Overview
- The full council passed the Local Council Tax Reduction Scheme changes by 58 votes to 26.
- The policy takes effect in April 2026 and applies to working-age claimants, with pension-age recipients unaffected under national rules.
- About 31,200 working-age residents currently receive support, and under the existing model 84% pay no council tax.
- A consultation drew 1,856 responses with most preferring a 75% cap, but leaders opted for a 90% cap that sets a 10% minimum payment.
- The council says the banded approach will cut administrative complexity and align with nearby authorities, while opposition warns it will burden vulnerable residents and raise collection costs, especially in Peterlee, Stanley, Bishop Auckland and Ferryhill.