The challenge

Like many local councils, the London Borough of Barnet was seeing growing numbers of residents struggling to keep up with council tax payments alongside other household costs. While the council had already launched a well-established Money Worries campaign to support residents with income maximisation, debt management and cost of living pressures, some residents remained disengaged and with little hope.

These were often the most complex cases. Residents with multiple years of council tax arrears, with low or irregular incomes, and wider vulnerabilities such as rent and energy debt. Fear of enforcement and a lack of trust meant many had stopped engaging altogether. As a result, debts escalated year on year, and residents continued to miss out on the support they were entitled to.

Barnet needed a way to extend the reach of their Money Worries campaign, and to proactively reach these residents earlier, understand their circumstances, and reconnect them to support without increasing pressure on their own teams.

The solution

Barnet Council partnered with Sigma Connected to pilot our award-winning ReachOut service with their residents. ReachOut is a confidential and impartial engagement service designed specifically for people in problem debt who are not responding to standard recovery activity.

Rather than collecting debt, ReachOut focuses on support. Trained Pathfinders contact residents with an offer of help, creating a safe, no-blame environment where people feel able to talk openly about their situation. This approach allows ReachOut to engage with residents who the council has been unable to reach directly.

During the pilot, Barnet provided ReachOut with a file of 505 residents with the highest levels of council tax arrears, totalling over £5m. Many had not made a payment for months and were known to be struggling with wider household bills.
ReachOut worked with residents to:

• understand individual circumstances and identify vulnerability
• guide residents to free grants, advice and specialist third-party support, including debt advice charities
• encourage and support the use of Barnet’s own benefits calculator to check entitlement
• raise awareness of the council’s own support and payment options
• warm-transfer residents directly back to council teams to begin resolving their debt

Results

The pilot delivered excellent outcomes for both residents and the council.

ReachOut achieved positive engagement with 29% of residents during the pilot. These were residents with an average council tax debt of over £10,000, many of whom had not engaged for over 200 days.

Of the 505 cases:

• 101 residents were warm-transferred directly to Barnet’s team
• Within one month of contact almost £57k was paid in one-off payments alone
• residents received an average of 3-4 referrals or signposts to third-party support
• engagement helped prevent further recovery action in many cases

The impact on income maximisation was particularly significant. Use of Barnet Council’s financial calculator increased by 321 uses. Analysis showed that:

• 83.25% of residents not previously claiming benefits were entitled to support
• 70.79% of existing benefit claimants were entitled to additional income
• total additional benefit entitlement identified was £1.58m
• the average extra monthly entitlement per resident was £792

By combining early, empathetic engagement with practical support and clear routes back into council services, Barnet was able to improve outcomes for residents while also delivering a healthier long-term position for council tax recovery.

ReachOut proved that earlier intervention, trust and the right conversations can make a measurable difference, helping residents access the support they deserve and preventing debt from spiralling further.

ReachOut quote

“We know that when our residents struggle to pay their council tax, it’s rarely a standalone issue. It’s often linked to wider financial pressures, and without early support, debt can quickly escalate.

“ReachOut gave us a trusted, non-judgemental way to re-engage residents who had stopped responding, helping them reconnect with council support and begin addressing their arrears. Many also discovered they were entitled to additional financial help – in some cases nearly £800 a month – making a huge difference to their situation.”

Nick Houlton IRRV (HONS)
Finance Manager: Revenues and Benefits, Barnet Council