Latest on South Tyneside council tax discount scheme where households can have bills cut by up to 90pc

The latest meeting of full borough council heard a report on the scheme, which maintains the income-banded approach introduced in 2024, and gave it the go-ahead for the 2026/27 financial year

Local authority chiefs stressed this approach will ensure those on the lowest incomes can receive up to 90 per cent off their council tax bill, with support tailored to individual household circumstances.

The scheme is reviewed annually to ensure it remains fair, effective, and affordable and there are no changes proposed for 2026/27, with several key features set to benefit eligible residents.

This includes “continued protection” for pension-age residents, who remain eligible for up to 100 per cent support, “income disregards” for disability benefits, carers’ allowance and war pensions.

It also includes the backdating of council tax reduction up to 12 months in “appropriate cases” and capital below £16,000 being “disregarded for eligibility”.

The full council meeting (on Thursday, January 15) heard the scheme supports around 11,300 working-age households in the borough and the initiative also aligns with the council’s ambition to tackle poverty and financial insecurity, as well as its Armed Forces Covenant.

Labour’s Councillor Jim Foreman, cabinet member for governance, finance and corporate services on the council, said: “The council tax support scheme is a locally funded and determined discount which reduces the council tax payable by households on lower incomes.”

A report from council chiefs also revealed how much the council tax reduction scheme costs the local authority.

This includes the “estimated cost of the scheme (including support to those of pensionable age) for 2026/27” being “currently around £21.5m per annum”.

Councillor Chris Davies, Green group representative, said he was pleased to see further changes had not been made to the support scheme and hit out at council tax in general as “deeply regressive”.

He added: “Councils are forced to raise more money from more people who have the least capacity to pay and that’s why this scheme exists.

“We’re funding gaps through council tax rises, however we then have to pay £20million to our community because they cannot pay.

“Next year we have a massive projected budget deficit, and the year after, and I fear this scheme will be revised again.”

The local authority report which went before the meeting stressed that the “council tax reduction scheme supports the council’s ambition to target support to make things fairer”.

It added: “It meets one of the council’s specific priorities in its three-year strategy to support those who are disproportionately likely to experience poverty and financial insecurity.”

For more information about the council tax reduction scheme, including eligibility and how to apply, visit www.southtyneside.gov.uk/counciltax.