London Borough of Hackney (22 012 104)

Category : Benefits and tax > Council tax support

Decision : Upheld

Decision date : 12 Jan 2023

The Ombudsman's final decision:

Summary: We will not investigate this complaint about a benefit overpayment demand that was raised in error. This is because the Council has provided a fair response and there is not enough remaining injustice.

The complaint

  1. The complainant, whom I refer to as Ms X, complains about the amount of compensation the Council awarded after it wrongly closed her council tax account and raised an overpayment of Council Tax Reduction (CTR). Ms X wants an apology and more compensation.

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The Ombudsman’s role and powers

  1. The Ombudsman investigates complaints about ‘maladministration’ and ‘service failure’, which we call ‘fault’. We must also consider whether any fault has had an adverse impact on the person making the complaint, which we call ‘injustice’. We provide a free service, but must use public money carefully. We do not start an investigation if we decide:
  • the Council has provided a fair response, or
  • any injustice is not significant enough to justify our involvement.

(Local Government Act 1974, section 24A(6))

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How I considered this complaint

  1. I considered information provided by Ms X and the Council. This includes the complaint correspondence. I also considered our Assessment Code and comments Ms X made in reply to a draft of this decision.

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My assessment

  1. The Council received information from a third party which led to it closing Ms X’s council tax account in error. The information it received was that a new tenant had moved in.
  2. A few months later the Council found out Ms X had not moved and still lives in the property. It reopened the account and reinstated the single person discount and her CTR. An error occurred during this process which led to the Council sending Ms X a letter asking her to repay an overpayment of £498. The error was identified on the same day and the overpayment cancelled. The Council told Ms X on the same day that the overpayment had been cancelled. In response to her complaint the Council apologised, explained what had gone wrong, and awarded £25 compensation.
  3. The Council closed Ms X’s council tax account in error and wrongly asked her to repay £498. I will not, however, start an investigation because the Council has provided a fair remedy and, once this is taken into account, there is not enough remaining injustice to require an investigation. I appreciate Ms X would like more compensation but the Council has confirmed she has not suffered a financial loss, she was promptly told the overpayment had been cancelled, and her council tax and CTR were reinstated at the same rate as before the errors occurred.

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Final decision

  1. We will not investigate this complaint because the Council has provided a fair remedy and there is not enough remaining injustice.

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Investigator's decision on behalf of the Ombudsman

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