Summary: The Ombudsman will not investigate this complaint that the Council did not give the complainant proper advice about the consequences of claiming Universal Credit. This is because there is insufficient evidence of fault by the Council.

The complaint

1. The complainant, whom I refer to as Mr X, complains that the Council did not explain the full consequences of claiming Universal Credit.

Back to top

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’. We provide a free service, but must use public money carefully. We may decide not to start an investigation if we believe it is unlikely we would find fault. (Local Government Act 1974, section 24A(6), as amended)
3. We investigate complaints about councils and certain other bodies. We cannot investigate the actions of the Department for Work and Pensions (DWP). (Local Government Act 1974, sections 25 and 34A, as amended)

Back to top

How I considered this complaint

4. I read the complaint and the Council’s responses. I considered information about Universal Credit. I invited Mr X to comment on a draft of this decision.

Back to top

What I found

Universal Credit (UC)

5. UC is a new benefit which the government is gradually rolling out across the country. It is administered by the DWP. UC replaces six benefits including housing benefit and tax credits. If someone lives in an area where UC is operating then they must claim UC rather than housing benefit.
6. Some people may be financially better off remaining on tax credits rather than moving to UC. However, most people will be moved to UC at some point. People would need specialist advice to determine if they would be better off delaying a move to UC. A welfare rights adviser, or a solicitor, could provide this advice.
7. The Council became a full UC area on 12 December 2018. After this date people could not claim housing benefit. They had to apply for UC.

What happened

8. In January 2019 Mr X approached the Council. His savings had decreased and he wanted to apply for housing benefit. The Council told him he would need to apply for UC. Mr X was not keen but made a claim. The Council helped him to complete the application. The UC application triggered the end of Mr X’s claim for tax credits.
9. Mr X visited the job centre which is the next stage in the UC application process. The job centre is run by the DWP. He had changed his mind about claiming UC and asked if he could withdraw his claim. The DWP told him he could but he could not re-claim tax credits. Mr X says this would amount to a loss of £470 a month. Mr X says he would not have applied for UC if he had been given advice about all the consequences and pitfalls.
10. In response to his complaint that the Council explained that he could not have claimed housing benefit because, when he applied, he was living in a UC area. It also explained that its staff help people make the claim but they do not give detailed benefit advice. The Council suggested Mr X get benefit advice from a benefits adviser.

Assessment

11. I will not start an investigation because there is insufficient evidence of fault by the Council.
12. Mr X could not claim housing benefit because he lives in an UC area. When he approached the Council about claiming housing benefit he was correctly told he would need to apply for UC. But, it was not the role of the Council to provide detailed advice and explain all the potential consequences. If Mr X had doubts, or wanted more information about UC, then he needed to have contacted the DWP or a specialist benefits adviser. The Council did not set up UC and it does not administer UC. The Council’s role is to explain that people can no longer claim housing benefit and to help people to submit a claim for UC..
13. Mr X is critical of the impact UC has on tax credits and in the general operation of UC. However, these are queries and concerns he would need to raise with the DWP. The Council has no control over the operation of UC.

Back to top

Final decision

14. I will not start an investigation because there is insufficient evidence of fault by the Council.

Back to top

Investigator's decision on behalf of the Ombudsman