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Proposed Changes to Council Tax Support Scheme 2025-26 consultation

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Have your say on proposals to change Barnet's Council Tax Support Scheme 2025/26


Overview

The Council Tax Support Scheme helps people on low incomes pay their Council Tax. Each year local authorities must review and agree their Council Tax Support Schemes for the following financial year. The scheme is funded by the council and we currently help 18,365 working age households on a low income to pay their Council Tax in Barnet.

However, in the context of the difficult financial challenges currently facing the council, we are considering changing the 2025/26 scheme that aims to introduce a more affordable scheme for the council, whilst still targeting support to those that need it most. Pension age claimants would be unaffected by the changes to the proposed scheme.

Before agreeing the proposed scheme we are keen to hear your views. The consultation is open to all Barnet residents and we are particularly keen to hear from Council Taxpayers, as well as those residents currently in receipt of Council Tax Support, businesses, community groups and voluntary organisations.


Why are we proposing a new Council Tax Support Scheme

The council has not changed the Council Tax Support Scheme since 2019 and the cost of the current scheme is now over £27 million.

Like all Local Authorities, the council has several financial challenges, and we are having to consider changes that allow for adequate savings whilst ensuring there is balance in supporting some of the most vulnerable residents in Barnet.

Barnet has the second largest population of any London borough and is also home to one of the highest populations of older people, many of whom require care. The council must continue to support its most vulnerable residents. That means there will be some tough decisions about our priorities and where our limited resources can be targeted most effectively. We may need to stop doing some things or do them differently to ensure we can continue providing the services we know that residents value and rely on.

The current scheme is costing the council £27.3m, £15.35m of this is the cost of the working age element for 2024/25 and this is projected to cost £15.64m for 2025/26, an increase of almost £0.3m. The proposed scheme will cost the council £12.8m for the working age element and therefore save £2.84m against the current scheme’s projection.


Who will be affected by the proposed changes

Pensioners are exempt and will continue to be assessed under the existing system, which can cover up to 100% of their Council Tax bill. The proposed changes to the current scheme will only affect working-age residents. Any changes to working-age claimants would take effect from 1 April 2025 and have been developed to deliver a fair, affordable scheme. If you are of working age and currently receive help through the Council Tax Support Scheme you are going to be directly affected. However, even if you do not claim Council Tax Support, as a Council Taxpayer you have an interest in ensuring the council is spending the money it receives through both government funding and through Council Tax receipts appropriately.

Modelling of the proposed scheme has found that there will be a reduction in our Council Tax Support caseload by 254 residents. This means that out of more than 18,000 residents of working age, that currently qualify for Council Tax Support, 254 will no longer qualify from April 2025 under the Proposed Scheme.

To find out more about the proposed changes and what they will mean for claimants, please read our consultation document. Further information is provided in the Cabinet Report and the Draft Council Tax Support Draft Scheme 2025-26.


How to have your say

Please take the time to read our consultation document and then give us your views on the proposals by completing the online questionnaire.

If you are unable to complete the questionnaires online and would like to request a paper copy or another format of the questionnaires, please call the Welfare Team on 0208 359 4242.


What happens after the consultation closes

The findings from the consultation will contribute to the final recommendations that are put forward to the Cabinet in February 2025. The council will then make a final decision on whether to adopt the proposed scheme.


Have your say on proposals to change Barnet's Council Tax Support Scheme 2025/26


Overview

The Council Tax Support Scheme helps people on low incomes pay their Council Tax. Each year local authorities must review and agree their Council Tax Support Schemes for the following financial year. The scheme is funded by the council and we currently help 18,365 working age households on a low income to pay their Council Tax in Barnet.

However, in the context of the difficult financial challenges currently facing the council, we are considering changing the 2025/26 scheme that aims to introduce a more affordable scheme for the council, whilst still targeting support to those that need it most. Pension age claimants would be unaffected by the changes to the proposed scheme.

Before agreeing the proposed scheme we are keen to hear your views. The consultation is open to all Barnet residents and we are particularly keen to hear from Council Taxpayers, as well as those residents currently in receipt of Council Tax Support, businesses, community groups and voluntary organisations.


Why are we proposing a new Council Tax Support Scheme

The council has not changed the Council Tax Support Scheme since 2019 and the cost of the current scheme is now over £27 million.

Like all Local Authorities, the council has several financial challenges, and we are having to consider changes that allow for adequate savings whilst ensuring there is balance in supporting some of the most vulnerable residents in Barnet.

Barnet has the second largest population of any London borough and is also home to one of the highest populations of older people, many of whom require care. The council must continue to support its most vulnerable residents. That means there will be some tough decisions about our priorities and where our limited resources can be targeted most effectively. We may need to stop doing some things or do them differently to ensure we can continue providing the services we know that residents value and rely on.

The current scheme is costing the council £27.3m, £15.35m of this is the cost of the working age element for 2024/25 and this is projected to cost £15.64m for 2025/26, an increase of almost £0.3m. The proposed scheme will cost the council £12.8m for the working age element and therefore save £2.84m against the current scheme’s projection.


Who will be affected by the proposed changes

Pensioners are exempt and will continue to be assessed under the existing system, which can cover up to 100% of their Council Tax bill. The proposed changes to the current scheme will only affect working-age residents. Any changes to working-age claimants would take effect from 1 April 2025 and have been developed to deliver a fair, affordable scheme. If you are of working age and currently receive help through the Council Tax Support Scheme you are going to be directly affected. However, even if you do not claim Council Tax Support, as a Council Taxpayer you have an interest in ensuring the council is spending the money it receives through both government funding and through Council Tax receipts appropriately.

Modelling of the proposed scheme has found that there will be a reduction in our Council Tax Support caseload by 254 residents. This means that out of more than 18,000 residents of working age, that currently qualify for Council Tax Support, 254 will no longer qualify from April 2025 under the Proposed Scheme.

To find out more about the proposed changes and what they will mean for claimants, please read our consultation document. Further information is provided in the Cabinet Report and the Draft Council Tax Support Draft Scheme 2025-26.


How to have your say

Please take the time to read our consultation document and then give us your views on the proposals by completing the online questionnaire.

If you are unable to complete the questionnaires online and would like to request a paper copy or another format of the questionnaires, please call the Welfare Team on 0208 359 4242.


What happens after the consultation closes

The findings from the consultation will contribute to the final recommendations that are put forward to the Cabinet in February 2025. The council will then make a final decision on whether to adopt the proposed scheme.

Page last updated: 02 Dec 2024, 08:44 AM