Summary: Ms X complained the Council pursued historic council tax debts without providing a clear explanation or following correct procedures. She said the Council seeking to recover a debt after a long period affected her wellbeing and financial circumstances. We have found the Council at fault for administrative errors which contributed to the delay and led to the avoidable involvement of enforcement agents. This caused Ms X avoidable uncertainty and distress. We have made recommendations for the Council to remedy Ms X’s unaddressed injustice.

The complaint

1. Ms X complained the Council pursued historic council tax debts without providing a clear explanation and without following the correct procedures. Ms X said the Council took around seven years to claim the debts, which Ms X disputes are valid. She said the delay has impacted her financial circumstances.
2. Ms X said her health issues make dealing with a historic matter complicated and upsetting. She also said her financial circumstances make resolving the matter more difficult than it would have been, if the Council had sought to recover the debt sooner. She said the Council’s actions have caused avoidable frustration and distress.

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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 significant injustice, or that could cause injustice to others in the future we may suggest a remedy. (Local Government Act 1974, sections 26(1) and 26A(1), as amended)
4. The law says we cannot normally investigate a complaint when someone has a right of appeal, reference or review to a tribunal about the same matter. However, we may decide to investigate if we consider it would be unreasonable to expect the person to use this right. (Local Government Act 1974, section 26(6)(a), as amended)
5. When considering complaints we make findings based on the balance of probabilities. This means that we look at the available relevant evidence and decide what was more likely to have happened.
6. We cannot investigate late complaints unless we decide there are good reasons. Late complaints are when someone takes more than 12 months to complain to us about something a council has done. (Local Government Act 1974, sections 26B and 34D, as amended)
7. We cannot investigate complaints about the provision or management of social housing by a council acting as a registered social housing provider. (Local Government Act 1974, paragraph 5A schedule 5, as amended)
8. 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)

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What I have and have not investigated

9. Part of Ms X’s complaint concerns the Council’s actions as a social landlord and how it managed her tenancy. The law says we cannot consider these matters. The restriction set out in paragraph 7 applies. Housing management matters would be within the jurisdiction of the Housing Ombudsman Service to consider.
10. Paragraph 6 sets out the Ombudsman’s jurisdiction to consider matters that happened over 12 months ago. Ms X’s complaint concerns actions the Council took many years ago. However, Ms X only became aware of these actions within the last 12 months. I have therefore exercised discretion to consider relevant historic matters.
11. The Ombudsman cannot decide whether Ms X is liable for the council tax debt. The Valuation Tribunal considers council tax liability. Ms X’s right to appeal to the Tribunal is addressed in this statement.

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How I considered this complaint

12. I discussed the complaint with Ms X and considered information she provided.
13. I considered information the Council provided about the complaint.
14. Both Ms X and the Council were able to comment on a draft version of this decision. I considered any comments received before making a final decision.

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Relevant legislation, guidance and policy

Council tax recovery

15. The Council Tax (Administration and Enforcement) Regulations 1992 cover both the way councils collect payments of council tax and the way councils can recover council tax debt. The Tribunals, Courts and Enforcement Act 2007 and associated regulations cover the way enforcement agents may recover debts.
16. The council tax bill for the year is due on 1 April. A council will usually collect payment through monthly instalments. If the liable person misses any instalment, the council will send them a reminder. If a payment is still not made or a further payment missed, then the entire outstanding balance will be due (that is the full amount for the rest of the year).
17. To use the various powers available to it to recover unpaid council tax, a council must apply to a magistrate’s court for a liability order against those it believes are liable. Once a council has a liability order it can take recovery action.
18. A liability order gives a council the legal power to take enforcement action to collect the council tax and court costs owed. The most commonly used powers are asking for deductions from benefits, getting an attachment of earnings (this means deductions are taken directly from earnings by an employer and passed to the council) or using enforcement agents. The council can decide which recovery method to use but it can only use one method for one liability order at one time.
19. Government guidance ‘Guidance to local councils on good practice in the collection of council tax arrears’ says councils should remain prepared to deal directly with individuals at any point. It says councils can ‘call action back from the enforcement agents at any time and where there is a case to do so they should consider such action’.
20. The Council’s “Council tax and business rates recovery policy” states:

“Where a taxpayer or ratepayer leaves a property without notifying the Council of their forwarding address the Council will make every effort to trace their current whereabouts and to collect the amount outstanding.”

21. In exceptional circumstances, councils can effectively write off some or all of a council tax debt by using their discretionary powers under S13A(1)(c) of the Local Government Finance Act 1992 (as amended).
22. The Valuation Tribunal deals with appeals against decisions on council tax liability and council tax support or reduction.

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What I found

Key events

23. Below is a summary of the key events leading to this investigation. It is not an exhaustive chronology of every exchange between parties. Where necessary, I have expanded on some of these events in the “analysis” section of this decision statement.
24. Ms X lived at Property B, a Council-managed property, until June 2016. Ms X said she had to move out of Property B because the Council failed to undertake necessary repairs. The Council said Ms X left Property B without telling the Council and did not provide a forwarding address.
25. The Council said the Department for Work and Pensions (DWP) told the Council in June 2016 that Ms X had changed address. The DWP provided a new address at Property C. The Council said it wrote to Ms X at Property C, asking her to confirm when she left Property B. The Council said Ms X did not respond to this letter. Because Ms X did not respond, the Council said it did not know if the address at Property C was correct. As a result, the Council did not update its records to change Ms X’s address. It continued to send council tax correspondence to Property B, the last confirmed address it had.
26. The Council said it sent a reminder, a summons and a liability order for outstanding council tax for the 2016/17 financial year to Property B. It said it sent these in August and September 2016. In March 2017, it sent a council tax bill for the 2017/18 year to Property B. Between April and May 2017, the Council sent a reminder, a final notice and a summons to Property B for the council tax owed in the 2017/18 financial year.
27. In June 2017, the Council said the Post Office returned the letters it sent to Property B as undelivered. The Council’s housing services confirmed Ms X’s tenancy had come to an end, so the Council closed the council tax account for Property B as of 22 May 2017. It confirmed with its housing services that Property C was the correct forwarding address. However, the Council then incorrectly recorded Property C’s address on its council tax system.
28. The Council sent an adjustment notice for the 2017/18 year to the incorrect address it recorded for Property C. The Council then obtained and sent a liability order for unpaid council tax at Property B. The Council again sent this to the incorrect address it held for Property C. The Council then took no further action until 2021.
29. In August 2021, the Council sent a notice confirming it had instructed enforcement agents to the incorrect address it held for Property C. The Council said it referred Ms X’s debt to Enforcement Agent L. Enforcement Agent L could not contact Ms X and eventually referred the debt back to the Council.
30. The Council then referred Ms X’s debt to a different enforcement agent, Enforcement Agent P. In July 2023, it sent a new notice of bailiff instruction, again to the incorrect address it held for Property C.
31. Enforcement Agent P was able to contact Ms X. Following this, Ms X contacted the Council in October 2023. Ms X said the officer she spoke with volunteered to put the recovery action on hold while the Council investigated the matter.
32. In November 2023, Enforcement Agent P delivered a notice to Ms X overnight. Ms X complained to the Council. She said the Council had acted improperly, by failing to put the recovery action on hold as suggested. Ms X asked the Council to do so.
33. The Council responded to Ms X’s complaint at stage one of its complaints procedure:
1. The Council apologised it had incorrectly told Ms X it would pause recovery action. The Council said the officer Ms X spoke to could not take this decision. The Council said it had identified training needs as a result.
2. The Council said the debt was accurate. The Council had returned the debt from Enforcement Agent P, so Ms X would deal directly with the Council from that point. The Council said it would apply to the DWP to have deductions made from Ms X’s pension credit instead.
3. The Council said it had sent Ms X an application for discretionary council tax relief.
4. The Council explained why it did not update its records in 2016, after contact from the DWP. It said it wrote to Ms X to confirm her new address, but it had not received a reply, so it did not update its records.
5. The Council said its housing records showed Ms X had abandoned her tenancy without giving notice. It said the tenancy did not end on the date Ms X left. The Council had to follow legal procedures to end the tenancy, which accounted for the difference in dates. The Council said it was open to Ms X to challenge the tenancy end date with its housing services. It said if the tenancy end date was changed, it could adjust the council tax bill accordingly.
6. The Council explained the length of time taken to contact Ms X was due to COVID-19 and then unsuccessful efforts by enforcement agents. The Council recognised Ms X would be unhappy with the Council claiming the debt after this length of time, but said it hoped she understood the Council had duly attempted to recover the debt.
34. In December 2023, Ms X wrote to the Council seeking a review of her complaint.
35. In January 2024, the Council responded to Ms X at the review stage of its complaints procedure:
1. The Council reiterated its apology for giving Ms X incorrect information about placing a hold on recovery action. It said while recovery action continued, no additional enforcement agent costs had accrued. It again confirmed it had recalled the debt from Enforcement Agent P, so Ms X could deal directly with the Council.
2. Ms X disputed her liability extended to May 2017. The Council said the fact of Ms X moving did not mean her tenancy ended. It said Ms X remained liable for council tax until the end of her tenancy at Property B, even if she was not living there. The Council provided the contact details for its housing services in case Ms X wished to follow this up.
3. The Council said it wrote to the address provided by the DWP at the time and provided a copy of the letter. The Council said Ms X did not respond, so her housing benefit and council tax support ended.
4. Ms X said she did not know she had council tax arrears until July 2023 and believed the Council had not followed proper procedure. The Council said Ms X did not tell the Council when she left Property B and did not provide a forwarding address, or respond to the letter it sent to Property C. It said it therefore continued to send recovery letters to the last confirmed address. The Council said it was satisfied it did what it could to make Ms X aware of the debt. It had referred the debt to enforcement agents because they had access to wider resources to help locate Ms X. The Council said locating individuals took time, which is why it had not taken recovery action sooner. It said it had also paused recovery action because of COVID-19.
5. The Council said it wrongly recorded Property C’s address in 2021 and 2023. The Council accepted Ms X would not have received the more recent letters it sent. The Council apologised for this error and for issuing letters to this address until recently. It said it had now corrected its records.
6. The Council said because Ms X did not know about the debt, due to it wrongly recording her new address, it would remove all enforcement agent recovery costs as gesture of goodwill. The Council confirmed it would recover the debt through an attachment to Ms X’s pension, which would commence shortly.
7. The Council noted Ms X had enquired about discretionary council tax relief. The Council said it sent the application form to Ms X in November 2023, but Ms X had not returned it. It said it would send another form to Ms X and asked that she return it as soon as possible.
36. In February 2024, Ms X told the Council she would refer her complaint to the Ombudsman. Ms X asked the Council to suspend recovery action while this happened. The Council replied and said it had asked the DWP to suspend recovery action for two months. It said it could not guarantee deductions would not be made from Ms X’s pension, before the DWP could action the suspension.
37. The Council sent a new notice of bailiff instruction to Property C in late February 2024. It later told Ms X this was a mistake, which occurred when the DWP told the Council it had cancelled the attachment to Ms X’s pension. The Council apologised for issuing this notice again.

Analysis

38. The Council said it calculated the council tax debt using the dates recorded for the end of Ms X’s tenancy. Tenancy management matters are outside of the Ombudsman’s jurisdiction to consider, in line with the restriction set out in paragraph 7. I cannot consider how the Council decided the end date of Ms X’s tenancy was correct. The Council said Ms X can challenge this with its housing service and, if the dates are changed, it will issue an amended council tax bill. I understand this course of action remains open to Ms X.
39. The Council received a forwarding address from the DWP, but was not certain it was correct. It sent a letter to Ms X to check, but did not receive a reply. It therefore did not update its council tax records and continued to send letters to the last confirmed address. It did so until the Post Office returned these letters as undelivered. I have not found the Council at fault for its actions up to this point.
40. The Council then confirmed the correct forwarding address at Property C for Ms X, which matched the address provided by the DWP. However, the Council then incorrectly recorded this address onto its records. Because of this error, Ms X did not receive any letters sent after this time. The Council accepts this.
41. I have found the Council at fault for incorrectly updating its records. This caused Ms X injustice. Because Ms X did not receive the Council’s letters, she lost the opportunity to engage with the situation earlier. This could have avoided the events that followed, including the involvement of enforcement agents. The distress and uncertainty this caused Ms X was avoidable.
42. The Council recognised it acted with fault by sending letters to the wrong address. It has taken some action to address this, by removing the added enforcement agent costs and recalling the debt from Enforcement Agent P, allowing Ms X to deal directly with the Council. I consider this partially addresses the avoidable injustice caused to Ms X. However, the Council has not addressed the uncertainty and distress Ms X experienced because of the avoidable involvement of enforcement agents. I have recommended the Council act to do so.
43. On the time taken for the Council to contact Ms X about the debt, the Council said the impact of COVID-19, and the time taken by different enforcement agents to contact Ms X, was the reason for delay. While I accept these were factors, this does not fully explain the lack of action for the entire period in question. The Council’s fault in updating its records occurred more than two years before the impact of COVID-19. It is more likely than not there was avoidable delay by the Council in moving matters forward in this period. Further, the Council recording the incorrect address was a significant factor in it being unable to contact Ms X from 2021 onwards, after it resumed recovery action following COVID-19.
44. Ms X highlighted the impact of the time taken, citing the Council seeking to recover a debt after so many years by using an attachment to her pension. As set out in paragraph 18, it is open to councils to decide what recovery method to use, though they can only utilise one method at a time. The Council ended its use of enforcement agents and opted to use an attachment to Ms X’s pension. It is not fault for the Council to use this recovery method.
45. However, the time taken to contact Ms X, stemming from the Council’s incorrect recordkeeping, has caused Ms X uncertainty about her current financial circumstances. Ms X said it is more difficult for her to pay the bill now than it would have been at the time. This uncertainty is an injustice. There is also uncertainty arising from potential missed opportunities to appeal against liability for the debt to the Tribunal. I cannot say if Ms X would have appealed, or what would have happened if she did. This uncertainty is an injustice to Ms X in itself.
46. The Council told Ms X she could apply for discretionary council tax relief, which the Council could consider under its S13 powers. I understand Ms X has not yet applied. I believe the Council offering to consider its discretionary powers would be an appropriate remedy for the uncertainty caused to Ms X over her financial circumstances and over possible historic loss of appeal rights. If the Council refuses Ms X’s application for council tax relief, Ms X will be able to appeal that decision to the Tribunal. I have addressed this in my recommendations.

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Agreed action

47. I have had regard for the Ombudsman’s Guidance on Remedies when making the following recommendations.
48. Within four weeks of the final decision being issued, the Council has agreed to:
1. Provide a written apology to Ms X for the faults and injustice identified in this statement. The Council should have regard to the Ombudsman’s guidance on “Making an effective apology", set out in our Guidance on Remedies document.
2. Pay Ms X £350 in recognition of the avoidable uncertainty and distress she experienced because of the Council’s faults.
3. Invite Ms X to make an application for discretionary council tax relief under its S13 powers, if an application has not already been made. The Council should consider Ms X’s application and provide her with a written decision. The Council should also ensure it provides Ms X with any right of appeal relevant to its decision.
49. The Council should provide us with evidence it has complied with the above actions.

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Final decision

50. I have completed my investigation with a finding of fault causing injustice. I have made recommendations to remedy the injustice caused.

Investigator’s decision on behalf of the Ombudsman

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Investigator's decision on behalf of the Ombudsman