Summary: The complainant says the Council failed to properly consider whether she might be a ‘legacy benefits applicant’ when advising her to apply for Universal Credit. The Council says it advised the complainant to seek Universal Credit to help with her financial circumstances and told her about the advice services it offers so she could gain further advice. The complainant did not share any further information about her circumstances but applied for Universal Credit and lost her tax credit entitlement. This led to her being financially worse off. The Ombudsman finds the Council acted without fault in giving general advice and offering further advice through its advice centre which offers a ‘better off’ calculation when checking a person’s financial circumstances.

The complaint

1. The complainant whom I shall refer to as Mrs X, complains that when she approached the Council for help it failed to:
• Give clear unambiguous advice in response to Mrs X’s email;
• Recognise Mrs X may be financially worse off claiming Universal Credit and offer her a ‘better off’ calculation;
• Conduct a ‘better off’ calculation to see if Mrs X would be better off continuing to claim tax credits.
2. Mrs X says had the Council carried out the ‘better off’ calculation instead of telling her to claim Universal Credit she would have received higher benefit payments through tax credits.

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The Ombudsman’s role and powers

3. 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 an injustice, we may suggest a remedy. (Local Government Act 1974, sections 26(1) and 26A(1), as amended)
4. We cannot question whether a council’s decision is right or wrong simply because the complainant disagrees with it. We must consider whether there was fault in the way the decision was reached. (Local Government Act 1974, section 34(3), as amended)
5. If satisfied with a council’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

6. In considering this complaint I have:
• Read the information presented by Mrs X’s representative and the Council’s response to her complaint;
• Put enquiries to the Council and reviewed its response;
• Researched the relevant law, guidance and policy;
• Shared with Mrs X (through her representative) a draft decision and reflected on the comments received.

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What I found

7. The Council is one of the first areas in which the government rolled out its Universal Credit programme. Universal Credit which replaces several other benefits, is now the benefit offered to all new claimants in the Council’s area.
8. Mrs X received a Personal Independence Payment from the Department for Work and Pensions (DWP). Mrs X also received Tax credits. In June 2018 the DWP stopped payment of the Personal Independence Payment leaving Mrs X and her family with less income. On 25 August 2018 Mrs X sent an email to the Council saying that she had appealed against the DWP’s decision. While waiting for the appeal decision her landlords had begun the eviction procedure. Mrs X asked the Council if she received a notice from her landlord must she leave immediately. Mrs X explained she had never faced such circumstances before and did not know what to do. She asked the Council for guidance.
9. On 30 August 2018 the Council replied by email. The Council’s email said that if the landlord served a Notice of Seeking Possession then it recommended Mrs X attend its Housing Options drop-in service at the One Stop Shop. The Council set out the One Stop Shop’s opening hours. The email explains the service can check if the notice is valid and give advice on her housing choices and tenancy rights.
10. In the email the Council also advised Mrs X to apply for Universal Credit. The email gave the government website address which gives details on claiming Universal Credit. The Council’s email also says Mrs X may be able to claim a Discretionary Housing Payment and gave details of where she could find information about that on the Council’s website. The email gave the author’s name and contact details so Mrs X could raise any concerns or questions direct with the officer.
11. Mrs X says that is all the Council told her. It did not warn her that if she claimed Universal Credit, she may in fact be worse off because she may lose her tax credit. Mrs X says the Council did not try to telephone her. The Council says her email says her telephone may be cut off and so it decided to respond by email.
12. On 5 September 2018 Mrs X applied for Universal Credit. This resulted in the closure of her Tax Credit claim resulting in a loss of benefit. Mrs X believes this is the direct result of the Council’s advice to apply for Universal Credit.
13. Mrs X complained to the Council. In its response the Council says that deciding to make a claim and the assessment of the claim rests with Mrs X and the DWP. The Council also explained that had Mrs X attended its drop-in centre officers could gather further information and use a benefits calculator to calculate if Mrs X would be ‘better off’ remaining on tax credit rather than moving to Universal Credit. However, the Council says without seeing Mrs X it could not fully assess her financial or housing circumstances. In its response it says when applying on- line for Universal Credit the applicant receives a warning that they may be worse off.
14. In response to my enquiries into the complaint the Council says it decided to tailor its response to the facts as Mrs X had set them out in her email. To the Council it appeared sensible to direct a person who may be about to lose their home due to rent arrears to seek financial help. Without more information it could not offer further advice. The Council did not have any information to suggest Mrs X might qualify as a ‘legacy benefit’ applicant. A legacy benefit application is someone who has previously claimed a benefit and who may be entitled to a ‘better off’ calculation. This calculation is where the Council or DWP considers if the applicant might be better off staying on their current benefit or moving to Universal Credit. The Council says it is not unreasonable to consider from Mrs X’s email of 25 August 2018 that she did not receive any benefits.
15. The Council says had Mrs X contacted the Council again and offered further information it would have considered if it should conduct a ‘better off’ calculation.
16. The Council says it does not have a statutory duty to consider if Mrs X might be better off remaining on existing benefits. It provides an advice and information service. It provides advice through its drop-in centre in the One Stop Shop.

Analysis – was there fault leading to injustice?

17. My role is to consider if the Council gave enough information to Mrs X in response to her query to enable her to access its advice services. It is not for me to say whether Mrs X would be better off remaining on tax credits or moving to Universal Credit.
18. The DWP administers Universal Credit. Where someone claims Universal Credit through the DWP that agency may be under a duty to consider if they would be better off remaining on what it calls legacy benefits. The DWP is outside our jurisdiction so I cannot decide that issue. The Council rightly directed Mrs X to the website containing information about Universal Credit from which she could decide if she should make a claim.
19. The Council offers advice through the drop-in centre in the One Stop Shop five days a week with no appointment needed. Advisers can take full details of a person’s circumstances and offer advice both on the notice seeking possession and on claiming benefits. Had Mrs X presented details of her circumstances to an adviser the Council may have conducted a ‘better off calculation’ but it could not decide that from the email it received.
20. Did the Council give enough advice in its email in response to Mrs X’s request for guidance? I find that it did. The response gave details of how Mrs X could access fuller advice and information. Mrs X could call or email the author of the email from the Council. Or, Mrs X could visit the advisers to discuss her circumstances in more detail. Mrs X also had access to the DWP, and government websites designed to inform and help claimants decide if they should make a claim for Universal Credit. The DWP website directs enquirers to help provided by the Citizens Advice Bureau. Mrs X could not expect more detailed advice or a ‘better off’ calculation without giving further information about her circumstances because the law governing tenancy rights and benefits is complex.
21. The Council gave clear information on where Mrs X could access advice both on her tenancy issue (the notice to quit) and benefits issue (Universal Credit). The websites referred to for Universal Credit provide more detailed information to help claimants understand the impact of making a claim. I therefore find the Council acted without fault in the information given in its response.

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Final decision

22. In completing my investigation, I find the Council acted without fault.

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Investigator's decision on behalf of the Ombudsman