Sefton Metropolitan Borough Council (24 012 520)

Category : Benefits and tax > Council tax

Decision : Upheld

Decision date : 25 Nov 2024

The Ombudsman's final decision:

Summary: We will not investigate this complaint about a council tax error because the Council has agreed a fair remedy.

The complaint

  1. The complainant, Mr X, complains the Council closed his council tax account and then tried to take a large sum by direct debit without any warning. Mr X wants the Council to waive the council tax for the period when his account was closed and pay compensation.

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The Ombudsman’s role and powers

  1. We investigate complaints about ‘maladministration’ and ‘service failure’. In this statement, I have used the word fault to refer to these. We provide a free service but must use public money carefully. We may decide not to start an investigation if we are satisfied with the actions an organisation has taken or proposes to take. (Local Government Act 1974, section 24A(7), as amended)

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How I considered this complaint

  1. I considered information provided by Mr X and the Council. This includes the complaint correspondence and an update from the Council. I also considered our Assessment Code.

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My assessment

  1. The Council made an error and wrongly closed Mr X’s council tax account in January 2022. The Council sent a closing bill in May 2022. Mr X says he did not know the Council had closed the account and thought he was continuing to pay by direct debit.
  2. The Council became aware of the error in November 2023. It sent an email in November explaining what had happened, apologising and saying it would send a new bill. It said it would review its procedures and invited Mr X to get in touch if he needed longer to pay. Mr X remained unaware of what had happened until he was alerted by his bank that the Council was attempting to take £959. Mr X stopped the payment and cancelled the direct debit.
  3. During the subsequent complaint correspondence, the Council gave more detail about what had gone wrong and invited Mr X to set up a payment plan for the arrears; it asked Mr X to get in touch if he needed longer to pay and sent a financial statement so he could make an offer based on his circumstances. The Council said it could not cancel the arrears because Mr X is liable for the council tax from January 2022. The Council started legal proceedings but withdrew the summons, partly because it accepted there had been some delays in responding to letters.
  4. The current position is that Mr X owes more than £4000 in council tax; this is a combination of the arrears and his current council tax. The Council has continued to ask Mr X to pay and/or agree a payment plan.
  5. Mr X has not paid or set up a plan; in November the court issued a liability order confirming Mr X must pay the council tax and costs.
  6. I asked the Council to withdraw the recent court costs and make a symbolic payment of £100. The Council agreed.
  7. The Council made an error. It closed Mr X’s account and did not become aware of the mistake for almost two years. Mr X did not know what had happened and says he has no need to check his account because he knows his bills are being paid. There was a period of complaint correspondence and some delayed responses by the Council. The Council issued a summons earlier in the year which could possibly have been avoided.
  8. However, despite the error and some delay, I will not start an investigation. The Council apologised, explained what went wrong, will take steps to improve its service and invited Mr X to make an affordable payment plan. I can understand why Mr X may feel aggrieved, but it is correct he remains liable for the council tax and he benefitted from services while his account was closed. The Council only resumed recovery action because Mr X has not paid the arrears or the current council tax. I acknowledge having such a large bill may be financially hard, but the Council is willing to work with Mr X to agree an affordable plan.
  9. I recognise, however, that there have been some delays and the events would have caused some avoidable time, trouble and stress to Mr X. For this reason I asked the Council to pay £100 and remove the court costs.
  10. Mr X remains liable for the council tax. The Council may decide to take further recovery action if Mr X does not pay the arrears and his current council tax.
  11. Mr X raised some other complaints including that officers do not include their names on letters and that the Council should put action on hold while someone is in dispute. I have considered the additional points made by Mr X but there is nothing that requires an additional remedy or an investigation.

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Final decision

  1. We will not investigate Mr X’s complaint because the Council has provided a satisfactory remedy.

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Investigator's decision on behalf of the Ombudsman

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