County Durham Council Tax Minimum Payment: The 10% Rule Explained

What Changed in April 2026

Before April 2026, the lowest-income working-age households in County Durham could receive 100% Council Tax Reduction — meaning they paid nothing. Under the standard 2026/27 income-banded scheme, the maximum discount is 90%, so Band 1 households pay at least 10% of their net Council Tax liability. An SR1-confirmed terminal illness qualifies for 100% support for up to 12 months.

This changes the bill for households that previously received a 100% award under the old scheme. On a Band A property (roughly £1,300 per year), a 10% contribution works out to about £130 per year, or £2.50 per week.

Why the Council Made the Change

Durham County Council was drowning in administrative costs under the old means-tested system. Minor monthly fluctuations in Universal Credit earnings triggered automated reassessments, generating over 250,000 revised demand notices a year. The income-banded model absorbs small pay changes without triggering a new bill.

The council consulted on several options, including a 75% maximum cap (25% minimum payment). For 2026/27 it adopted a 90% maximum standard discount.

How the 10% Is Calculated

The 10% applies to your net Council Tax liability — that's your bill after any statutory discounts (like the 25% Single Person Discount or a Disabled Band Reduction) have been applied, but before CTR.

So if you're a single person in a Band A property:

1. Gross annual bill: ~£1,300
2. After 25% Single Person Discount: ~£975
3. After 90% CTR: you pay 10% of £975 = ~£97.50 per year

The council divides that remaining balance into monthly instalments (typically 10 or 12 months).

The One Exception: Terminal Illness

Households where a resident has a terminal illness — confirmed by an SR1 medical form from their GP or hospital consultant — receive a 100% discount for up to 12 months. This is the only circumstance under Durham's working-age scheme where the 10% minimum is waived entirely.

If You Can't Afford the 10%

The minimum payment is fixed in the scheme rules, so the council can't waive it through normal CTR. But two other routes exist:

Section 13A hardship relief — Durham County Council operates a discretionary fund for households facing exceptional financial hardship. You apply using the council's specific hardship relief form, providing a detailed income and expenditure breakdown plus six months of bank statements. The council has 21 days to decide. This can temporarily reduce or eliminate your remaining bill.

Crisis and Resilience Fund — for acute material hardship, including food, energy costs, and settlement grants for vulnerable residents moving into independent accommodation. It does not cover council tax specifically, but it can free up money elsewhere in your budget.

If you're falling behind on the 10% and receiving reminder notices, contact Citizens Advice County Durham (0808 278 7821) or the DCC Welfare Rights Service (03000 268968) before the debt escalates. For anyone already facing enforcement, free debt advice from StepChange (0800 138 1111) or National Debtline (0808 808 4000) is the right first step.

The County Durham Council Tax Reduction guide covers the hardship application process in detail, including what evidence the council expects and how to structure your case.

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