Yesterday the Local Government Ombudsman reported on the case of two elderly residents of Curran House Mews complex in Jarrow, who were intimidated and humiliated by warden Nancy Storey.

Coun Iain Malcolm revealed that Cabinet members are now looking closely at the issue to decide whether to take any further action.

Meanwhile, pensioners' pressure groups have blasted the council over its failures during the investigation process.

The council was heavily criticised in the Ombudsman's report for not fully carrying out an investigation at the time of the allegations in 2004.

But today Coun Malcolm said: "Officers have already undertaken a thorough review of our complaints procedure to ensure that we learn from the mistakes made.

"We have tightened up procedures, and the Ombudsman has described our performance in dealing with the enquiries it referred to us during 2007/08 as 'remarkable', adding that the council 'is due great credit'.

"We are pleased with this improvement, but must stress that it does not in any way excuse what has happened to these two residents.

"I would like to reassure local people that lead members are looking closely at this case to see whether or not we need to take any further action, over and above the recommendations the Ombudsman has made."

John Berry, secretary of the North East Pensioners' Association, said: "If council staff have failed in their duties toward these people, then they should have the book thrown at them. Responsibility must go right to the top.

"It is extremely important that older people are given a voice if their care or accommodation isn't up to standard."

Gary FitzGerald, chief executive of Action on Elder Abuse, said: "The findings in the report make pitiful and shocking reading.

"It is appalling that the council failed to appropriately implement its own protection policy, a situation which obviously placed these people at serious risk.

"There should be a full and independent inquiry into exactly what the council was doing in this regard and why it appears to have failed so miserably in ensuring an adequate protective response to these older people."

A spokesperson for Age Concern said: "We are pleased that the Local Government Ombudsman has put the protection of the older complainants at the centre of her findings in this case."

Coun Ahmed Khan, deputy leader of the Independent Alliance, said: "This report has pulled back the curtain on a horrifying catalogue of failings within the council.

"The Independent Alliance will lead from the front in fighting for the rights of the elderly in South Tyneside."