Working Age Council Tax Reduction in County Durham

Council Tax Benefit Is Gone — Here Is What Replaced It

If you are searching for "council tax benefit" in County Durham, the short answer is that it no longer exists as a national benefit. Council Tax Benefit was abolished across England in April 2013, and each local council was required to design its own replacement scheme. In County Durham, that replacement is called Council Tax Reduction — sometimes referred to as Council Tax Support.

Durham's scheme changed again in April 2026, moving from a traditional means-tested calculation to an income-banded discount model. If you were familiar with the old system, the new one works quite differently.

How the 2026/27 Income-Banded Scheme Works

Instead of a complex means test that compared your income against an "applicable amount," Durham now places your household's net weekly income into one of five bands:

• Band 1 (£0–£69.99 per week): 90% discount
• Band 2 (£70–£125): 75% discount
• Band 3 (£125.01–£200): 50% discount
• Band 4 (£200.01–£275): 25% discount
• Band 5 (£275.01 or more): no discount

The key advantage of this system is stability. Under the old means-tested model, small changes in your Universal Credit or wages triggered constant reassessments — Durham was issuing over 250,000 revised demand notices a year. The banded approach means your discount only changes when your income crosses a band boundary.

The trade-off is the 90% baseline cap. Under the previous scheme, the lowest-income working-age households could receive up to 100% reduction. Now Band 1 households normally pay at least 10% of their bill; qualifying terminal-illness cases with an SR1 report can receive 100% support for up to 12 months.

Who Qualifies

You can claim working-age CTR if you are under State Pension age, or have reached State Pension age and receive Universal Credit, live in County Durham, are liable for council tax, and have less than £10,000 in total savings and capital. The £10,000 cap is strict — at £10,000 or above, you are completely disqualified, regardless of your income.

Between £6,000 and £9,999.99, a tariff income is added: £1 per week for every £250 (or part of £250) above £6,000. So £8,000 in savings adds £8 per week to your assessed income. This could be enough to push you from Band 1 into Band 2.

If you have reached State Pension age and do not receive Universal Credit, you fall under the separate nationally prescribed pension-age scheme, which has a higher £16,000 capital limit and can provide up to 100% reduction. If you receive Universal Credit, the working-age scheme applies.

How Your Income Is Assessed

Durham only counts specific types of income against the bands. Two large categories are fully disregarded:

All DWP benefits — Universal Credit (the standard allowance plus any elements), PIP, DLA, ESA, Carer's Allowance, Attendance Allowance — are 100% disregarded. They do not count at all.

The first £25 per week of net earnings from employment or self-employment is disregarded. Net earnings means your pay after income tax, National Insurance, and pension contributions have been deducted.

So if you receive Universal Credit, have capital below £6,000, and work part-time earning £100 net per week with no other countable income, your assessed income for CTR is £100 minus £25 = £75, placing you in Band 2 for a 75% discount. The UC payment itself — regardless of how much it is — does not enter the calculation.

Self-employed claimants face an additional rule: the Minimum Income Floor. If the council determines your declared self-employment earnings are below what you would earn at minimum wage for your expected hours, they may assess you at that higher assumed figure instead.

The 10% Minimum Payment

Under the standard working-age award, Band 1 households pay at least 10% of their council tax bill; verified terminal-illness cases supported by an SR1 can receive 100% for up to 12 months. On a Band A property with a £1,300 annual bill, a 10% contribution is £130 per year — about £10.83 per month on a 12-month payment plan (you can request 12 instalments instead of the default 10).

If even the 10% minimum causes genuine hardship, you can apply for discretionary relief under Section 13A of the Local Government Finance Act 1992. This is a separate application through the council's hardship relief form, requiring detailed income and expenditure information plus six months of bank statements.

How to Apply

Apply online at durham.gov.uk/counciltaxreduction, by phone on 03000 26 0000, or in person at a Customer Access Point. You will need proof of identity, your council tax bill, payslips or evidence of earnings, and bank statements for all accounts covering two recent months.

Submit requested evidence within one calendar month of the council's request. If evidence arrives late without good cause, the official claim date shifts to when the council receives complete evidence. If you are also claiming Universal Credit, submit your Durham CTR application within one calendar month of notifying the DWP of your intention to claim UC; the council backdates the CTR application date to the first day of the relevant UC assessment period.

The County Durham Council Tax Reduction guide walks through the income calculation, evidence requirements, and hardship relief process step by step.

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