Proposed changes to a Council Tax Reduction Scheme (CTRS) in County Durham could result in increased costs for the region’s most vulnerable residents.
Durham County Council is considering revisions to its CTRS, which currently offers eligible low-income households discounts of up to 100% on their council tax bills.
Reform Party councillor Nicola Lyons stated that the existing scheme is among the “most generous in the country,” and the council is exploring options to cap discounts as part of broader cost-saving measures.
While declining to comment on specific policies, debt charity StepChange emphasized that “reducing support for the poorest is not the answer” to the financial pressures faced by local authorities.
Richard Lane, Chief Client Officer at StepChange, advocated for increased government funding for council tax support to enable councils to continue offering 100% reductions to residents with the lowest incomes.
“Ultimately, unaffordable council tax bills lead to counter-productive debt collection and enforcement that harms the worst off and leads to higher health and social costs linked to problem debt,” Mr. Lane stated.
Durham County Council has indicated it is weighing a public consultation on four potential options for the CTRS scheme.
The first option would maintain the current system, allowing residents to apply for discounts of up to 100% based on income.
The remaining options under consideration would require residents to pay a minimum of 10%, 20%, or 25% of their total council tax bill.
The council reports needing to save £45 million by 2028-29 to achieve a balanced budget, with the current CTRS costing over £60 million annually.
The proposed changes are estimated to generate savings ranging from £3.8 million to £10.35 million per year.
The current system also necessitates recalculating residents’ bills each time there is a change to their Universal Credit (UC) claim.
The council reported that, last year, the average UC claimant received 11 council tax bills, incurring £175,000 in printing and postage costs.
Reform UK, which recently gained control of the council, has pledged to conduct a comprehensive review of “wasteful spending.”
Ms. Lyons reiterated that the county currently has “one of the most generous council tax support schemes in the country.”
“The changes to CTRS we are looking to consult on would ensure we can continue to provide this much-needed support, while taking into account the increasing financial pressure local councils are under,” she added.
“None of the potential changes would impact on pension-age households.”
If approved by the council’s cabinet, the consultation is scheduled to take place between July 16 and September 23.
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