"Financial pressure" - South Tyneside 'owed £32m' council tax by households, new figures reveal

‘The amount quoted is the total unpaid council tax built up over a number of years.’

South Tyneside households owe £32.3 million in council tax according to figures up to March 31, 2026.

This reportedly means council tax arrears in the borough averages £442 per home in the borough, compared with England’s average of £288. However, the council disputes the £442 total.

In Sunderland the figure is £330 per home, Gateshead’s is £297, North Tyneside £347 and Newcastle £139.

South Tyneside Council collected 94.2% of the council tax due for the year ending March 31, against 95.6% across England.

The borough also had one of the highest personal insolvency rates in England and Wales in 2025, at 43.3 per 10,000 adults. It was ninth of all council areas with an average for England and Wales of 25.8.

Council Tax arrears across England reached £7.42 billion in the same period, up from £6.65 billion a year earlier.

The figures come from the Ministry of Housing, Communities & Local Government and the Insolvency Service. They have been compiled for every council in England by IVA (individual voluntary arrangement) Advice Online.

Council acknowledges that some struggle to pay

A spokesperson for South Tyneside Council said: “We know many households are under real financial pressure and these figures show some of the wider challenges facing people in South Tyneside.

“The amount quoted is the total unpaid council tax built up over a number of years. It does not relate just to 2025/26. It also does not mean that every household in South Tyneside owes £442.

“We have a duty to collect council tax because it helps pay for essential local services. But we take a firm and fair approach and work with residents who are struggling to pay.

“We urge anyone who is having difficulty paying to contact us as soon as possible. We can look at their situation, check they are getting all the help they are entitled to and, where needed, agree an affordable repayment plan.

“Our Council Tax Reduction Scheme also supports people on low incomes. Eligible working-age households can get up to 90 per cent off their bill, while pension-age residents can get up to 100 per cent support.

“We will continue to collect money that is owed, while helping residents who are struggling to get the support and advice they need.”

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