Council Tax Reduction for Disabled Residents in County Durham: PIP, DLA and Terminal Illness

How Disability Benefits Affect Your CTR

Under Durham's 2026/27 Council Tax Reduction scheme, disability benefits themselves are fully disregarded when calculating your weekly income. PIP, DLA, Attendance Allowance, ESA, and any other DWP benefit payments don't count toward the income that determines your band.

For a disabled resident whose only income is from DWP benefits and whose capital is below £6,000, their assessed weekly income is £0 — placing them in Band 1 for a 90% discount.

But disability benefits deliver a second, less obvious advantage: they can eliminate the £10 per week non-dependant deduction that otherwise applies when other adults live in the household.

The Non-Dependant Deduction Waiver

Normally, each non-dependant adult in your home triggers a flat £10 per week deduction from your CTR award. This can significantly erode a 90% discount, especially in households with multiple adults.

The deduction is waived entirely — reduced to £0 for every non-dependant in the home — if the CTR applicant or their partner receives any of:

• PIP daily living component (either standard or enhanced rate)
• DLA middle or high rate care component
• Armed Forces Independence Payment (AFIP)
• or is registered severely sight-impaired or blind

This matters most for disabled people living with adult children or other family members who act as informal carers. Without the waiver, a single adult child's presence costs the household £10 per week — £520 per year — from their CTR award. Two adult children would cost £1,040.

Terminal Illness: The 100% Discount

Durham's working-age scheme caps the maximum discount at 90%, but makes one exception. If anyone in the household has a terminal illness confirmed by an official Special Rules 1 (SR1) medical report, the discount is automatically upgraded from 90% to 100% for up to 12 months.

This removes the 10% minimum payment entirely. The 100% provision is available for up to 12 months.

To access this:

1. Obtain an official SR1 medical report confirming the terminal diagnosis
2. Submit the SR1 to Durham County Council alongside the CTR application
3. The SR1 report confirms eligibility for the 100% provision, which can last for up to 12 months

Other Disability-Related Council Tax Reductions

Council Tax Reduction isn't the only discount available to disabled households. These apply separately and stack with CTR:

Disabled Band Reduction — if your home has features essential for a disabled resident (extra bathroom, wheelchair room, extra kitchen), the property can be treated as one council tax band lower for billing. A Band C home would be charged at Band B rates. This is separate from the CTR calculation.

Severe Mental Impairment Exemption (Class U) — if all adults in the household are certified as severely mentally impaired and receive a qualifying benefit, the property is 100% exempt from council tax. This applies to conditions like dementia, severe learning disabilities, and brain injuries.

Carer's Allowance — this payment is fully disregarded when Durham calculates CTR income. It does not by itself establish entitlement to a separate Council Tax discount.

These reductions and exemptions are separate from CTR. Where awarded, they reduce the net liability before the CTR percentage is applied.

The County Durham Council Tax Reduction guide covers each disability-related discount and how they interact, with a checklist for making sure nothing is missed.

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