Council Tax Support (CTS) scheme consultation
Background to the consultation
The council is consulting on proposed changes to the Council Tax Support Scheme for working-age people and welcomes feedback on the proposals.
You can respond to this survey until Wednesday 1 October 2025. Request a printed copy of the survey by emailing consultations@thanet.gov.uk or calling 01843 577000
Please read the background information on this page before completing the survey.
Council Tax Support (CTS) Scheme Consultation Survey
Responses are completely anonymous and will be used to help shape the final version of the Council Tax Scheme.
Council Tax Support helps people who cannot afford to pay their Council Tax. It assists people who qualify to pay much less Council Tax by giving them a discount, mainly based on the income of the household.
Currently the maximum discount is 90% of Council Tax for working-age households, which means they only pay 10% of the Council Tax. Households with higher income levels will generally receive a lower discount and will pay more Council Tax.
PermalinkEach local council must devise its own Council Tax Support scheme for working-age people
The current working-age Council Tax Support scheme has been in place since 2013. It is complicated and not compatible with Universal Credit. This is a concern, given that by April 2026, 98% of working-age Council Tax Support recipients in Thanet will also be receiving Universal Credit.
The council would like to modernise and simplify the Council Tax Support scheme, bringing it in line with Universal Credit. The proposals also seek to provide more support to the people who need it most, increasing the maximum support level from 90% to 100%, meaning households that qualify would not have to pay any Council Tax.
PermalinkThese changes will affect working-age households in the district who currently receive or will apply for Council Tax Support.There are currently 7,373 working-age households receiving Council Tax Support in the district.
Pension-age households will not be affected as central government decides how that scheme works.
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Proposed change |
Description and rationale |
| 1. Introducing an income ‘grid’ scheme with four different levels of support: 100%, 75%, 50% and 25% | An income grid scheme places a person’s income into a pre-defined grid, and their income level determines the level of support they will receive. The grid would be based on Universal Credit, increasing in line with national benefits. |
| 2. Simplifying the scheme by removing the applicable amount and income premiums. | The Council Tax Support award would be based on a list of incomes that would be included in the calculation of the award (for example, wages) and a list of incomes that would be excluded from the calculation (for example, Personal Independence Payments). If a resident is in receipt of Universal Credit and not in receipt of any earned income, they would be entitled to the maximum level of support. This would make the scheme more transparent and easier to understand. |
| 3. Increasing the maximum award from 90% to 100% | This would ease the financial pressure on those with the lowest incomes in the district. Over 6,600 households in the district would benefit from this proposal. |
| 4. Non-working households in receipt of Universal Credit to receive 100% Council Tax Support | This would ease the financial pressure on those with the lowest incomes. Such households receive direct support to return to work through Jobcentre Work Coaches. Once in work, Council Tax Support would be assessed in line with the income grid. |
| 5. Introducing a standard Non-Dependant Deduction (NDD) of £10 per week | This means that some households with an adult other than a partner (such as an adult son or daughter) will have £10 per week deducted from the amount of help they receive. Currently the amount deducted varies, with some deductions higher than £10 per week and others lower. This would help to simplify the scheme. If under the existing scheme an NDD does not apply, those protections would remain in the new scheme. |
| 6. Expanding the Capital Limits | This change would increase the current maximum amount of capital from £6,000, to £10,000. The previous limit of £6,000 has been in place since 2013 and needs to increase to reflect inflationary increases and to bring it in line with the capital limits for pension-age claimants. |
| 7. Removal of the Minimum Income Floor (MIF). | This would result in Council Tax Support being calculated based on actual self-employed income rather than a minimum income floor (MIF) assessment which is an assumption based on the National Living Wage. |
| 8. Supporting care leavers from the age of 21 years, up to their 25th birthday. | Where they are in receipt of Council Tax Support (CTS). If they are not entitled to 100% CTS then the council will cover the cost of their remaining Council Tax liability. Once they reach 25, the additional support will cease. |
The options that have been considered include:
Leave the Council Tax Scheme as it is.
- This is the simplest option, but it means the scheme would be out of date and difficult to administer as it does not align with Universal Credit.
Increase the level of Council Tax to pay for the administrative burden of the current scheme.
- This is not considered the best use of Council Tax revenue. If a more modern, simple and generous scheme can be implemented, then the council believes this to be a better use of council taxpayers’ money.
Find the additional administration costs (of staying on the current Council Tax Scheme) by cutting other services.
- Given it is possible to fund this by implementing a revised Council Tax Scheme, this option has been discounted to avoid wider impact on other council services.
You can read more about the proposed changes in the following report which was discussed at Cabinet on Thursday 24 July 2025.
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