Summary: We will not investigate Mr X’s complaint about the Council reviewing his housing benefit claim and wrongly recording his working tax credit as self-employed income. This led to an incorrect decision that he was no longer eligible for housing benefit and council tax support. This is because an investigation would not lead to any further findings or outcomes. In addition, there is insufficient evidence of fault.

The complaint

1. Mr X complains the Council was wrong to review his housing benefit claim. He also says when the Council reviewed his claim, it incorrectly recorded his working tax credit as self-employed income. This led to an incorrect decision that he no longer qualified for housing benefit and council tax support.

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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 an investigation if we decide:

• there is not enough evidence of fault to justify investigating, or
• we could not add to any previous investigation by the organisation, or
• further investigation would not lead to a different outcome.

(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.
4. I considered the Ombudsman’s Assessment Code.

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My assessment

5. The Council explained Mr X’s housing benefit claim had been selected for a case review by the Department of Work and Pensions (DWP). The Council started the review in February 2024 and asked Mr X to provide some evidence. The information was provided to the Council by Mr X in March and April 2024.
6. At the end of April 2024, the DWP provided an electronic notification of Mr X’s tax credit award to the Council. The Council said its processing system automatically imported Mr X’s working tax credits into the Council’s system without the disability element. This resulted in the incorrect removal of the disability premium from Mr X’s benefit award. This was the first error in the Council’s handling of Mr X’s claim.
7. In mid-May, an officer reviewed the evidence provided by Mr X and updated his claim. The officer corrected the tax credit award to include the disability element. Therefore, the Council corrected its first error within a month.
8. However, during their review, the officer incorrectly recorded Mr X’s working tax credit income as part of his gross self-employed income. This resulted in the system identifying a housing benefit overpayment had been made to Mr X for just under £3000 for the period April 2023 to April 2024. This was the Council’s second error.
9. At the end of July 2024, the Council corrected Mr X’s claim to correctly reflect nil self employed income. This led to the housing benefit overpayment being cleared and the remaining amounts paid to Mr X’s landlord. Therefore, the Council corrected its second error within two months.
10. An investigation is not justified as it would not lead to any further findings or outcomes. The Council has accepted fault with its handling of Mr X’s housing benefit claim and council tax support and apologised to Mr X for the distress and frustration caused.
11. I am satisfied that the accepted fault will have caused Mr X some distress and frustration. I have considered whether any further remedy is appropriate in the circumstances. However, given the time taken to correct the faults was not so significant, I am satisfied no further remedy is necessary.
12. I also note Mr X is unhappy that the Council reviewed his housing benefit claim in the first place. He says had the Council not done so, the faults would never have occurred. However, the Council has provided a clear explanation for why Mr X’s claim was reviewed. This was due to a request from the DWP. An investigation is not justified as we are not likely to find fault with the Council as it was reasonable for it to complete a review of the claim given it received a request for it to do so.

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Final decision

13. We will not investigate Mr X’s complaint because an investigation would not lead to any further findings or outcomes. In addition, there is insufficient evidence of fault.

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Investigator's decision on behalf of the Ombudsman