Summary: We cannot investigate this complaint about a housing benefit overpayment because the complainant appealed to the tribunal. We will not investigate the complaint about an overpayment of council tax reduction because the complainant could have applied for discretionary relief and then appealed to the tribunal.

The complaint

1. The complainant, whom I refer to as Mr X, complains about housing benefit (HB) and council tax reduction (CTR) overpayments which were caused by Council error. He says he is struggling to pay back the CTR.

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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 about the matter. (Local Government Act 1974, section 26(6), as amended)
4. The Social Entitlement Chamber (also known as the Social Security Appeal Tribunal) is a tribunal that considers housing benefit appeals. (The Social Entitlement Chamber of the First Tier Tribunal)
5. The Valuation Tribunal deals with appeals against decisions on council tax liability and council tax support or reduction.

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How I considered this complaint

6. I read the complaint and the Council’s response. I got some additional information from the Council and I invited Mr X to comment on a draft of this decision.

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What I found

Housing benefit overpayments

7. If a council pays too much housing benefit to someone it will usually ask them to repay it. The law says an overpayment is recoverable unless it was caused by an official error and it was not reasonable to expect the person to realise they were receiving too much benefit. If someone disagrees with a decision that they must repay an overpayment they can appeal to the tribunal.

Council tax reduction overpayments

8. The CTR policy says all overpayments are recoverable. The Council adds the overpayment to the council tax. The Valuation Tribunal cannot consider appeals about CTR overpayments because all overpayments are recoverable. The person can, instead, apply for discretionary relief from the hardship scheme; this can support people who are in financial hardship. The person can appeal to the Valuation Tribunal against a decision to refuse an application for council tax discretionary relief.

What happened

9. The Council asked Mr X to repay a HB overpayment of £13,006 and a CTR overpayment of £3967. The overpayment arose because the Council used the wrong earnings for the claim. The Council told Mr X that although the overpayment arose from an official error it was recoverable because he should have seen, from the benefit decision letters, that the Council was using the wrong income figures. The Council told Mr X the Valuation Tribunal was unlikely to hear an appeal but he could apply for discretionary relief.
10. Mr X appealed to the HB tribunal. The tribunal was due to hear the appeal in early June. Mr X also appealed to the Valuation Tribunal; the tribunal struck out the appeal because it had no power to consider the issues. The Council says Mr X has not applied for discretionary relief.
11. Mr X says he has been forced to pay £67 a week towards the arrears which he cannot afford.

Assessment

12. I cannot investigate the HB overpayment because Mr X appealed to the tribunal. The law says we cannot investigate any matter that is the subject of an appeal to the tribunal. This restriction applies even if someone disagrees with the outcome of an appeal. The tribunal will decide if Mr X has to repay the overpayment.
13. I will not investigate the CTR overpayment because Mr X could have applied for discretionary relief to reduce the overpayment. Mr X could have appealed to the Valuation Tribunal if the Council decided not to award discretionary relief. Mr X could submit a claim for discretionary relief if the council tax situation is causing financial hardship.

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Final decision

14. I cannot start an investigation because Mr X appealed to the tribunal and because he could have applied for discretionary council tax relief.

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Investigator's decision on behalf of the Ombudsman