Summary: Mr H complained the Council gave him incorrect advice to apply for universal credit. Mr H said the Council’s advice had caused him a financial loss. We have found no fault in the Council’s service.

The complaint

1. Mr H is complaining that the Council advised him to switch from his existing benefits to universal credit, when he applied for housing benefit. Mr H says he has suffered a financial loss by following the Council’s advice.

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The Ombudsman’s role and powers

2. 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 significant injustice, or that could cause injustice to others in the future we may suggest a remedy. (Local Government Act 1974, sections 26(1) and 26A(1), as amended)
3. If we are satisfied with an organisation’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)

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How I considered this complaint

4. I considered the information provided by Mr H and the Council, and the relevant law and guidance.
5. Mr H and the Council have had the chance to provide any relevant information before a final decision was made. All information provided has been considered.

The relevant Law and policy

6. The Welfare Reform Act 2012 rolls together several benefits under the umbrella of universal credit. This includes housing payments which were previously met by housing benefit. There are very few circumstances in which people can make a new claim for Housing Benefit. One such circumstance is when someone is receiving a severe disability premium as part of an existing housing benefit payment, and the claimant moves house within the council’s area.
7. If the claimant does not have an existing housing benefit when they move, or moves to a different council’s area, a new claim is needed. New claims will be for universal credit. New claims for housing benefit no longer exist.
8. The Council’s complaints procedure states that where a complainant is unhappy with the Council’s first response to a complaint, they may escalate the complaint. The Council’s website says that where complaints are escalated to stage two of its process, the council will conduct a further thorough investigation and provide a full response within 20 days.

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What I found

What happened

9. In 2023, Mr H was living in temporary accommodation in the Council’s area. The Council offered Mr H permanent accommodation, which he moved into in March 2023. He sought advice from the Council about what financial support he could apply for. The Council advised him to apply for universal credit, which he did.
10. Mr H later complained that this advice was detrimental to him as he could have received more support if he had applied for housing benefit. He said he received less funding under universal credit than he would have received through housing benefit.
11. The Council says its advice was correct as Mr H had not been receiving housing benefit since 2017. It confirms that when he received housing benefits, this included the severe disability premium.
12. Mr H complained to the Council in April 2023. The Council provided a stage one response more than 15 weeks later. It provided its stage two response more than 14 weeks after Mr H asked.

Analysis and findings

13. The evidence shows universal credit had been introduced in Mr H’s area when he asked for advice. So, the advice to apply for this was appropriate, unless Mr H was exempt or could transfer an existing housing benefit claim to his new property.
14. The Council and Mr H dispute whether he was in receipt of housing benefits at the time the Council informed him to apply for universal credit.
15. I have asked Mr H for evidence he was in receipt of housing benefit for his temporary accommodation at the time he was moved to his new regeneration property in March 2023, but this has not been provided.
16. Without evidence Mr H had a live housing benefit claim, I cannot say the Council advice was incorrect. Based on the evidence available, I have therefore not found the Council at fault.
17. However, I have also seen the Council failed to follow its own complaints handling procedure. This is fault. The Council apologised for its delays and explained it was overhauling its process, which was the cause of the delay.
18. Given the Council’s response did not change the sum Mr H was receiving, there has been no financial impact caused by the delay. Further, as Mr H could have brought the complaint to this office on the basis the Council had not provided a response to him, I am of the view that no significant injustice was caused as a direct result. This is not to say it would not have caused frustration, rather that Mr H would most likely always have had to come to this office, and that this could have been done regardless of when the Council eventually responded.
19. I have not recommended the Council make any changes to how it is handling complaints as it has implemented a new process since it dealt with Mr H’s complaint.

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Final decision

20. We have found no fault in the Council’s advice. However, the Council failed to follow its complaints process, which is a fault in its service.

Investigator’s final decision on behalf of the Ombudsman

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Investigator's decision on behalf of the Ombudsman