Summary: Miss X complained the Council decided to recover Council tax debt without taking account of Mr X’s disability, causing significant distress. We found the Council did not have due regard to its duties under the Equality Act 2010. We recommended it pays Miss X £200 for distress, pays Mr X £500 for distress and, evidences the actions taken to prevent recurrence.

The complaint

1. Miss X complains on behalf of her partner Mr X, that the Council took action to recover a Council tax debt without taking account of their circumstances and the impact on Mr X’s mental health. She says it failed to make reasonable adjustments and breached the Equality Act 2010.
2. Miss X explains Mr X suffered a psychotic break as a result and this has prolonged his time off work. Her anxiety is also worse.

Back to top

The Ombudsman’s role and powers

3. We may investigate complaints made on behalf of someone else if they have given their consent. (Local Government Act 1974, section 26A(1), as amended)
4. 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)
5. We consider whether there was fault in the way an organisation made its decision. If there was no fault in the decision making, we cannot question the outcome. (Local Government Act 1974, section 34(3), as amended)
6. If we are satisfied with an organisation’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

7. I spoke to Miss X and I reviewed documents provided by Miss X and the Council.
8. I gave Miss X and the Council an opportunity to comment on my draft decision. I considered their comments before making a final decision.

Back to top

What I found

Equality Act 2010

9. The Equality Act 2010 provides a legal framework to protect the rights of individuals and advance equality of opportunity for all. It offers protection, in employment, education, the provision of goods and services, housing, transport and the carrying out of public functions.
10. The Equality Act makes it unlawful for organisations carrying out public functions to discriminate on any of the nine protected characteristics listed in the Equality Act 2010. This list includes disability.
11. The Ombudsman cannot find that a body in jurisdiction has breached the Equality Act. However, we can find a body at fault for failing to take account of their duties under the Equality Act.

Direct discrimination

12. Direct discrimination occurs when a person treats another less favourably than they treat or would treat others because of a protected characteristic. Direct discrimination is generally unlawful.

Indirect discrimination

13. Indirect discrimination may occur when a service provider applies an apparently neutral provision, criterion or practice which puts persons sharing a protected characteristic at a particular disadvantage.

Reasonable adjustments for people with disabilities

14. The reasonable adjustment duty is set out in the Equality Act 2010 and applies to any body which carries out a public function. It aims to make sure that a disabled person can use a service as close as it is reasonably possible to get to the standard usually offered to non-disabled people.
15. Service providers are under a positive and proactive duty to take steps to remove or prevent obstacles to accessing their service. If the adjustments are reasonable, they must make them.
16. The duty is ‘anticipatory’. This means service providers cannot wait until a disabled person wants to use their services, but must think in advance about what disabled people with a range of impairments might reasonably need.

Council Tax Reduction

17. Council tax reduction (previously called Council Tax Support) is available for those on low income or certain benefits.

Council Tax discretionary relief

18. Councils have discretion to reduce a person’s council tax bill to nil under Section 13A(1)(c) of the Local Government Finance Act 1992 (as amended by The Local Government Finance Act 2012).
19. The Council ran a hardship scheme which reduced the Council tax payable for those eligible.

What happened

20. Miss X says Mr X and herself were unable to work due to poor health and were struggling to pay their bills. Miss X explains Mr X is Bi Polar and has ADHD, PTSD, Dissociative Identity Disorder and severe mental impairment. She says this is made worse by stress. They benefitted from Council Tax Support.
21. Miss X says in January 2022 Mr X agreed a payment plan with the Council to pay off the Council tax owed for 2021/22. But as he did not return to work as expected he struggled to maintain this.
22. As of 1 April 2022 Mr X owed £237.82 in Council tax from the previous year.
23. Miss X says she called the Council on 23 June to explain their difficulties. Namely that Mr X was in poor mental health and unable to pay bills while off work and; that he needed time to recover without being chased for bills so he could return to work. Miss X says she agreed with the Council for Mr X to pay £28 in August and then £19 per month for the following 11 months. Miss X says even this was a stretch but the Council said this was the lowest payment plan it could agree.
24. The Council has provided a screenshot from its system showing the payment arrangement referred above and that it had flagged Mr X as vulnerable.
25. On 27 June the Council sent a letter to Mr X rejecting the payment plan offered by Miss X because it would not clear the balance by the end of the financial year. It explained as no payment arrangement had been made the full balance remained due and payable. Mr X could contact the Council to suggest an alternative payment plan. However, it would continue recovery action to recover the full balance unless or until they agreed a plan.
26. Miss X says she contacted Citizens Advice and thought they would resolve this, so she did not contact the Council.
27. Miss X says on 27 July she received a letter from the Council dated 21 July seeking payment of the full sum owed within 7 days.
28. Miss X says she called the Council and asked it to place recovery action on hold while it considered her requested hardship payment. She says the Council said it would consider this request.
29. On 1 August Miss X paid the outstanding sum.
30. On 2 August Miss X wrote to the Council to complain about its actions, as outlined above. She said Mr X was now in extremely poor mental health due to stress and the threat of legal action. They had sold a sofa to pay the bill on 1 August. She considered the Council had breached the Equality Act 2010 by not taking account of Mr X’s disability in deciding to pursue the debt. She felt it would not have come to this had the Council made reasonable adjustments and accepted the payment plan offered.
31. In response the Council explained it recorded very brief details of Mr X’s mental health issues but no details as to how this impacted him. It apologised for this and confirmed it would have acted differently if known. It had now updated his account with further information. It usually tried to get arrears paid within the same financial year but in this case it would have been preferable to have accepted the payment plan she offered. It apologised that this did not happen. It could see Mr X had now made payment and was sorry she had to sell furniture to do so.
32. Miss X replied to say the apology was insufficient remedy.
33. The Council provided a final response. It repeated previous information but added it would send a reminder to the Council tax team advising them to consider all circumstances before rejecting payment arrangements, and to seek advice from a more senior member of staff if they are unsure. It also offered £75.00 for distress.
34. Miss X responded further to say the remedy offered was inadequate. Mr X was pushed to a psychotic break due to the stress the Council imposed on him and she was unsure he would ever be able to return to work. She said the Council had broken the law by breaching the Equality Act 2010. Further, the Council should have already held notes on Mr X’s account following previous discussions and a complaint in 2021.

Findings

35. The Council accepts it did not properly record or take account of Mr X’s disability when deciding whether to accept the payment plan offered in June 2022. I consider this evidence the Council did not have due regard to its duties under the Equality Act 2010 to make reasonable adjustments and to ensure it did not indirectly or directly discriminate against Mr X. This is fault.
36. I am satisfied on balance the Council would have accepted the payment plan offered but for its fault. Therefore, Miss X and Mr X were put to avoidable distress due to the refusal of the plan and the demands for payment. The impact to Mr X was especially significant given his existing poor mental health. And both would have suffered distress due to having to sell furniture to pay the debt. This is injustice.
37. I recognise Mr X suffered a setback in his mental health and may take longer to return to work. However, as other factors will impact his return to work I cannot say the Council is directly responsible for any delay in his return or loss of earnings.
38. The Council has already apologised and says it has taken action to prevent recurrence. I am satisfied with this however I will ask that it provide evidence in support. The Council also offered £75.00 for distress however I consider this inadequate to recognise the impact to Miss X and Mr X.
39. The Ombudsman cannot award compensation for personal injury or distress but we can consider a payment in recognition of distress suffered. I will recommend a payment in line with our guidance.

Back to top

Agreed action

40. To remedy the injustice set out above I recommend the Council carry out the following actions within one month:
• Pay Miss X £200 for distress;
• Pay Mr X £500 for distress;
• Provide the Ombudsman with evidence it has reminded staff in its Council tax team to take account of all circumstances, including any disability, when deciding on payment plans to clear Council tax debt.
41. The Council should provide us with evidence it has complied with the above actions.
42. The Council has accepted my recommendations.

Back to top

Final decision

43. I find the Council did not have due regard to its duties under the Equality Act 2010 causing injustice. The Council has accepted my recommendations and I have completed my investigation.

Back to top

Investigator's decision on behalf of the Ombudsman