THE region's biggest local authority plans to close 17 old people's homes with the potential loss of more than 350 jobs.

But Durham County Council is planning five new-style 'extra care schemes,' four homes for mentally ill pensioners and an increase in services that will help elderly people living in their own homes.

The Labour council hailed the proposals, which will mean a net reduction of 236 beds, as a move away from 'institutional' care.

The council says it faces a possible £60m bill to upgrade its 25 residential homes to meet new standards being phased in from next year.

Unlike councils such as Darlington and Newcastle, who have transferred their care homes to the private sector, Durham is taking what it believes is a pioneering approach.

Eight homes will be retained but five extra care schemes will be built with non-profit-making partners such as housing associations.

These are aimed at people who need more support than sheltered housing can offer but still want their independence.

Accommodation will also be built for dementia sufferers and intermediate care will be expanded to enable people to continue living at home rather than in an institution.

The council's Executive Committee met in secret on Monday and backed a consultation programme with unions, carers and their families. If they get final approval, the proposals will be phased in over three years. The council, which has a no compulsory redundancy policy, will set up a task force to help home staff find other jobs.

Council leader Ken Manton said the move was not designed to cut spending and that the council hoped to 'improve and modernise' its Charter Mark-winning services.

"Our aim is to provide older people in County Durham with some of the best equipped and most modern services in the country and to create a model for other authorities to follow. There will be no sudden overnight closures.''

Derek Little, the GMB's representative at the council, said: "When you look around the region at other authorities this is radically different for the council to invest money in alternative services.

"It is forward looking and we welcome it in that sense. On the other hand we are worried about our members and what they think. We are looking to minimise the reduction in jobs.''

Independent councillor for Weardale, John Shuttleworth, said: "It will be a step back into the Dark Ages. He added: "We have got an ageing population and we should be looking to provide more beds.