Elderly residents had demonstrated against the plans
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Plans to close up to 12 care homes in County Durham have been rejected after a rebellion by Labour councillors.
The controversial proposal, which would have saved £3m a year, was voted down by 23 votes to 22 at a meeting of the council's controlling Labour group.
The decision means nine care homes will remain open. But another three already scheduled to close, are likely to go.
Councillors have faced two demonstrations from residents and families opposed to the closures.
Durham County Council has said many of the homes are only two-thirds full.
The union Unison said it was concerned about job losses, the impact on older people and about handing over all the care homes to the private sector.
A full cabinet meeting of the authority is expected to discuss the situation soon.