The Council Tax Reduction Scheme provides financial assistance with Council Tax bills for residents who are on a low income.

The government abolished the national Council Tax Benefit scheme for working-age people from April 2013, and it was replaced with local schemes decided upon by each individual Local Authority. The government decided that pensionable age claimants must receive no less support than they would have under the old Council Tax Benefit scheme, therefore the scheme for pensioners is different to the working-age scheme (as it is set nationally).

Changes to the Working Age Council Tax Reduction Scheme

Changes to Bexley’s Working Age Council Tax Reduction Scheme were agreed at Full Council on 5 March 2025.

This decision was taken after careful consideration of the impact the change may have on those affected and the provisions in place to support those households on low incomes, including Government initiatives around supporting employment and training and childcare.

The Council Tax Reduction Scheme will reduce the percentage of support provided by 5% across all income bands with effect from 1 April 2025.

Deputy Leader of the Council and Cabinet Member for Resources, Cllr David Leaf said: 

The Council has to set a balanced budget each year with the resources we have available. However, there are many financial challenges ahead of us due to continued rising costs and increasing pressure on the vital services we provide such as Adult and Children’s Social Care and Housing. The new Government is also pushing more costs onto us, like the huge rise in employers' National Insurance Contributions, while reducing the national share funding for councils provided to Bexley and instead giving more money to other areas. We have a duty to find savings where we can in order to offer the best possible service for our residents and that does mean having to make some difficult decisions.

These changes will mean that households on the lowest incomes will still receive significant discounts on their council tax bills, while taking into account the Council’s budgetary position. We will ensure that we continue to signpost residents to the local support available for anyone who may find themselves in financial difficulty and work with our partners to support those in need. Other councils in London and across the country are making similar changes to their schemes as a result of the pressures they face too."

The Council’s business and employment services, BBE, offer a range of support to support people back into employment with training and interview and CV support.

For help and advice for anyone struggling with finances visit our cost of living pages.

Working Age scheme

Working-age Council Tax Reduction claimants in Bexley can receive support of up to of 75% of their Council Tax bill from 1 April 2025, which is means tested. The Council Tax Reduction Scheme award is applied to the Council Tax liability after any other relevant Council Tax discount has been applied (e.g. Single Person Discount, Disabled Band Reduction etc.).

The scheme applies a % award based on the income band that the claimant falls into. When calculating the income band, an Applicable Amount (i.e. the amount set by Government annually which they consider is the amount needed to cover basic expenses such as food and fuel charges) is applied based on the household circumstances. This gives a base level of income disregard that increases if the claimant has a partner, children, has a disability etc. In addition, some specific incomes are disregarded before income is compared to the Applicable Amount (e.g. Child Benefit, Personal Independence Payments, housing element of Universal Credit) -  the income disregards are the same as those identified within the national Housing Benefit regulations. 

The remaining weekly income once the Applicable Amount and any disregarded incomes have been deducted is then used to apply the appropriate income band to the claim as shown in the table below:

Where a person is in receipt of Income Support, income-based Jobseekers Allowance or income-related Employment and Support Allowance, they are automatically put into the highest award band (as their income will be the same as their Applicable Amount). The same applies to someone receiving Universal Credit who is not working, where their only income is Universal Credit.

Pensionable Age Scheme

As the government decided that pensionable age claimants would remain under a nationally set scheme, pensioners can receive support of up to 100% of their Council Tax bill. You can find out when you will reach pensionable age at GOV.UK - Pension Credit.

The pensionable age scheme is means tested, which means that a standard weekly income amount is allowed, depending on the number of people in the household and relevant personal circumstances (example, disability) and any income a household receives above that amount reduces the entitlement to Council Tax Reduction on a sliding scale.  

Awards of Council Tax Reduction are made after any other relevant Council Tax discounts have been applied to the account (e.g. Single Person Discount).

Entitlement to Council Tax Reduction may be backdated by up to one month prior to the date the claim was made for working-age claimants or up to three months for pensionable age claimants. This is awarded subject to 'good cause' criteria (i.e. a person must demonstrate that there was a continuous good reason why they were unable to make their claim at an earlier date).

Make a new claim at Housing Benefit and Council Tax Reduction Scheme claim

If you already receive Council Tax Reduction, report a change in your income/capital/household circumstances.

If you think the decision about your Council Tax Reduction entitlement is wrong

You can make an appeal directly to the Council if you are not satisfied with the decision we have made and it affects your entitlement or the amount you have been awarded. The appeal must be made in writing to PO Box 713, Erith, Kent DA8 1UN.

State clearly the matter you disagree with and the reasons for this, attaching any supporting documentation.

When we have looked at your case again, we will send you our decision. If you still disagree, you have the right to appeal to an independent body, the Valuation Tribunal Service.

You will need to fill in an appeal form at the Valuation Tribunal Service. You must send your appeal to the Tribunal within two months of the date you receive our decision.