Summary: The complainant, X, complained that a Cyber Attack on the Council’s systems meant they were unable to pay Council Tax at the time. X was billed for Council Tax during the financial year and so the Council’s offer of a payment plan is reasonable. There was fault, as the Council failed to tell X of the right to appeal to the Valuation Fund after an application to the Council Tax Reduction Discretionary Fund was refused. Apologising and writing to X to give the right of appeal remedies the injustice.

The complaint

1. The complainant, who I shall call X, complains they could not pay their Council Tax due to a Cyber Attack. X says the delay in being able to pay the bill meant they no longer had the money and as it was the Council’s error, the bill should be cancelled. X says the payment plan now arranged to clear the debt is causing financial hardship.

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The Ombudsman’s role and powers

2. 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)
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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What I have and have not investigated

4. I have investigated the complaint that the Council did not tell X of their right to appeal to the Valuation Tribunal after making a decision not to award a payment from the Council Tax Reduction Discretionary Fund.
5. 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)
6. I have not investigated the Council’s decision on whether to award a payment from the Council Tax Reduction Discretionary Fund. This is because the Valuation Tribunal gives a right of appeal against the Council’s decision on the Fund and it is reasonable for X to use this right.

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How I considered this complaint

7. I considered evidence provided by X and the Council as well as relevant law, policy and guidance.
8. X and the Council had an opportunity to comment on my draft decision. I considered any comments before making a final decision.

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What I found

9. X moved into a property in September 2021. The Council sent a Council Tax Bill on 23 March 2022. X says they did not receive a letter, but the Local Government Act 1972 (Section 233) says the document may be served on a person by sending it by post to their proper address. There is no need to use registered or recorded post.
10. The Council has said it was late sending the Bill due to a Cyber Attack that affected billing for all in its area but X was billed within the financial year while they were living at the property. X moved out in September 2022.
11. X says they made multiple attempts to pay the Council Tax at the time but could not as they were told the account did not exist. X says they could have paid the bill at time but cannot now as they are out of work.
12. X made an official complaint to the Council, who said they could make a claim to the Council Tax Reduction Discretionary Fund. X made a claim.
13. The Council wrote to X in February 2024 to say 'there is no right to appeal this decision (on the Council Tax Reduction Discretionary Fund) to the Tribunals Service. You may ask for an internal review, where an officer (different from the original officer who decided your claim) will check the decision was properly made and consider any more matters that you raise'.
14. The Council's policy sent to me says that 'the Valuation Tribunal has confirmed that applicants have a right of appeal to the valuation tribunal against a decision to refuse a discretionary award'.
15. The statement made in the Council's letter of 23 February 2024 was misleading and inaccurate. This is fault. It should have said 'you have a right to appeal, but first we will do an internal review'.
16. The Council has said that to remedy the fault it will draft a response to X to give the right to appeal to the Valuation Tribunal and apologise to X. This remedies the injustice to X as they can appeal to the tribunal to challenge the Council’s decision.
17. X has explained they consider the amount to pay should be reduced because of their time and trouble and the Council not answering letters. X says they could have paid the Council Tax at the time and it is the Council’s fault they could not. X says now they cannot pay and so the Council should waive the charge. X has now set up a payment plan to pay the Council Tax back.
18. The Ombudsman has taken the view on complaints relating to the Cyber Attack, that residents would have known they needed to pay Council Tax. So, we have no grounds to ask the Council to waive the charge.
19. X says the Council was wrong to suggest they apply to the Council Tax Reduction Discretionary Fund, as they were not eligible under the Council’s policy as they were not on benefits at the time the debt occurred. I cannot know at present what decision the Valuation Tribunal will make if X appeals. So, I cannot make any judgement on whether or not the Council was wrong to make the suggestion of applying to the Council Tax Reduction Discretionary Fund. If there was any doubt, then the Council should always give residents information on Funds that could help. Giving information is not a guarantee that an application will be successful.

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Action

20. Within one month of the date of the decision on this complaint the Council should:
• Apologise to X. We publish guidance on remedies which sets out our expectations for how organisations should apologise effectively to remedy injustice. The organisation should consider this guidance in making the apology I have recommended in my findings.
• Write to X to give the right to appeal to the Valuation Tribunal.
• Send evidence to show that its procedures and standard letters have been updated to ensure information is given that there is a right of appeal to the Valuation Tribunal.
21. The Council should provide us with evidence it has complied with the above actions.

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Decision

22. I find fault causing injustice. The Council has agreed actions to remedy injustice.

Investigator’s decision on behalf of the Ombudsman

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Investigator's decision on behalf of the Ombudsman