Summary: We will not investigate this complaint about council tax arrears because there is insufficient evidence of fault by the Council and because there are appeal rights the complainant could use.

The complaint

1. The complainant, whom I refer to as Mr X, does not accept he has council tax arrears because the Council told him he did not need to report changes in his income. Mr X is also unhappy that the Council used a council tax credit to reduce the arrears.

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The Ombudsman’s role and powers

2. 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’. We provide a free service, but must use public money carefully. We may decide not to start an investigation if we believe it is unlikely we would find fault. (Local Government Act 1974, section 24A(6), as amended)
3. The law says we cannot normally investigate a complaint when someone can appeal to a tribunal. 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)
4. 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

5. I read the complaint and the Council’s responses. I read the back of a council tax bill which says people must report changes in their income. I invited Mr X to comment on a draft of this decision.

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What I found

Council tax discount

6. People who live alone are entitled to a 25% single person council tax discount. Entitlement is solely based on whether the person is the only adult in the home.

Council tax support

7. Council tax support (CTS) is a means-tested benefit to help people on a low income pay their council tax. People who get CTS have a duty to report changes in their income.

What happened

8. In 2016 Mr X reported that he was living alone. The Council awarded the single person discount. Mr X says the officer told him the only change he would need to report was if he stopped living alone.
9. Mr X claimed CTS in June 2017. The Council says the CTS claim form includes a declaration that the person will report all changes in their income. There is a statement on the back of every council tax bill which states the person must report changes in their income.
10. Mr X started work in March 2018. He did not tell the Council because he had been told in 2016 that he only needed to report if he stopped living alone.
11. Mr X got married in early 2020 and informed the Council. Part of the information he provided stated he had started work in March 2018.
12. The Council decided Mr X’s income was too high to receive CTS after he started work in March 2018. The Council removed the CTS and added the amount to the council tax. The Council also did some adjustments to the previous account which generated a credit. The Council used the credit to offset the arrears. The Council invited Mr X to appeal to the Valuation Tribunal if he disagreed.
13. Mr X does not accept he has arrears. This is because he was told he only needed to report that he no longer lived alone and he did that when he got married. He also says the Council should not have used the credit to reduce the arrears because the arrears are wrong.

Assessment

14. I will not start an investigation for the following reasons.
15. There is insufficient evidence of fault by the Council. The Council told Mr X that he only needed to report another adult moving in; this advice was within the context of claiming the single person discount. And, within that context, the advice was correct. But, the advice did not relate to all other council areas. Mr X claimed CTS which is a means-tested benefit and one which included information about reporting income changes as part of the application process. In addition, every council tax bill says people must report changes in their income. The Council provided Mr X with enough information for him to be aware that he needed to tell the Council when he started work. In addition, it is reasonable to expect Mr X to have been aware that CTS was to support him during his period of unemployment.
16. Mr X complains the Council used a credit to reduce the arrears. It is not wrong for a council to use a credit to reduce arrears. If the Council paid the credit to Mr X he would then have to pay all the arrears. Alternatively, if the arrears were subsequently found to be wrong, the Council would refund the money to Mr X.
17. I also will not start an investigation because Mr X could appeal to the Valuation Tribunal if he does not think the Council has properly assessed his council tax or arrears. It is reasonable to expect him to appeal because the tribunal is the appropriate body to consider council tax disputes. And, the Council notified Mr X of his appeal rights.

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Final decision

18. I will not start an investigation because there is insufficient evidence of fault by the Council and because Mr X could appeal to the Valuation Tribunal.

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Investigator's decision on behalf of the Ombudsman