Council tax support scheme continue

Changes to a council tax support scheme should be given more time before any further reforms are considered, residents have been told, writes Local Democracy Reporter, Bill Edgar.

Darren Grimes, Durham County Council’s cabinet member for economy, said extending the current Local Council Tax Reduction Scheme (LCTRS) for another year would provide stability while allowing the authority to assess the impact of changes introduced in April.

The council is proposing to retain the existing scheme for working-age residents throughout 2027/28, keeping the maximum level of support at 90% of a claimant’s council tax bill.

The authority currently supports about 54,100 residents through the scheme, including 33,500 working-age people and 20,600 pensioners.

The current arrangements were introduced in April following a review and public consultation.

But the reforms were criticised by political opponents, who argued they would place a greater financial burden on some of the county’s poorest residents.

Cllr Grimes said: “Earlier this year, we made significant changes to the working-age scheme, moving to a simpler, income-banded approach and introducing a minimum contribution for all working-age households.

“The changes weren’t taken lightly, but were necessary to ensure that the scheme remains financially sustainable and fair while continuing to protect those on the lowest incomes.”

As part of the new scheme, the council replaces the previous system with an income-banded model for working-age applicants, reducing the maximum level of support from 100% to 90%, and requiring all working-age claimants to contribute at least 10% towards their council tax bill.

Speaking at Wednesday’s cabinet meeting, Cllr Grimes said it would not be “prudent” to make further changes before the authority fully understood their effect.

“The changes that were made to the LCTRS have only been in place since April,” he said.

“It’s therefore right that we take a measured, evidence-led approach to considering whether to make further changes. Making further changes now before we fully understand the impact on residents, collection and demand wouldn’t be prudent.”

Under the proposals, income thresholds used to assess eligibility would also be increased in line with the National Living Wage.

The Reform member for Annfield Plain and Tanfield added: “This is a balanced approach, maintaining and protecting support for those who need it while ensuring the scheme remains sustainable and deliverable for the council and the wider council taxpayer.”

Cabinet members were told that further monitoring is needed to understand how the revised scheme affects collection rates, administrative efficiency, residents’ ability to pay and any wider impact on deprivation.

The proposals will be referred to a meeting of the full council in October.