Changes to Durham council tax support backed by cabinet

At a cabinet meeting on Wednesday (November 19), the members of the Reform executive agreed it makes “perfect sense” to reform the Local Council Tax Reduction Scheme (LCTRS).

The scheme, introduced in 2013, currently means 31,200 residents get discounts on council tax bills. Of those, 84% who claim pay no council tax.

But the changes would see working-age residents make a minimum contribution of 10%, based on income. It means those on the full support will have a £162 bill, and the proposed changes are expected to generate £2.2 million for the council in total.

Councillors will be asked to sign off the changes on December 10 at a full council meeting.

Corporate director of resources Paul Darby told the cabinet meeting: “The proposed changes to the working age council tax reduction scheme set out in this report will make the scheme fairer, simpler to administer, easier to understand and see all working age residents contribute to the cost of council services.”

The 10% contribution would be income-based, following the results of a public survey.

According to the authority, these changes are vital due to the migration towards universal credit, and savings could be made when it comes to the costs of sending out bills.

Reform Councillor Nicola Lyons said the changes make “perfect sense”.

She added: “The current scheme was devised before universal credit migration, and as the migration has progressed, we have seen some significant impact.

“This means that our administration costs will continue to increase.”

It is believed Peterlee, Stanley, Seaham, Bishop Auckland and Sherburn will be most affected as they have the greatest percentage of people receiving the maximum amount of support.

However, the council acknowledged the “financial challenges” some residents would face regarding the change and noted any reduction in support for council would need to be “balanced” out.

Andrew Cowan, a chronically ill former counter-terrorism firearms officer, previously pleaded with council bosses not to remove his “lifeline” council tax benefits, which he said would leave him “struggling to live”. 

The 51-year-old said: “If I have to pay council tax again, I don’t know what I’ll do. Bills are going up no matter what, so I need the 100 per cent relief. If I had to pay even a percentage, it would impact my daily life. I would struggle to live without the support.

“Look at the impact it will have on disabled people with little or no income. It’s not just a case of cutting costs for the council; targeting the most vulnerable in society is just cruel.

“There are thousands of households that are going to be affected by this. It’s really worrying.”

In short, the proposed changes are: 

• Implement an income-banded Local Council Tax Reduction scheme for working-age residents
• Reduce the maximum level of support available to working-age residents from 100% to 90%  
• Apply one set rate for non-dependant deductions, at £10 per week, for each non-dependant regardless of their earnings
• Reduce the maximum capital limit for working-age residents from £16,000 to £10,000