A council tax discount scheme that supports thousands of vulnerable County Durham residents has been extended. 

People on low incomes, unemployed, or retired are currently eligible for Durham County Council’s reduction scheme. 

Figures show more than 53,800 residents are benefiting from the discount, with more than 41,000 paying no council tax at all. 

Councillors voted to continue the scheme for another year at a council meeting on Wednesday. 

Durham County Council is the only North East local authority to offer the discount, but residents have been warned it could soon end if extra funding is not provided. 

Councillor Richard Bell, cabinet member for finance, said: “We understand that our residents are feeling huge pressure on their household budgets but we are determined to do what we can to protect those who are most vulnerable.”

The cost of continuing the scheme is estimated between £6-7 million. 

The policy has been used to protect vulnerable residents at a time when welfare reform changes, and more recently the pressure on household incomes from cost-of-living increases, have had a significant adverse impact.

“This decision comes at a cost in terms of lost council tax revenues from working-age households compared to virtually every other council in the country,” Cllr Bell added. 

“We will need to review this position in a years time, particularly if there is no new funding provided by the government to help us balance our budget.”

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It comes as growing financial pressure on Durham County Council means it must save around £22 million next year to balance its budget.

The council is currently £64.1 million short over the next four years - a higher amount than previously forecast due to growing unfunded budget pressures, primarily in children’s social care and home-to-school transport.

Council Leader Amanda Hopgood said the local authority has continued to campaign for more support but is yet to receive a significant lifeline and faces potential “severe cuts” in the future.