The four County Durham towns most likely to be impacted by proposed council tax changes have been revealed.
People on low incomes could be set to pay more under new measures proposed by Durham County Council.
The local authority has suggested several reforms to its Council Tax Reduction Scheme after warning changes are “increasingly necessary” due to funding constraints.
Four proposals, based on an income-banded scheme, include: working-age residents not paying any council tax; a 10 per cent contribution; a 20 per cent contribution; or a 25 per cent contribution to their council tax bill.
Peterlee, Stanley, Bishop Auckland, and Ferryhill are set to be the most impacted due to having the largest proportion of council tax discount claims, the local authority said.
The introduction of a cap would result in all working-age residents required to pay a minimum amount towards their council tax liability – meaning that all residents, regardless of their financial circumstances, would make a contribution to the services provided by the council.
The scheme was introduced in 2013 to offer eligible working-age residents discounts of up to 100 per cent on their council tax bills. About 32,6000 working-age people are currently signed up, at a total cost of more than £60 million per year. Council data reveals 62.6 per cent of current claimants are female.
A council report states the review “has never been more imperative” due to several changes to the landscape of welfare benefits, “which has made the scheme increasingly administratively burdensome and complex”.
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Deputy Council Leader Darren Grimes told a cabinet meeting: “Introducing a cap on the level of support available to working-age claimants would bring the council scheme in line with the majority of other councils, ensuring all our residents have a financial stake in and make a contribution to the council, helping us to protect frontline care services and address the social care emergency.”
A final decision is due to be made at a full council meeting in December.
Cllr Grimes added: “Introducing a cap is not taken lightly, especially not for a lad from Stanley, and this is why we want to consult far and wide and will seek views from a broad range of stakeholders. We will reflect carefully on the feedback before making any recommendations.”
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