Summary: We will not investigate Miss X’s complaint that the Council incorrect stopped her council tax direct debit, which resulted in her account falling into arrears. This is because the claimed fault has not caused any significant injustice.

The complaint

1. Miss X complains about the Council’s handling of her council tax account. She says the Council stopped her direct debit despite not being instructed to do this, which led to her account falling into arrears. She says trying to fix the Council’s error has caused her distress.

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The Ombudsman’s role and powers

2. 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)
3. The Valuation Tribunal deals with appeals against decisions on council tax liability and council tax support or reduction.
4. 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 any injustice is not significant enough to justify our involvement. (Local Government Act 1974, section 24A(6), as amended, section 34(B)

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How I considered this complaint

5. I considered information provided by the complainant and the Council.
6. I considered the Ombudsman’s Assessment Code.

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My assessment

7. Miss X was paying council tax on behalf of her tenants via direct debit. Before September 2023, the council tax account was in her tenant’s name. The Council confirmed direct debits are linked to a specific council tax account reference. Once a council tax account is closed, the direct debit will also be stopped.
8. The Council said it set up a new account in Miss X’s name in September 2023. This meant the old council tax account that was in her tenant’s name was cancelled, alongside the direct debit.
9. There is no evidence the Council told Miss X that her direct debit would be cancelled when the new council tax account was set up in her name. Therefore, I am satisfied Miss X could not have known the direct debit had been cancelled and that her council tax was not being paid.
10. However, there is evidence the Council sent Miss X council tax reminders and bills to her home address. Miss X said the reminders and bills went to her rented property, but the evidence provided by the Council and Miss X shows the postal address on the bills as her home address.
11. Therefore, on balance, I am satisfied the Council did issue appropriate council tax reminders and bills to Miss X’s home address to make her aware of her arrears. Miss X also confirmed she received a summons from the Council in January 2024. Therefore, from this point, I am satisfied there was sufficient information for Miss X to have been aware of her council tax arrears and her liability to pay.
12. The Council suspended recovery action while it dealt with Miss X’s complaint. The Council sent Miss X a detailed breakdown of her council tax arrears in July 2024. Miss X complained to the Ombudsman in the same month.
13. It is acknowledged Miss X could not have known her direct debit would be cancelled when the new council tax account was set up. However, as noted, the Council did appropriately issue reminders and bills to Miss X’s home address. If Miss X had been confused about why bills were being sent, it was reasonable for her to have contacted the Council to clarify.
14. I am satisfied it is not appropriate for us to recommend the Council waive Miss X’s council tax arrears. This is because we are not likely to find fault with the Council for cancelling the direct debit as the Council has a clear reason for doing so. In any case, even if there had been fault, I am satisfied it did not cause Miss X any significant injustice. This is because if the Council had not cancelled the direct debit in September 2023, Miss X would have paid the amount due (which is the same amount she now owes). Therefore, Miss X is still in the exact same position she would have been.
15. I note Miss X disputes the Council’s calculation of council tax due. The Council has provided a full breakdown of its calculations. If Miss X disputes her liability for council tax or considers the Council has not appropriately applied a relevant discount or disregard, then it is reasonable and appropriate for her to appeal to the Valuations Tribunal.
16. Finally, Miss X received a court summons in September 2024. She said on receipt of this, she contacted the Council to ask them to withdraw the summons due to her complaint being considered by us. She said the Council agreed, but she later received a liability order in October 2024.
17. We asked the Council to waive all fees associated with the summons and liability order as we would usually ask councils to suspend all recovery action while a complaint is being considered by us. The Council agreed to do this. The Council confirmed the liability order will remain in place, which I am satisfied with.

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Final decision

18. We will not investigate Miss X’s complaint because the claimed fault has not caused any significant injustice.

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Investigator's decision on behalf of the Ombudsman