Summary: We will not investigate this complaint about a Council tax recovery because there is a right of appeal to a Valuation Tribunal.

The complaint

1. Mr X complains that the Council delayed telling him of a decision to reduce his Council tax reduction so that an “overpayment” of Council tax deduction was made, leading to a recovery by the Council.

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The Ombudsman’s role and powers

2. The law says we cannot normally investigate a complaint when someone can appeal to a tribunal about the same matter. However, we may decide to investigate if we consider it would be unreasonable to expect the person to appeal. (Local Government Act 1974, section 26(6)(a), as amended)
3. 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

4. I considered information provided by the complainant.
5. I considered the Ombudsman’s Assessment Code.

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My assessment

6. Mr X says that his Council tax deduction was reduced by the Council following information provided by the DWP in October 2022 relating to his claim from April 2022. This resulted in an increased Council tax bill which the Council is seeking to recover.
7. Council tax reduction (CTR, also known as council tax support) is a discount, not a benefit. If a council gives someone too much CTR it can reduce the CTR and so increase the council tax owed. We call these changes CTR reversals. Sometimes a council creates reversals because it has miscalculated the CTR, perhaps ignoring information it had, or using information it should have not used.
8. If the council’s CTR Scheme says how it deals with challenges to reversals (sometimes called ‘overpayments’) a claimant can appeal to the Valuation Tribunal. If the scheme does not say how the council will deal with CTR reversals the claimant cannot appeal.
9. Councils can award discretionary CTR to reduce a claimant’s council tax, using their powers under S13A(1)(c) of the Local Government Finance Act 1992 (as amended). Each council should have its own scheme. Somebody experiencing financial hardship because of a decision about wrongly paid council tax reduction, can apply for a discretionary reduction. Appeals about those decisions are to the Valuation Tribunal.
10. I consider therefore that right of appeal exists to the Valuation Tribunal if the Council decides not to make a discretionary payment. The tribunal is an independent, expert body whose decisions are binding on the Council. I therefore consider that it would be reasonable to pursue an appeal in this case.

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Investigator's decision on behalf of the Ombudsman