Durham council criticised for cutting council tax support

The Reform-led local authority faced criticism from rival councillors during a debate on plans to reduce the amount of council tax support provided by the council. 

Changes to the Local Council Tax Reduction Scheme (LCTRS) mean the working-age residents will pay at least 10% of their bills. 

Reform said the changes are necessary due to funding pressures. Councillor Darren Grimes, the council’s deputy leader, said: “It’s all about providing a fair, efficient and effective system of support that’s vital to our residents. The changes proposed not only reflect that, but also the welfare benefits system.”

Respondents to a public consultation largely supported changes to the scheme.

Cllr Grimes added: “The overriding message from the public was clear: everyone should be contributing to the services they use.”

But Liberal Democrat Councillor Mark Wilkes warned the county’s most vulnerable residents would be impacted. He said: “Taxing somebody who doesn’t have money to pay it doesn’t work and it is immoral. It’s simply illogical to try and squeeze money out of somebody who doesn’t have any.”

His plea for the council to maintain the 100% council tax support was backed by Labour’s Rob Crute, who warned the council could be faced with high administrative costs due to the changes. 

He told a full council meeting: “What we are doing here is bringing people into a council tax regime who have never paid before, and there is a reason for that. The impact of poverty is exactly the same today as it was in 2013, and we’re not going to change it by bringing people into a council tax regime who simply can’t afford to pay it. It won’t benefit them or the council because it won’t bring in increased revenue. It will cost the council in increased collection fees.” 

The support scheme was introduced in 2013 to offer eligible working-age residents discounts on their council tax bills and currently supports 31,200 claimants. The current uncapped system means 84% of claimants have no council tax charges to pay. 

While the majority of consultation respondents favoured a 75% cap on council tax bills, cabinet members chose a 90% cap. Andrew Husband, council leader, said the cap was a “very generous offer”, adding: “Welfare should be a safety net, not a lifestyle choice.”  

Reform’s proposal was also supported by Councillor Pete Molloy, Independent member for Spennymoor, who said all working-age residents should contribute to the council. He added: “Why should it always be left to hardworking people who struggle? Why should people who can work but refuse to choose benefits as a career option? It is morally wrong.” 

Alternative motions tabled by the Liberal Democrats, urging the council to maintain the 100% support and alter the financial contributions linked to the scheme, failed to receive overall support. 

Changes to the council tax reduction scheme were approved by 58 votes to 26 and are due to come into force in April 2026. 

Reform Councillor Nicola Lyons, cabinet member for communities and civic resilience, said: “It’s simple: we need a fairer system that benefits everyone, not just those on welfare benefits. Everybody needs to pay something in County Durham.”