Summary: We will not investigate this complaint about the Council refusing to pay interest on a council tax credit on the account of the complainant’s late relative. There is insufficient evidence of fault causing any significant injustice to Mrs X.

The complaint

1. Mrs X complained about the Council keeping a credit of council tax in her mother’s account for four years from 2020. When she finally asked for the amount to be refunded on her mother’s death, she believed she should be entitled to interest on the sum which the Council had not disclosed previously. The Council has refused to do this.

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The Ombudsman’s role and powers

2. We investigate 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 or continue an investigation if we decide:

• there is not enough evidence of fault to justify investigating, or
• any fault has not caused injustice to the person who complained, or
• any injustice is not significant enough to justify our involvement.

(Local Government Act 1974, section 24A(6), as amended, section 34(B))

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How I considered this complaint

3. I considered information provided by the complainant and the Council’s response.
4. I considered the Ombudsman’s Assessment Code.

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My assessment

5. Mrs X says the Council transferred a council tax credit form her late father’s account to her mother’s in 2020. Because her mother was exempt from council tax payments the amount remained on account until she died in 2024. Mrs X says her the Council did not notify mother or her about the credit until she asked for an account balance on her mother’s death in 2024. She believes the Council should pay interest on the credit on the account.
6. The Council says it issues demands for council tax each financial year but this does not include a credit statement from previous years unless it is to be credited to the existing balance. Because Mrs X’s mother was exempt from paying council tax the demands did not disclose a credit. Council’s as billing authorities have no provision in the legislation for charging or paying interest on either arrears owed to them or refunded amounts to taxpayers.
7. In this case the outstanding credit on the account was a small amount and the interest would have been less than £5 per year had it been payable.

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Final decision

8. We will not investigate this complaint about the Council refusing to pay interest on a council tax credit on the account of the complainant’s late relative. There is insufficient evidence of fault causing any significant injustice to Mrs X

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Investigator's decision on behalf of the Ombudsman