London Borough of Tower Hamlets (24 004 178)

Category : Benefits and tax > Council tax

Decision : Closed after initial enquiries

Decision date : 31 Jul 2024

The Ombudsman's final decision:

Summary: We will not investigate this complaint about the Council’s decision not to waive court costs incurred for council tax arrears. This is because there is insufficient evidence of fault by the Council.

The complaint

  1. The complainant, Ms X, says the Council did not tell she had council tax to pay and complains the Council will not waive the court costs. Ms X wants the Council to remove the court costs.

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The Ombudsman’s role and powers

  1. We investigate complaints about ‘maladministration’ and ‘service failure’, which we call ‘fault’. We must also consider whether any fault has had an adverse impact on the person making the complaint, which we call ‘injustice’. We provide a free service, but must use public money carefully. We do not start an investigation if we decide there is not enough evidence of fault to justify investigating. (Local Government Act 1974, section 24A(6), as amended, section 34(B))

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How I considered this complaint

  1. I considered information provided by Ms X and the Council. This includes the complaint correspondence. I also considered our Assessment Code.

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My assessment

  1. The law says people must pay their council tax before the monthly instalment date. If people do not pay they lose the right to pay by instalments. The Council can then demand they pay the full amount due for the rest of the tax year. If they do not pay the Council can serve a summons and ask the magistrates for a liability order. A liability order is court order confirming the person must pay the council tax and costs. The person incurs costs as soon as the Council issues the summons.
  2. Ms X is registered for e-billing and can access her council tax account through a portal. The Council sent an e-bill in March 2023 for 2023/24; the first payment was due by 1 April. The Council did not receive the payment so it sent an e-reminder and then a formal reminder by post. The Council still did not receive any payments so it served a summons and the court issued a liability order in July. The Council sent the summons by post, as required by the law.
  3. Ms X says she was unaware of the council tax bill and arrears until October. She says she did not receive the bill and complains the Council used the post rather than email.
  4. Ms X contacted the Council and set up a payment plan from November. She said she had last made a council tax payment in March. Ms X asked the Council to remove the court costs because she was unaware of the bill until October.
  5. The Council explained it had sent the initial bill by email and the first reminder. It explained it is required to use the post for the formal reminder and summons, and none of the documents had been returned as undelivered. It said Ms X was aware she had not paid any council tax since March and could have logged onto the portal to see the status of her council tax account. The Council said it would not waive the court costs because it incurs costs when it takes recovery action, and the arrears were caused by inaction by Ms X.
  6. We will not investigate this complaint because there is insufficient evidence of fault by the Council. The Council acted correctly by issuing the bill in the format requested by Ms X and followed it up with an e-reminder. I do not know why Ms X did not see any of the e-documents but there is nothing to suggest fault by the Council. The Council also sent documents by post, as it is required to do. Again, I do not know why Ms X did not receive them, but the Council did not receive them back as undelivered mail and it is not responsible for problems with the post.
  7. Ms X did not make any payments between April and October. The Council served a summons and obtained a liability order because it had not received any payments. The Council followed the correct process and Ms X correctly incurred costs as soon as the Council issued the summons.
  8. I acknowledge Ms X says she was unaware of the council tax until October but there is nothing to suggest fault in the way the Council managed the arrears or charged costs. Ms X has been a council tax payer since 2021 so it is reasonable to expect she would have realised she should be making payments and could have checked her on-line account or contacted the Council.

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Final decision

  1. We will not investigate this complaint because there is insufficient evidence of fault by the Council.

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Investigator's decision on behalf of the Ombudsman

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