Thousands of Darlington residents will pay reduced council tax bills after an annual support scheme was approved.  

Councillors at Darlington Borough Council agreed to extend the council tax support scheme for people on low incomes. 

Under the scheme, working-aged people can only receive a maximum of 80 per cent support towards their council tax bill. Pensioners can receive up to 100 per cent support.

From April 2023, care leavers under the age of 25 became exempt from council tax under discretionary powers, meaning they were unaffected by the scheme.

Pensioners are protected by national regulations. 

Town Hall officials said the scheme will not have any “significant financial implications”, so changes to the council’s budget are unnecessary. 

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

Entitlement to council tax support will be means-tested.  The amount of council tax support awarded will depend on: 

  • The circumstances of the claimant and their family, such as their income and savings. 
  • The number of dependent children who live in the household and their circumstances. 
  • The number of other adults who live in the household and their circumstances. 
  • The amount of Council Tax, less any other discounts or reliefs. 

News of the extension comes as the council warned of “significant and unparalleled financial challenges” as it reveals plans to increase council tax by five per cent, increase charges and make cuts. 

A proposed council tax increase of 2.99 per cent, plus a social care precept of two per cent are among the main changes affecting residents.

The council said: “Darlington currently has the second lowest council tax in the North East and as such we cannot raise sufficient income from charges to fund the spending pressures we face.  Every one per cent increase in council tax increases revenue by approximately £0.67 million.”

Darlington currently has a low tax base with 44 per cent of properties in Band A and 79 per cent in Band A-C. 

The significant additional demand for services has been described as putting “unprecedented pressure” on affordability meaning the council's reserves could be fully depleted by the end of 2026/27, bosses warned. 

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A report read: “The council continues to face significant and unparalleled financial challenges stemming from reductions in public spending between 2010 and 2019 where the Council’s budget was reduced by £46 million in real terms - a 36 per cent reduction in budget.  

“This financial position was further compounded in the aftermath of Covid as demand for services rose along with an unstable economic climate, where the country saw the cost of living increasing, high inflation, income deprivation and poverty rising.”

“If Darlington had the average England Band D council tax level, we would generate an additional £8.7 million per year,” the council added. “This highlights the disparity in how local government is funded.”