Council Tax is set to rise by a hefty 2.99% in April, after Southwark Council voted for the changes last month.
The hike means families living in a Band D property will have to find an extra £67 each year, with their council tax bill now totalling £1,595.
A Band H home will have to pay £3,189 every year from 1 April – up by £133 on the previous financial year.
The majority of boroughs in London are planning on increasing their council tax this year.
Neighbouring Lambeth and Lewisham have also increased bills by 2.99%, which is the maximum permitted by the government.
This increase comes as families are already expecting their monthly bills to go up in April when the energy price cap is lifted and National Insurance contributions rise.
Added to this is the war in Ukraine which will push up living costs even further, as the price of fuel soars.
Southwark Council has said the rise is necessary in order to ensure a “balanced budget” and “protect services for our most vulnerable residents”.
“The 2022-23 budget has been prepared in the context of the continuing COVID-19 pandemic,” read the council’s website.
“In addition, the council has also had to manage the continually increasing demands and pressures on front-line services, particularly adult social care, children’s services, homelessness services and welfare support, as well as fund local government pay and higher inflation costs,” it added.
Council Tax, along with Business Rates, fees and government grants, is used to fund vital local services, such as education, libraries and rubbish collection.
April’s 2.99% rise is formed of a 1.99% increase to Council Tax and a 1% increase to the adult social care precept, in line with government guidance.
The adult social care precept is used to fund the care of Southwark’s elderly and disabled residents.
Income generated from this charge is ring-fenced and can only be spent by the council on adult social care services.
An additional £1.3 million will be earnt for adult social care from the increased precept.
The council said government cutbacks had forced them to increase Council Tax.
“Since 2010-11, like other councils, Southwark has experienced significant reductions in government funding,” they said.
“Despite the challenges, the council remains committed to protecting services for the most vulnerable people, cutting waste and mitigating as much of the impact of cuts as possible,” it added.
Last month The News revealed that Southwark has seen the largest council tax hike in London since 2017 with bills rising by a whopping 36.8%.
However, the council claimed this is a “theoretical” increase due to the number of new homes it has built in the borough, and does not represent an increase for individual households.