Durham County Council proposes capping council tax support

Jonny ManningBBC Information, North East and CumbriaBBCDurham County Council is contemplating lowering council tax assist with a view to save moneyA native authority’s plan to overtake its Council Tax Discount Scheme (CTRS) might result in its poorest residents being required to pay extra in the direction of their invoice.Durham County Council plans to make modifications to its Native Council Tax Discount Scheme (CTRS), which presently permits low-earners to use for a reduction of as much as 100% off their invoice.Reform councillor Nicola Lyons mentioned the present scheme was one of many “most beneficiant within the nation” and the council was contemplating capping reductions as a part of cost-saving efforts. Debt charity StepChange mentioned it couldn’t touch upon particular insurance policies, nevertheless it didn’t imagine “lowering assist for the poorest is the reply” to council funding pressures. Richard Lane, the charity’s chief consumer workplace, mentioned: “StepChange has referred to as for the federal government to extend funding for council tax assist to make sure councils can proceed to supply residents with the bottom incomes 100% reductions. “Finally, unaffordable council tax payments result in counter-productive debt assortment and enforcement that harms the worst off and results in increased well being and social prices linked to drawback debt.”Council tax optionsThe council mentioned it was contemplating holding a session on 4 attainable choices for the CTRS scheme.The primary would enable residents to use for a reduction of as much as 100% off their payments, relying on their earnings.The remaining choices would require residents to pay a minimal of 10%, 20% or 25% of their full invoice.The county council mentioned it was required to save lots of £45m by 2028-29 to stability its books and CTRS presently prices greater than £60m a 12 months. It estimated the proposed change would save between £3.8m and £10.35m every year.The present system additionally requires residents’ payments to be recalculated each time a change is made to their Common Credit score (UC) declare.The council mentioned final 12 months the typical UC claimant acquired 11 council tax payments, which price the council £175,000 in printing and postage.Reform UK lately took management of the authority and promised to hold out a Elon Musk-style overview into “wasteful spending”.Lyons mentioned the county has “one of the beneficiant council tax assist schemes within the nation”.”The modifications to CTRS we want to seek the advice of on, would guarantee we will proceed to offer this much-need assist, whereas considering the rising monetary strain native councils are beneath,” she mentioned. “Not one of the potential modifications would affect on pension-age households.”If the council’s cupboard approves the session, it is going to be carried out between 16 July and 23 September.