Summary: Miss X complains the Council incorrectly offered her a refund she was not entitled to. She says this caused her distress. We find the Council at fault with no further remedy required. This is because we are satisfied the Council has remedied the injustice caused to Miss X.

The complaint

1. Miss X complains about the Council’s handling of her council tax account. Specifically, she complains the Council incorrectly offered her a refund she was not entitled to and then billed her for the refunded amount.
2. Miss X says this has caused her distress and impacted her mental health.

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The Ombudsman’s role and powers

3. 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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How I considered this complaint

4. I considered the information and documents provided by Miss X and the Council. Miss X and the Council had an opportunity to comment on a draft of this decision. I have considered all comments received before making this final decision.
5. I also considered the relevant statutory guidance, as set out below.

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What I found

What should have happened

6. 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.
7. 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).
8. 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.
9. 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.

What happened

10. In February 2023, Miss X’s utility company wrongly informed the Council she moved out of the property in January.
11. In August, the Council sent Miss X a letter which told her that her council tax account was in credit because her liability to pay council tax for the property had ceased in January. It advised her to request a refund. Miss X called the Council to question the refund and ended the call before she spoke to an officer.
12. Miss X also moved out of the property in August. She completed the refund request form which included dates she had moved in and out of the property. She included her correct moving dates on the form.
13. In September, Miss X received the refund. Shortly afterwards, the Council sent her a council tax bill for money owed from January to August.
14. Miss X contacted the Council several times to discuss the error. The Council made several attempts to return her calls.
15. In October, the Council told Miss X although the refund was a mistake, she needed to pay her council tax arrears. It offered her a 24-month repayment plan. Miss X declined and said she planned to complain.
16. The Council put her council tax account on hold until March 2024. During this time, Miss X did not contact the Council or complain.
17. In July, the Council sent Miss X a final reminder letter for her council tax arrears. The same day, she made a formal complaint.

Analysis

18. The Council updated Miss X’s records using incorrect information from her utility company. The Council says it will not update council tax accounts using information provided solely by utility companies in future. I am satisfied the Council has taken appropriate action to prevent recurrence.
19. The Council accepts it should have noticed Miss X provided a different moving date and questioned it before issuing the refund. This is fault. The Council says it will take action to remind its staff to check liability end dates, and if different, to contact the occupier before issuing a refund. I am satisfied with the Council’s proposed action to improve its service.
20. Miss X says she did not see the liability dates on the letter which also advised her to seek a refund. She called the Council to question the refund before completing the application form, but she ended the call before speaking to anyone. It was reasonable for Miss X to read the information provided and raise any questions she had with the Council before applying for the refund.
21. The Council noticed its error within two weeks of Miss X requesting the refund. It then sent out an amended bill to Miss X within two working days of noticing its error. I am satisfied the Council acted promptly once it noticed its error. The Council also offered her a 24-month repayment plan. It is Miss X’s choice whether to accept its offer.
22. The Council’s fault caused Miss X injustice in that it caused her uncertainty because she was unsure whether she was entitled to a refund. However, given the Council’s prompt actions when it noticed its error, and the options it has given her for repayments, I consider the injustice to Miss X is limited.
23. I am satisfied the Council’s proposed actions to prevent a recurrence, and its apology to Miss X for the stress and upset it caused her, remedy any injustice caused to Miss X by its error.

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Final decision

24. I have completed my investigation. I find the Council at fault with no further remedy required because I am satisfied the Council has remedied the injustice caused to Miss X.

Investigator’s final decision on behalf of the Ombudsman

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Investigator's decision on behalf of the Ombudsman