Summary: Mrs X complains about how the Council dealt with her council tax cheques during the COVID-19 restrictions. There was poor communication by the Council, which caused Mrs X avoidable confusion and contributed to her accruing council tax arrears. At our recommendation, the Council has agreed to pay Mrs X £150 and to discuss a repayment arrangement with her. Therefore we shall not take further action on this complaint.

The complaint

1. Mrs X complains the Council did not deal with her properly regarding her council tax payments. She says this caused confusion and unexpected council tax arrears of over £400.

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The Ombudsman’s role and powers

2. This complaint involves events that occurred during the COVID-19 pandemic. The Government introduced a range of new and frequently updated rules and guidance during this time. We can consider whether the Council followed the relevant legislation, guidance and our published “Good Administrative Practice during the response to Covid-19”.
3. We can decide whether to start or discontinue an investigation into a complaint within our jurisdiction. (Local Government Act 1974, sections 24A(6) and 34B(8), as amended)

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How I considered this complaint

4. I considered the information Mrs X provided. I wrote to the Council suggesting a remedy, which the Council agreed. I gave Mrs X the opportunity to comment on my draft decision.

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What I found

5. Mrs X habitually pays her council tax by posting a cheque to the Council each month. In late March 2020, the Government encouraged people to work from home where possible, to reduce the risk of spreading COVID-19. After that, Mrs X sent the Council a cheque for April’s council tax, which the Council processed in the usual way.
6. In May, the Council decided to stop processing cheque payments to reduce the need for staff and others to visit its offices to deal with cheques, as a COVID-19 precaution. There was no fault in that.
7. The Council did not contact Mrs X about the change then, it says because competing priorities at that time meant it did not write personally to those paying by cheque. It states it publicised the change through its website, social media, the local press and local parish councils. Mrs X was unaware of the change and continued sending monthly cheques to the Council.
8. After that, I consider the following points amounted to fault by the Council:
1. The Council wrote to Mrs X on 11 August 2020 saying it had been unable to present her 5 July cheque. However, that letter did not state the May or June cheques were not presented either, nor did it state the Council would not accept further cheques. I note the Council later accepted this letter did not give enough information for Mrs X to understand the situation.
2. The Council accepts Mrs X did not receive an appropriate service when she telephoned the Council to try to discuss the matter. I note the Council apologised.
3. On 22 September, the Council wrote saying it had not cashed any of Mrs X’s cheques ‘to date’ but did not explain what ‘to date’ meant. That was confusing, because the letter referred to the Council’s offices being closed since March but did not say the Council had nevertheless cashed Mrs X’s cheques for March and April and had stopped processing cheques in May.
4. The Council wrote to Mrs X 19 October, which was the first time the Council said it had stopped processing cheques in May. However, that letter went on to say the Council would return to Mrs X the three cheques it was currently holding. That was inaccurate, as the Council was actually holding six uncashed cheques from Mrs X, which it later returned to her.
9. Mrs X reported that this series of events meant when the cheques were returned in October, she was surprised to realise she owed several months’ council tax that she thought she had paid, amounting to over £400. Mrs X says meanwhile she had spent the money intended for council tax payments, not realising the cheques had not been cashed.
10. I note Mrs X seemingly did not check her bank statements during the time the Council was not processing cheques, so she did not see those payments had not left her bank account. Evidently that contributed to the confusion, so I consider Mrs X bears some responsibility for that. However, I do not consider that point removes the Council’s responsibility for Mrs X’s confusion and the resulting council tax arrears.
11. The council tax is evidently owed. In the circumstances I do not consider it appropriate to invite the Council to write off any of the arrears. Nevertheless, I consider some remedy is necessary.

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Agreed action

12. At my recommendation, the Council has agreed to:
1. Agree with Mrs X an affordable repayment arrangement and period for any council tax arrears.
2. Pay Mrs X £150 to recognise the confusion, time and trouble caused by the Council’s communications. The Council can offset this against the arrears.
13. The Council agreed to contact Mrs X about this within one month of today.

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Final decision

14. The Ombudsman will not investigate this complaint. This is because the Council has now agreed a suitable remedy.

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Investigator's decision on behalf of the Ombudsman