Summary: Miss X complains the Council has not refunded all the Council Tax she overpaid when she was a student and therefore exempt. I have completed my investigation. There is fault by the Council. It should apologise, issue a refund, and pay Miss X £150.

The complaint

1. Miss X complains the Council has not refunded all the Council Tax she and her brother over-paid when she was a student and therefore exempt.
2. As a result, Miss X says the Council owes her and her brother money and she has experienced avoidable frustration pursuing the matter.

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The Ombudsman’s role and powers

3. 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)
4. 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)

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How I considered this complaint

5. I spoke to Miss X about the complaint.
6. I made written enquiries of the Council and considered its response.
7. I referred to the Ombudsman’s guidance on remedies, a copy of which can be found on our website.
8. Miss X and the Council had an opportunity to comment on my draft decision. I considered any comments received before making a final decision.

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What I found

Background

9. From August 2017 until June 2019, Miss X and her brother, whom I shall call Mr Y, lived together in a flat.
10. Miss X was a student and therefore exempt from Council Tax. Her brother was entitled to the Single Person Discount as a result.
11. Miss X says she and her brother did not initially realise she was exempt and so paid full Council Tax on the property.
12. In June 2019, Mr Y moved out and Miss X became the sole resident of the property. Miss X was a full-time student until June 2020.

Mr Y’s Council Tax account

13. Mr Y was liable for Council Tax at the property from August 2017 to June 2019.
14. In June 2019, Mr Y told the Council he was moving out. He told the Council Miss X was staying in the property and that she was a student.
15. Miss X provided proof of her student status in November 2019. In December 2019, Mr Y contacted the Council to ask about a refund. The Council advised him to provide proof of Miss X’s student status.
16. In March 2020, Miss X emailed the Council about Mr Y’s refund. At this point, the Council applied the Single Person Discount, creating an overpayment.
17. The Council paid Mr Y a refund in May 2020.

Miss X’s Council Tax account

18. The Council created a new Council Tax account in Miss X’s name in June 2019.
19. In August 2019, the Council issued a summons for non-payment of Council Tax.
20. Miss X emailed the Council informing of her student status. Later that month, Miss X’s father paid the outstanding balance on the account, £1774.37
21. In September 2019, the Council wrote to Miss X advising that once she provided proof of her student status, the Council would refund any overpayment.
22. In November 2019, Miss X emailed the Council. She attached three Student Status letters, covering the period September 2017 to June 2020.
23. In January 2020, the Council refunded one week of Council Tax, being June 7-14 2019. This is the week between Miss X becoming liable for the Council Tax when Mr Y moved out and the second student exemption period ending

Was there fault?

Mr Y

24. The Council accepts that when Miss X provided the evidence of student status in November 2019, it should have applied the exemption to Mr Y’s account. Instead this did not happen until March 2020. This is a delay of 4 months.
25. Nonetheless, the Council repaid the overpayment in full. Therefore, the injustice to Mr Y is limited to the time and trouble of following up his initial query in December 2019. To remedy this injustice, the Council should apologise to Mr Y.

Miss X

26. Miss X’s correspondence with the Council was protracted and at times confusing. At one point, the Council requested a copy of a tenancy agreement for the property. This is despite the fact that Mr Y owns the property.
27. There was also delay by Miss X in providing the requested proofs.
28. Miss X provided proof of her student status in November 2019. The Council says this covered the period September 2017 to June 2019. Miss X says this covered the period September 2017 to June 2020.
29. In response to my enquiries, the Council provided a copy of Miss X’s email. There are two student status letters attached. These cover the period up to June 2019.
30. Miss X also sent me a copy of this email. It has three student status letters attached and covers the period up to June 2020.
31. On balance, I think it likely Miss X provided all three letters to the Council. The third letter is in a different document format, which may explain why the Council did not process it.
32. This third letter confirms Miss X’s student status from September 2019 to June 2020.
33. Miss X was therefore exempt from Council Tax in the 2019/2020 tax year from September 2019 to March 2020. From June 2019, when one course ended, to September 2019, when her next course started, Miss X was liable for Council Tax.
34. The Council has not refunded Miss X’s father for the Council Tax he overpaid on her behalf before her student status was confirmed. This is fault. The Council should now adjust the account to reflect the student status and repay any overpayment.
35. Miss X has had to go to significant time and trouble pursuing this matter with the Council. Miss X says the Council would repeat the same advice or ask the same questions when she called for updates. The Council also at times gave conflicting or irrelevant information, such as asking for a tenancy agreement when Mr Y had already provided proof he owned the property.
36. The Council did not initially realise Miss X was claiming exemption for the 2019/2020 tax year. However, this should have become clear when she continued to seek a refund after the Council refunded the one week in June.
37. The Council should apologise to Miss X and pay her £150 in recognition of the unnecessary confusion and time and trouble caused.

Agreed action

38. To remedy the injustice caused by the fault I have identified, the Council should:
• Apologise to Mr Y;
• Apologise to Miss X and pay her £150; and
• Apply Miss X’s student exemption to the 2019/2020 bill and repay any overpayment.
39. The Council should take this action within four weeks of my final decision.
40. The Council should also take the following action to improve its service:
• Remind relevant staff that notes and records should contain enough information to enable other officers to give accurate and relevant information and advice.
41. The Council should provide evidence to the Ombudsman it has completed this action within eight weeks of my final decision.

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Final decision

42. I have completed my investigation. There is fault by the Council. The action I have recommended is a suitable remedy for the injustice caused.

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Investigator's decision on behalf of the Ombudsman