Summary: Ms Y complains the Council failed to clearly explain how her Council Tax bill was calculated and did not offer her an affordable special payment arrangement for Council Tax arrears. She complains about the Council’s consideration of her vulnerability when writing to her about a possible Magistrates Summons. She says this has caused her distress. The Ombudsman does not find fault in the action and decisions taken by the Council.

The complaint

1. The complainant, who I shall refer to here as Ms Y, complains the Council:
1. failed to provide a clear explanation of how her Council Tax bill was calculated between the period of 2019 to 2020;
2. failed to offer a repayment plan for 2019/20 and 2020/21 Council Tax arrears that was affordable;
3. failed to consider if she was vulnerable when communicating with her about a possible Magistrates Court summons;
4. incorrectly assessed her Council Tax liability when her eligibility for Working Tax Credits ended between December 2019 and January 2020;
5. spoke to her in an abusive and unhelpful way when discussing her account; and,
6. failed to only send bills by email as requested by Ms Y.
2. Ms Y says this has caused her distress and upset. She says she has struggled to keep track of the council tax she is due to pay because of the numerous changes made over recent months.

Back to top

What I have investigated

3. I have investigated parts a to c, and e to f of Ms Y’s complaint. The last section of this decision statement explains my reasons for not investigating part d of Ms Y’s complaint about her Council Tax assessment.

Back to top

The Ombudsman’s role and powers

4. We investigate complaints of injustice caused by ‘maladministration’ and ‘service failure’. I have used the word ‘fault’ to refer to these. We cannot question whether a council’s decision is right or wrong simply because the complainant disagrees with it. We must consider whether there was fault in the way the decision was reached. (Local Government Act 1974, section 34(3), as amended)
5. The Local Government Act 1974 sets out our powers but also imposes restrictions on what we can investigate.
6. 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)
7. The Valuation Tribunal deals with appeals against decisions on council tax liability and council tax support or reduction.
8. 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)

Back to top

How I considered this complaint

9. I considered the information provided by Ms Y and the Council.
10. Ms Y and the Council had an opportunity to comment on my draft decision. I considered all comments before I reached a final decision.

Back to top

What I found

Council tax billing and recovery: legal and administrative information

11. The Local Government Finance Act 1992 gives local authorities the power to levy and collect a dwelling tax. This is known as council tax. The main legislation concerned with the collection and recovery of council tax is the Council Tax (Administration and Enforcement) Regulations 1992 (as amended) (the Regulations).
12. The tax is payable by monthly instalments, traditionally ten from April to January. Councils have discretion to decide when the instalments will be payable, but there can only be one instalment for one taxpayer in any one month. The decision on dates is made before the start of the tax year and cannot be changed during the year. By agreement a council and a taxpayer may make a special payment arrangement outside the normal instalment scheme.
13. Before a council can pursue someone for council tax it must send a demand. If a taxpayer misses a payment, a council must issue at least one reminder notice before issuing a summons for a liability order in the magistrates’ court. They can then seek to recover payment of the sum in the liability order by various means.
14. A liability order gives a council legal powers to take enforcement action to collect the money owed. The council can add the costs of obtaining the order to the person’s debt.
15. If someone does not pay the council tax, and the costs, the council can ask bailiffs (also referred to as enforcement agents) to collect the debt. Bailiffs charge fees which also must be paid.
16. There is no definition of ‘vulnerable’ in the law or government guidance. The law and guidance do not say debts may not be recovered from vulnerable debtors, but that such cases once identified should be handled with care.

Council tax exemptions, discounts and reduction

17. A council has discretion to apply reductions and exemptions for Council Tax. A council will detail what reductions and exemptions it applies. Councils are under a duty to “take reasonable steps to ascertain” whether any discounts or exemptions should apply to taxpayers. (The Regulations, Regulation 14)
18. The Council’s Local Council Tax Reduction Scheme (2020/21) details how its scheme will work for both pension credit age and working age applicants (the Working Age Scheme). Ms Y falls within the definition of a working age applicant.
19. The Council’s Working Age Scheme is a means test. This means the Council will consider the applicant’s income and decide the level of Local Council Tax Reduction the applicant is eligible for. The Council’s Scheme states the maximum Local Council Tax Reduction someone will receive when they are of working age and receiving Universal Credit is 80%.
20. The Council’s Scheme outlines that any changes to a person’s Universal Credit may impact their entitlement to council tax support under the Working Age Scheme. If a person’s earned income outside of their Universal Credit entitlement increases, this could reduce a person’s council tax support. Where Local Council Tax Reduction is reduced to nil entitlement, the claim ends.

Service of documents

21. The Regulations (Regulation 17(4)) refer to the date of issue of documents as the date it was left with the person (if delivered by hand) or posted. Councils may refer to the date of issue as the date that appears on the document, and usually on the council’s computer system. But this may not be the date the document was actually posted. The importance of this is that the time limits for recovery start from the date of issue, not the date a person receives the document.
22. For a document to be effective it must be served on a person. Summonses are served under Regulation 35(2). All other documents are served under the Local Government Act 1972 (section 233). Both say the document may be served on a person by delivering it to them (in person), leaving it at their proper address or sending it by post to their proper address. Proper address is taken to be the last known address. There is no need to use registered or recorded post.

What happened

23. In October 2020, Ms Y complained to the Council. She said the Council had:
1. failed to provide a clear explanation of how her Council Tax bill had been calculated between the period of 2019 to 2020;
2. failed to offer a repayment plan for Council Tax arrears that was affordable. She said she had been trying to repay her 2019/20 Council Tax bill, but a change in financial circumstances due to COVID-19 meant the current repayment plan was no longer affordable;
3. failed to properly consider if she was vulnerable when communicating with her about a possible Magistrates Court summons;
4. incorrectly assessed her Council Tax liability when her eligibility for Working Tax Credits ended between December 2019 and January 2020; and,
5. failed to only send bills by email as requested by Ms Y. She said her post often arrives open or goes missing. She also said she has struggled to keep track of the numerous changes made to her Council Tax over the last few months.
24. The Council replied to Ms Y’s complaint two weeks later. It did not uphold Ms Y’s complaint.
25. Ms Y asked for the Council to consider her complaint under the final stage of its complaints process.
26. In November, the Council sent Ms Y its final complaint response. It said Ms Y had asked for her complaint to be escalated on the grounds that “the points of concern … raised have not been properly addressed”. The Council said its original complaints response provided a sufficiently detailed response to each of the issues that Ms Y had raised.
27. In February 2021, Ms Y complained to the Ombudsman.

Analysis – was there fault by the Council causing injustice?

The Council’s explanation of Ms Y’s Council Tax bill

28. In its stage one complaint response, the Council said it had sent Ms Y notification letters, which explained the amount of Council Tax she needed to pay between 2019 and 2020.
29. I have reviewed the bills and notifications sent to Ms Y between December 2019 and December 2020. These show the following:

• in December 2019, the Council contacted Ms Y to confirm whether she was still in receipt of statutory sick pay (SSP). Case notes provided by the Council show that Ms Y was due to send in copies of her payslips in December 2019, but she was unable to email them. The Council asked her to hand them in in person so they could be considered quickly. Ms Y did so at the start of January 2020.
• Later in January 2020, the Council sent Ms Y a notification letter. It explained the level of council tax support she would get each week under its Local Council Tax Reduction Scheme had increased because her Working Tax Credits had ended.
• In February, the Council increased the level of council tax support Ms Y would get each week as her award of Universal Credit had changed.
• In March, the Council increased the level of council tax support given each week as Ms Y’s award of Universal Credit had slightly decreased.
• In April, the Council decreased the level of Ms Y’s Local Council Tax Reduction because of changes to her Universal Credit following an increase in household earnings.
• In May, the Council explained Ms Y would no longer receive Local Council Tax Reduction. Ms Y was no longer in receipt of Universal Credit. Due to the amount of income from earnings she received, her income was now above the eligible amount to receive this reduction.
• In July, the Council restarted Ms Y’s council tax support for the maximum eligible amount as Ms Y was receiving Universal Credit again.
• In August, the Council reduced Ms Y’s reduction when her earnings increased.
• In September, the Council slightly increased Ms Y’s reduction when her total weekly income slightly decreased.
• In December, the Council decided to slightly reduce Ms Y’s reduction because of the level of household earnings she was receiving.
• A few weeks later, the Council sent Ms Y an updated notification increasing her reduction to the maximum amount as Ms Y was solely receiving Universal Credit and was not receiving any household earnings.
• Additionally, the Council sent Ms Y two special payment arrangement letters for arrears accrued during the 2019/20 and 2020/21 tax years. Both letters clearly set out the arrears to be paid for each tax year.

30. Ms Y’s council tax liability, after any awarded Local Council Tax Reduction, has changed regularly between 2019 and 2020. This was due to changes in Ms Y’s earnings and benefit entitlements. As a result, the Council has issued notification letters responding to each of these financial changes and detailing how this affected the level of council tax support awarded. The Council clearly explained in these letters whenever it decided to reduce or cease Ms Y’s council tax support due to her earned income.
31. In each notification letter, I find the Council has clearly explained: the level of Local Council Tax Reduction that Ms Y would receive and why any changes had been made; her Council Tax liability each week, including the amount due after any Local Council Tax Reduction; and provided details of how to appeal against its decision (first through a review by the Council then by appeal to the Valuation Tribunal Service). While I appreciate the frequency of notifications may have been confusing for Ms Y, it was not due to fault by the Council (part a of the complaint).

Ms Y’s repayment plan for Council Tax arrears

32. Ms Y complains the Council failed to offer a repayment plan for 2019/20 and 2020/21 Council Tax arrears that was affordable (part b of her complaint).
33. In October, the Council issued Ms Y a second reminder notice about Council Tax arrears for 2019/20 and a first reminder about 2020/21 arrears.
34. A few days later, Ms Y called the Council. The Council agreed to a special payment arrangement with Ms Y to clear the arrears covering both tax years. It wrote to her confirming the details. To clear the arrears, it said Ms Y should pay monthly instalments of £66.83 for October 2020 and then £66 thereafter for the next seven months.
35. Based on the case notes from the Council’s discussion with Ms Y and the letter following this from the Council, it is my understanding that a special payment arrangement was explored with Ms Y during the call. She told the Council she would not be able to complete repayments by the expected deadline of March 2021. The Council, therefore, decided this repayment arrangement was affordable if it extended the repayment period by two months (until May 2021). On balance, I find the Council has sufficiently reasoned how it made this decision. Without evidence of fault, I cannot question the content of the decision.
36. In response to our enquiries, the Council has offered to write off Ms Y’s debt of £10.99 for 2019/20 tax year and 50% of the 2020/21 debt (£168.15). In total, it has offered to write off £179.14 of Ms Y’s debt. The Council has, therefore, considered whether it could exercise discretion in Ms Y’s case (in line with offering discretionary relief under Regulation 13A). I would have no grounds to make such a recommendation, and so it is positive the Council is willing to do this after looking afresh at Ms Y’s complaint.

The Council’s consideration of Ms Y’s vulnerability

37. Ms Y complains the Council failed to properly consider if she was vulnerable when communicating with her about a possible Magistrates Court summon (part c of the complaint).
38. In April 2020, due to COVID-19, the Council decided to temporarily suspend recovery action on Council Tax arrears. It said this was because it understood its customers were likely experiencing financial difficulties due to COVID-19.
39. In July 2020, the Council wrote to Ms Y to explain it was restarting its recovery action on Council Tax arrears. It sent two separate letters covering arrears accrued during the 2019/20 and 2020/21 tax years. It told Ms Y:

• it could consider a longer-term special payment arrangement with Ms Y to clear any arrears together with paying any ongoing council tax that is due. It provided Ms Y with the relevant contact details to discuss this with the Council; and
• provided details of Ms Y’s local Citizens Advice Bureau.

40. As explained above, in October, the Council issued Ms Y a second reminder notice for 2019/20 arrears. It said Ms Y should pay the overdue amount in the next seven days or “recovery proceedings will be commenced in the Magistrates Court and costs of £82.50 will be due and payable upon the issue of a Summons.”
41. A few days later, Ms Y called the Council. As explained above, the Council agreed to an instalment plan with Ms Y and wrote to her confirming the details. It explained failure to make the repayments would result in the arrangement being cancelled; no reminder would be sent and recovery action would start.
42. Local authorities should consider carefully a person’s vulnerability during the debt enforcement process. There are additional safeguards the Council should adhere to, when pursuing a debt against someone who may be vulnerable, or where they may be a vulnerable person in the household.
43. However, simply having a vulnerability does not mean a person cannot be subject to debt enforcement.
44. Ms Y has mental health issues and struggles with financial matters. The Council told us that it is aware of this and there is a note on her file. But, I find the Council is still entitled to contact Ms Y in the way it has. It set out clearly the action it may take if the agreed special payment arrangement is not met. The Council has also clearly explained to Ms Y the circumstances in which recovery action would restart.
45. When Ms Y contacted the Council in October, it decided not to pursue recovery proceedings and agreed to a special payment arrangement with her. It is my understanding, the Council has not pursued any recovery action since, despite the fact some arrears have been outstanding for two years. I find the Council acted in a way that was in line with the law and what was expected of it. I do not find it at fault here (part c of the complaint). I am satisfied the Council has taken suitable account of Ms Y’s vulnerability, including by offering to write off some of Ms Y debts after considering her complaint afresh (see paragraph 36 above).

Ms Y’s complaint about a Council officer

46. In its complaint response from October 2020, the Council explained its calls are not recorded. It reassured Ms Y its staff seek to help residents in a professional and empathetic manner, including when they may not be able to provide the caller with the desired answer.
47. I have considered the Council’s record of the call. This shows the connection was poor and the call dropped at one point. The Council Officer called Ms Y back, but, again, the connection was poor. The call record shows the Officer attempted to explain the monthly repayment of £66.83 per month to Ms Y. On balance, it is likely the poor connection affected the call. The Officer, nevertheless, made efforts to communicate clearly around this and said they would follow up with a letter. I have seen evidence the Officer sent Ms Y this letter. I do not find the Council at fault here (part e of the complaint).

Ms Y’s request for bills to be sent by email

48. In its complaint response from October 2020, the Council explained to Ms Y that certain legislation requires some Council Tax documents to be issued by post and the Council, along with every council, must comply with the regulations. This is in line with paragraphs 21 and 22 above. I, therefore, do not find the Council at fault here (part f of the complaint).
49. The Council told us Ms Y may receive electronic versions of her bills through signing up to its online portal, MyDistrict. Although it would have been helpful if the Council had highlighted this to Ms Y sooner, I do not find this amounts to fault.

Back to top

Final decision

50. I have completed my investigation. I have not upheld parts a to c, e and f of Ms Y’s complaint because I have not found the Council at fault.

Back to top

Parts of the complaint that I did not investigate

51. Ms Y complains the Council incorrectly assessed her Council Tax liability when her eligibility for Working Tax Credits ended between December 2019 and January 2020 (part d of her complaint).
52. The law says we cannot normally investigate a complaint when someone can appeal to a tribunal (Local Government Act 1974, section 26(6)(a), as amended).
53. I have reviewed relevant Notification of Local Council Tax Reduction Scheme letters the Council sent Ms Y. In each letter, the Council explained the process for requesting reviews of its decision and the right to appeal this decision to the Valuation Tribunal. In Ms Y’s case, I, therefore, find she could have reasonably been expected to appeal these decisions to the Valuation Tribunal (see paragraphs five to seven above). This means I have decided I will not investigate part d of her complaint.

Back to top

Investigator's decision on behalf of the Ombudsman