South Hams District Council (19 005 785)

Category : Benefits and tax > Council tax

Decision : Upheld

Decision date : 06 Jan 2020

The Ombudsman's final decision:

Summary: Mr B complains that the Council did not properly deal with a complaint about his Council Tax. The Council was at fault because it did not follow its Corporate Debt Policy. Mr B lost an opportunity to prevent the debt being passed to enforcement agents. The Council has agreed to bring Mr B’s debt back to the Council, refund Mr B any enforcement agents charges to date, agree a repayment strategy and review its policy.

The complaint

  1. The complainant, whom I shall refer to as Mr B, complains the Council did not deal with his Council Tax properly because it did not;
    • explain the backdating of Council Tax to him.
    • take proper account of his vulnerability when dealing with him.
    • take back the outstanding amount from enforcement agents and arrange a payment plan.

Mr B says he has suffered stress because of the constant threat of enforcement agents and this has impacted on his mental health.

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The Ombudsman’s role and powers

  1. We investigate complaints about ‘maladministration’ and ‘service failure’. In this statement, I have used the word fault to refer to these. We must also consider whether any fault has had an adverse impact on the person making the complaint. I refer to this as ‘injustice’. If there has been fault which has caused an injustice, we may suggest a remedy. (Local Government Act 1974, sections 26(1) and 26A(1), as amended)
  2. If we are satisfied with a council’s actions or proposed actions, we can complete our investigation and issue a decision statement. (Local Government Act 1974, section 30(1B) and 34H(i), as amended)
  3. When considering complaints, if there is a conflict of evidence, we make findings based on the balance of probabilities. This means that we will weigh up the available relevant evidence and base our findings on what we think was more likely to have happened.

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How I considered this complaint

  1. I have spoken to Mr B about his complaint and considered the information he has provided to the Ombudsman. I have also considered the Council’s response to his complaint and its response to my enquiries.
  2. I gave the Council and Mr B the opportunity to comment on my draft decision. I have considered any comments received.

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What I found

The Law and Guidance

  1. The Local Government Finance Act 1992 gives local authorities the power to levy and collect a dwelling tax. This is known as ‘Council Tax’. A person is liable for Council Tax on each day they are resident in a chargeable dwelling.
  2. The Council Tax (Chargeable Dwellings) Order 1992 says “where a single property contains more than one self contained unit… the property shall be treated as comprising as many dwellings as there are such units included in it and each such unit shall be treated as a dwelling.
  3. The Valuation Office Agency's (VOA) technical manual for assessing domestic property for Council Tax says the effective date for Council Tax is when it comes into existence.

The Council’s Corporate Debt Policy

  1. The Council’s Corporate Debt Policy sets out its approach to collecting and recovering debt.
  2. The policy lists action that will be taken following “the exhaustion of all prescribed/standard recovery efforts e.g. after written, electronic, verbal contacts and reminders have failed to illicit a sustainable payment response from the debtor.” The Council can instruct enforcement agents or debt recovery companies to recover the debt on its behalf.
  3. The Policy says consideration will be given to the vulnerability of a customer before the Council instructs enforcement agents or debt recovery company. If the Council becomes aware of a vulnerable person once the debt has been passed to an enforcement agent or debt recovery company it will withdraw and bring the debt back to the council.

What happened

  1. Mr B lived in a new dwelling which had not been valued for Council Tax. The Council requested a valuation but Mr B moved out before the Council could send him a bill.
  2. The Council sent the bill and subsequent enforcement documents to another address it was told Mr B lived at. When it received no reply, the Council passed the debt to enforcement agents.
  3. Mr B complained to the Council that he was not liable and said he was unhappy that the debt had been passed to enforcement agents. The Council did not uphold his complaint and explained why he was liable.

Analysis

  1. Mr B’s home became a chargeable dwelling for Council Tax purposes when it was completed and ready for occupation. This was before Mr B lived there. Mr B confirmed he began living at the property in February 2017. Following enquiries, the Council accept that Mr B left the property in October 2017. Mr B was liable for Council Tax between February and October 2017. The Council charged Mr B correctly for his Council Tax. This is not fault by the Council.
  2. The Council wrote to Mr B in August 2017 to tell him he would have to pay Council Tax. The letter states Mr B “will be” liable for Council Tax at the property and that Council Tax would be backdated to the time he was first liable. The wording of the first part of the letter is in the future tense. Although the later paragraph says the Council Tax bill will be backdated, it does not say when it would be backdated to. While it is not inaccurate, the letter is not clear either. A subsequent email sent by the Council to Mr B in October does not clearly say when Mr B’s Council Tax would be backdated to.
  3. Mr B left the property before the Valuation Office Agency was able to value the property. The Council was therefore unable to assign a Council Tax band to it and issue Mr B with a bill for the period he was liable, before he left the property.
  4. The Council used information provided by the Department for Work and Pensions about where Mr B was living to send him his Council Tax bill after the valuation had been completed. Mr B says he never lived at this address and he did not receive the Council Tax bill and subsequent enforcement letters and documents sent there. On the balance of probabilities, Mr B did not receive the Council Tax bill until enforcement agents made contact with him because he moved from the address held by the DWP.
  5. However, the Council also held an email address for Mr B. It did not attempt to use this to contact him after receiving no response to the Council Tax bill it sent. The Council did not act in accordance with its Corporate Debt Policy. This is fault by the Council. If the Council had contacted Mr B by email about his bill and any subsequent communications, he would have been able to deal with it before enforcement agents were instructed by the Council.
  6. When Mr B complained, the Council confirmed the dates it considered he had been liable for Council Tax and asked him to provide evidence if they were wrong. It revised the end date of his liability after making enquiries with the landlord. Although its earlier communications were unclear, the Council provided a very clear explanation about the backdating of Council Tax to Mr B.
  7. Mr B raised concerns about his mental health and depression in February, after the Council had provided a clear explanation to him. The Council acknowledged Mr B’s concerns and offered advice. It did not change its approach to dealing with Mr B’s debt. The Council says it has no official definition of vulnerable and vulnerability but has provided its interpretation of ‘vulnerable’ and ‘vulnerability’. The email evidence does not show the Council made any consideration of whether Mr B was vulnerable under its policy at the time. This is fault by the Council. Mr B’s vulnerability should have been considered.

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Agreed action

  1. To remedy the injustice caused by the fault I have identified the Council has agreed to take the following action within four weeks of this decision:
    • withdraw Mr B’s debt from the enforcement agent.
    • ensure that Mr B does not pay any enforcement agent charges.
    • if not already completed, re-calculate Mr B’s Council Tax liability.
    • allow Mr B eight weeks to agree a repayment strategy with the Council for any outstanding amount. If Mr B and the Council are unable to agree a repayment strategy in that time, the Council should follow its Corporate Debt Policy.
    • review its Corporate Debt policy to include a definition of ‘vulnerable’ and ‘vulnerability’ and for decisions about this to be documented at the time they are made.

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Final decision

  1. I have found fault by the Council. I have now completed my investigation.

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Investigator's decision on behalf of the Ombudsman

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