People on low incomes in County Durham could be set to pay more council tax under new measures, writes Local Democracy Reporter, Bill Edgar.
Durham councillors have proposed launching a consultation on changes to a discount scheme for all working-age residents, which currently costs more than £60 million a year.
The scheme was introduced in 2013 to offer eligible working-age residents discounts of up to 100 per cent on their council tax bills, supporting more than 32,000 households.
However, Durham County Council said national welfare reforms have “significantly changed” the benefits system, meaning it has become “increasingly complex, costly to administer and confusing for claimants”.
Four potential new ways to operate the Local Council Tax Reduction Scheme (CTRS) for working-age residents have been suggested and are based around the introduction of an income-banded scheme.
An income-banded CTRS, with support of up to 100 per cent still being made available to working-age residents;
An income-banded CTRS, with a maximum of 90 per cent of the bill being covered by the CTRS and a minimum of a 10 per cent contribution from all working age residents to their council tax bill;
An income-banded CTRS, with a maximum of 80 per cent covered by the CTRS and a minimum of a 20 per cent contribution from all working age residents;
An income-banded CRTS, with a maximum of 75 per cent covered by the CTRS and a minimum of a 25 per cent contribution from all working age residents;
Council officers said the changes would save the authority between £3.8 million and £10.35 million a year.
The council said the current complex calculations would be replaced with income bands to simplify the process, avoid multiple bills being issued and provide an opportunity to make savings in the administration of the scheme.
It will also consider circumstances where minimum contributions, if applied, may not be applicable, such as those diagnosed with a terminal illness and how wider discretionary support can be provided in these instances.
Councillor Nicola Lyons, cabinet member for stronger communities and belonging, said: “County Durham has one of the most generous council tax support schemes in the country in terms of working age households, helping thousands of our most vulnerable residents each year.
“It’s just one of the ways we help vulnerable and low-income households, with our Welfare Assistance Scheme and Household Support Fund also providing vital support to people in need.
“The introduction of our free school meals auto-enrolment programme resulted in almost 2,000 more families saving hundreds of pounds on food costs over the current academic year. We also work closely with other public and voluntary sector organisations to tackle deprivation in our communities.
“The changes to CTRS would ensure we can continue to provide this much-needed support, while taking into account the increasing financial pressure local councils are under. None of the potential changes would impact pension age households. However, before any decisions are made, it’s important we find out what people think, and a consultation would provide the opportunity for us to gather residents’ views.”
The proposed consultation would run from July 16 to September 23.
Bill Edgar
Reporter for the Local Democracy Reporter Service.
South West Durham News covering news across County Durham.
