Review of the Council Tax Support Scheme

We want everyone living in North Tyneside to have a fairer and better quality of life. One of the ways we do this is by providing help to thousands of low-income households by reducing their council tax bill.

We are considering moving from our Council Tax Support Scheme (CTS) to a new, simpler income banded scheme, like many other councils in the region and country. This change would affect residents of working age (typically between 16 and 66) who claim CTS. It will not affect pensioners as Government makes the rules around the pensionable age scheme. The new scheme will be fairer, with some paying more and some paying less. Around 80% of people will be better off.

Survey Link

Read Frequently Asked Questions (FAQs)

Financial and other support for all

Support from the tenancy and financial support service


Why we want to change the Council Tax Support Scheme

  • To make it easier for residents to understand what they are entitled to
  • The introduction of Universal Credit, which is gradually replacing older benefits, has created the need for change. Universal Credit recipients need to provide us with a lot of information to claim Council Tax Support and are subject to frequent changes in their entitlement
  • To continue supporting those on the lowest incomes
  • To make sure our funds are going to those who need it most.

A simpler scheme is more efficient to run and saves us money. What is being proposed

We are proposing to move over to a banded scheme which will provide different levels of support depending on what band of income you are in. If your income changes, as long as it stays in the same band of income, you won’t see a change in the support you receive. It will help people most in need, on the lowest income.

Why should you take part in this consultation

  • No decisions have been made yet and we are consulting on options
  • Feedback from this consultation will help shape the final recommendations, which will be included in a report published before a Full Council meeting
  • If elected councillors agree to progress the CTS scheme changes, they would take effect in April 2026.

Useful information

  • Those on the lowest income will get 100% support (currently only 85%)
  • There will be no reduction in support if another person/non-dependent is living with you
  • Receiving income from personal Independence, Disability Living Allowance and Child Benefit.?
  • The capital allowance will reduce to £6000. If you have savings above this amount you will not be able to claim.
  • Around 80% of our current claimants will be better off and 75% will pay nothing.

Survey Link

Read Frequently Asked Questions (FAQs)

Financial and other support for all

Support from the tenancy and financial support service

We want everyone living in North Tyneside to have a fairer and better quality of life. One of the ways we do this is by providing help to thousands of low-income households by reducing their council tax bill.

We are considering moving from our Council Tax Support Scheme (CTS) to a new, simpler income banded scheme, like many other councils in the region and country. This change would affect residents of working age (typically between 16 and 66) who claim CTS. It will not affect pensioners as Government makes the rules around the pensionable age scheme. The new scheme will be fairer, with some paying more and some paying less. Around 80% of people will be better off.

Survey Link

Read Frequently Asked Questions (FAQs)

Financial and other support for all

Support from the tenancy and financial support service


Why we want to change the Council Tax Support Scheme

  • To make it easier for residents to understand what they are entitled to
  • The introduction of Universal Credit, which is gradually replacing older benefits, has created the need for change. Universal Credit recipients need to provide us with a lot of information to claim Council Tax Support and are subject to frequent changes in their entitlement
  • To continue supporting those on the lowest incomes
  • To make sure our funds are going to those who need it most.

A simpler scheme is more efficient to run and saves us money. What is being proposed

We are proposing to move over to a banded scheme which will provide different levels of support depending on what band of income you are in. If your income changes, as long as it stays in the same band of income, you won’t see a change in the support you receive. It will help people most in need, on the lowest income.

Why should you take part in this consultation

  • No decisions have been made yet and we are consulting on options
  • Feedback from this consultation will help shape the final recommendations, which will be included in a report published before a Full Council meeting
  • If elected councillors agree to progress the CTS scheme changes, they would take effect in April 2026.

Useful information

  • Those on the lowest income will get 100% support (currently only 85%)
  • There will be no reduction in support if another person/non-dependent is living with you
  • Receiving income from personal Independence, Disability Living Allowance and Child Benefit.?
  • The capital allowance will reduce to £6000. If you have savings above this amount you will not be able to claim.
  • Around 80% of our current claimants will be better off and 75% will pay nothing.

Survey Link

Read Frequently Asked Questions (FAQs)

Financial and other support for all

Support from the tenancy and financial support service