risks associated with this proposal, including the risks if the Council

   does not act as recommended, have been considered in line with the

   Council’s Risk Management Framework. We are satisfied that the risks

   associated are within the Council’s risk appetite and will be managed as per

   the Policy.







7.1    It is intended that a recommendation from Policy & Resources Committee

         on the final scheme to be implemented will be taken to Council for decision

         on 8 December 2021.


7.2    The final decision at Council will be notified to those households affected

         and key stakeholders.











Maidstone Council Tax Reduction Scheme 2021-22: Maidstone S13A Scheme 202122 v6.