South Tyneside mulls council tax reduction scheme where households see bills slashed by up to 90pc
South Tyneside Council is set to consider the renewal of its council tax reduction scheme for another year, to help support residents on the lowest incomes.
A meeting of full borough council next week will consider a report on the scheme for the 2026/27 financial year, which aims to maintain the income-banded approach introduced in 2024.
The council states this approach will ensure that 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, the backdating of council tax reduction up to 12 months in “appropriate cases” and capital below £16,000 being “disregarded for eligibility.”
South Tyneside Council states the scheme supports around 11,300 working-age households in the borough and that the initiative also aligns with the council’s ambition to tackle poverty and financial insecurity, as well as its Armed Forces Covenant.
Councillor Jim Foreman, cabinet member for governance, finance and corporate services on the council, said: “We know that many households continue to face financial pressures, and our council tax reduction scheme is a vital lifeline for those who need it most.
“By targeting support where it’s needed and making things fairer, we’re helping to protect our most vulnerable residents.
“I’m proud that South Tyneside continues to lead the way in supporting people through challenging times, and I encourage anyone who thinks they may be eligible to find out more and apply.”
The council tax reduction scheme is reviewed each year to ensure it meets local needs and remains sustainable and no significant changes are proposed for the coming year.
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.”
South Tyneside councillors at next week’s meeting will be asked to approve the “banded council tax reduction scheme” for the 2026/27 financial year.
The council report adds: “[The] council tax reduction scheme supports the council’s ambition to target support to make things fairer.
“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.
“The scheme also aligns with the council’s Armed Forces Covenant.”
The full council meeting is scheduled to start at 6pm on Thursday (January 15 2026) at South Shields Town Hall and will be open to the public.
The meeting can also be viewed digitally via South Tyneside Council’s YouTube channel.
For more information about the council tax reduction scheme, including eligibility and how to apply, visit www.southtyneside.gov.uk/counciltax