Summary: The Ombudsman cannot investigate this complaint about the Council’s decision that the complainant is not entitled to Council Tax Reduction because he has capital above £16,000. This is because the complainant appealed to the Valuation Tribunal.

The complaint

1. The complainant, whom I refer to as Mr X, complains that the Council ended his Council Tax Reduction (CTR) even though his income has not increased. He says it is wrong to penalise people who have been frugal and saved money.

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The Ombudsman’s role and powers

2. The Local Government Act 1974 sets out our powers but also imposes restrictions on what we can investigate.
3. We cannot investigate a complaint if someone has appealed to a tribunal or a government minister or started court action about the matter. (Local Government Act 1974, section 26(6), as amended)
4. The Valuation Tribunal deals with appeals against decisions on council tax liability and council tax support or reduction.
5. We investigate complaints about councils and certain other bodies. We cannot investigate the actions of the Department for Work and Pensions (DWP). (Local Government Act 1974, sections 25 and 34A, as amended)

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How I considered this complaint

6. I read the complaint and the decision made by the Valuation Tribunal. I considered comments Mr X made in reply to a draft of this decision.

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What I found

Council policy for Council Tax Reduction

7. The policy says people of pensionable age cannot receive CTR if they have savings above £16,000 unless they also receive a benefit called Pension Credit (PC). PC is administered by the DWP. The DWP is not part of the Council.

What happened

8. The DWP ended Mr X’s entitlement to PC in April 2019 because he had savings above £16,000. Previous benefit rules, which the government abolished, meant Mr X had been entitled to PC and CTR until 2019.
9. In April 2019 the Council ended Mr X’s entailment to CTR because he had savings above £16,000 and was not getting PC.
10. Mr X disagreed with the Council’s decision and appealed to the Valuation Tribunal. He stressed that he lives on a small income, which had not increased, and he was being punished for saving and living within his means.
11. The tribunal dismissed Mr X’s appeal and upheld the Council’s decision to cancel the CTR claim because Mr X has savings above £16,000. The tribunal said Mr X could complain to the Council or the Ombudsman if he thought the Council had not administered the claim correctly.
12. Mr X continues to disagree with the decisions that he is not entitled to PC or CTR due to his savings. He disagrees with the way the DWP and the Council assess savings.

Assessment

13. The key point is that Mr X disagrees with the decision that he is not entitled to CTR. I cannot start an investigation because Mr X appealed to the tribunal. The law says the Ombudsman cannot investigate any matter that has formed part of an appeal to the tribunal. In addition, Mr X has not claimed that the Council has mismanaged any part of the claim; it is simply that he disagrees with the policy that people with savings above £16,000 cannot claim CTR. And, as I have said, that issue has been considered by the tribunal and there is nothing to suggest the Council did not administer the claim correctly.
14. It is for the Council, not the Ombudsman, to decide the terms of its CTR policy. If Mr X thinks people with savings should not be excluded from CTR, then he would need to lobby his local councillors for a change to the policy. But, it would be for the Council, not the Ombudsman, to decide whether to change the policy.
15. Mr X disagrees with the decision to end his entitlement to PC. The DWP made the decision to end his PC claim and I have no power to investigate any decision made by the DWP. Mr X would need to lobby his MP if he thinks the capital rules should be changed for benefits administered by the DWP.

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Final decision

16. I cannot start an investigation because Mr X appealed to the tribunal. In addition I have no power to change the capital rules for people claiming benefits.

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Investigator's decision on behalf of the Ombudsman