Barnet Council will “reassess the landscape” of its council tax support scheme amid increasing costs.
A council report has shown Barnet’s council tax support expenditure increased from £21million in 2019/20 to £27m in 2024/25.
Speaking at an overview and scrutiny committee on Wednesday (18th September) committee member Ella Rose asked what had driven this increase as it “was assumed to be a pandemic effect but it appears to have stuck”.
Cllr Rose said: “Is this due to greater applications for support, people dropping out of the job market; what drove this and what can we do to support our residents on this?”
Ammar Naqvi, the council’s cabinet member for finance, responded to say he didn’t know the “specific” reasons but said the availability of more information was one.
He said: “Our benefits calculator, for example, has accrued a huge amount of data to show eligibility, so that is one reason why you’ll see a precipitous increase in usage, because people have now got access to tools that show them that they’re more entitled to different types of benefits.”
As part of ‘Our Plan for Barnet 2023 to 2026’, information on how the council will deliver its services to residents, the civic centre consulted on its council tax support scheme and “engaged with residents as to what the threshold for adequate earning levels should be”.
Cllr Naqvi said: “As we revise Our Plan for Barnet it’s entirely proper that we reassess the landscape that Barnet currently exists in as we move in 2026.”
The council tax report compared Barnet’s scheme to neighbouring boroughs. Barnet’s maximum award level is 72%, while Brent and Camden offer up to 100%, but Enfield only 50%.
Barnet Council had considered changing its maximum support level to 100% in 2023, for those with no earnings, but following a review of the implementation costs, along with budget setting, the change was rejected at full council in April.
Allan Clark, the council’s head of finance, said: “With the comparison with other boroughs, one of the things we’ve got to bear in mind with the different schemes is, within Barnet we look at peoples’ earned income or self-employed income only.
“Some of the other schemes that are potentially more generous, look more generous at first sight, but take into account other incomes, working tax credits, certain disabilities benefits etc.”
Following discussion the committee recommended the council consider using residents’ income instead of earnings to measure entitlement.
Councillor Emma Whysall said using earnings, a less popular choice with other boroughs, over income, meant residents with “property portfolios” could qualify as this might not class as an earning.
Committee chair Danny Rich recommended reviewing how the council’s seven tax bands were “drawn together”.
Local Democracy Reporter Grace Howarth covers the London boroughs of Barnet, Enfield and Haringey as part of the Local Democracy Reporting Service (LDRS), reporting on local government, housing, planning and community issues.
