Summary: Miss X complains the Council’s policy for determining how much council tax reduction someone should receive is unfair and does not accurately reflect her universal credit payments. She says this means she receives less of a reduction in her council tax and the matter has had a negative effect on her mental health. We do not find fault in the Council’s actions. It is entitled to design its own policy to administer its council tax reduction scheme.

The complaint

1. Miss X complains the Council’s policy for how it decides how much council tax reduction to award someone is unfair and does not accurately reflect her universal credit payment for housing costs.
2. She says this means she receives less council tax support and had to disclose her personal expenses to receive a discretionary top-up payment, which she was not happy to do.
3. Miss X also says the matter has had a negative effect on her mental health.

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The Ombudsman’s role and powers

4. We investigate complaints about ‘maladministration’ and ‘service failure’. In this statement, I have used the word fault to refer to these. We must also consider whether any fault has had an adverse impact on the person making the complaint. I refer to this as ‘injustice’. If there has been fault which has caused an injustice, we may suggest a remedy. (Local Government Act 1974, sections 26(1) and 26A(1), as amended)
5. If we are satisfied with a council’s actions or proposed actions, we can complete our investigation and issue a decision statement. (Local Government Act 1974, section 30(1B) and 34H(i), as amended)
6. The Valuation Tribunal deals with appeals against decisions on council tax liability and council tax support or reduction.
7. The law says we cannot normally investigate a complaint when someone can appeal to a tribunal. However, we may decide to investigate if we consider it would be unreasonable to expect the person to appeal. (Local Government Act 1974, section 26(6)(a), as amended)

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How I considered this complaint

8. I read the complaint and the Council’s responses to Miss X.
9. I researched relevant law and the Council’s policy.
10. I invited Miss X and the Council to comment on a draft decision and considered any comments made in response.

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What I found

11. Council tax reduction (CTR, also known as council tax support) is a discount, not a benefit. Each council should have its own scheme. (Section 13A Local Government Finance Act 1992)

The Council’s policy

12. The Council’s policy detailing how it administers its council tax reduction scheme is published on its website.
13. It says that when determining the income of an applicant for the purpose of how much council tax reduction will be provided, the local authority may adjust the amount of income to take account of the award of universal credit, and a sum determined as an amount for housing costs.

What happened

14. Miss X is in receipt of universal credit. She said the Council is using a formula to calculate the housing element of her universal credit payment which makes her income seem higher, and therefore awards her less council tax reduction.
15. She said the formula is not published in the Council’s policy and it has only been revealed when she has asked for it.
16. Miss X said that due to the Council’s policy, she had to apply for a discretionary top-up payment to assist in paying her council tax, as she did not want her outstanding bills to escalate. Miss X was unhappy that she had to provide details of her personal expenses to receive the payment.
17. Miss X complained to the Council and said it should disregard the total amount of her universal credit that is allocated for her rent.
18. The Council responded that the operation and calculation of income rules in the council tax reduction scheme is for each individual council to determine and apply. It provided the formula it uses for working out how much council tax reduction is provided to someone who receives universal credit.
19. The Council said it developed its council tax reduction scheme to allow up to 100% support to those in the most need. It also said that any individuals who suffer hardship because of its policy will be considered for a discretionary payment. The Council said Miss X’s case had been considered for this payment and that it had granted a top-up to ensure she is not unfairly disadvantaged by the council tax reduction scheme operated by the Council.

Analysis

20. The Council is entitled to design its own policy to decide what level of council tax reduction it gives to those living in its area who are eligible.
21. When Miss X raised her concern, the Council explained what formula it uses and explained how it worked out the council tax reduction amount she receives.
22. The Council has also provided Miss X with a discretionary payment to ensure she does not suffer financial hardship because of its policy. I appreciate Miss X did not like having to provide her personal expense details to receive the payment, but the Council is entitled to ask for such details when considering the discretionary payment application.
23. The formula the Council uses to work out how much council tax reduction it provides to someone in receipt of universal credit is not published in its policy, but reference to a sum being determined for housing costs is. Whilst the formula may be useful to some people when reading the policy, it may also be confusing to others without an additional explanation. There will also be some people who can receive 100% support and the formula would not apply to them. There is no fault in the Council adopting this approach not to publish the formula in its policy document, providing it explains the formula and answers any questions about it by anyone affected, as it has done in this case.
24. For the reasons listed in paragraphs 20 to 23, I do not find fault with the Council’s actions.
25. In response to an earlier draft decision, Miss X said she did not think the Council was correctly applying its policy when determining how much council tax reduction she should receive. It is reasonable for Miss X to appeal that matter to the Valuation Tribunal, which is the appropriate place for the issue to be considered.

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Final decision

26. I close this case without a finding of fault against the Council for the reasons detailed in this decision statement.

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Investigator's decision on behalf of the Ombudsman