Summary: The Ombudsman will not investigate this complaint about problems the complainant had in getting a £10 housing benefit refund. This is because there in insufficient evidence of fault and injustice.

The complaint

1. The complainant, whom I refer to as Mrs X, complains about the way the Council handled a £10 refund. She wants the refund.

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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’. 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, or
• the injustice is not significant enough to justify our involvement.

(Local Government Act 1974, section 24A(6), as amended)

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How I considered this complaint

3. I read the complaint and the Council’s responses. I considered comments Mrs X made in reply to a draft of this decision.

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What I found

4. In September 2018 the Council asked Mrs X to repay a housing benefit overpayment of £17. Mrs X set up a standing order to pay £5 a month. She paid £5 in October, November and December. She made another two payments in January.
5. Mrs X contacted the Council in early February for an update. The Council replied two days later to say she was in credit by £10. It sent a bank transfer form so she could claim the refund. Mrs X replied but, unfortunately, used the wrong email address. The Council was unaware of her response.
6. Mrs X chased the Council in early April. The Council sent another refund form and asked for proof of the bank account from which she had made the payments. Mrs X returned the form but did not provide proof of the bank account. Mrs X says she made many phone calls to the Council and explained that she was waiting for information from her bank so she could provide the evidence the Council had requested.
7. The Council then transferred the £10 credit to Mrs X’s council tax account. Mrs X says it did this even though she had explained she was waiting for information from her bank. The Council did not tell Mrs X it had made the transfer.
8. In response to her complaint the Council said Mrs X could either provide the bank details and apply for a refund or she could ask the Council to adjust her council tax direct debit so that for one month she paid £10 less. The Council said it had reviewed its practice and will now tell people when it transfers a credit into the council tax account.
9. Mrs X says the process has been very stressful and time consuming. She wants the refund. She says she has not seen any evidence of the £10 council tax credit and hercouncil tax direct debit has not been reduced.

Assessment

10. I will not start an investigation because there is insufficient evidence of fault by the Council. The Council issued the refund form and asked for the bank details. This did not lead to the Council issuing the refund either due to Mrs X making a mistake with the email address or because she was unable to immediately provide the bank details. Because the Council did not receive the documents to allow it to make a refund it moved the credit to Mrs X’s council tax account. It did not tell Mrs X but has agreed to tell people in the future. The Council has told Mrs X that she can either leave the £10 in her council tax account and pay £10 less in council tax. Or she can complete the refund process. Mrs X needs to contact the Council to either ask it to alter her direct debt or to complete the process to get the refund. If Mrs X takes no action the £10 will remain on her council tax account. Mrs X can contact the council tax department if she wants to check the credit has been made.
11. I also will not start an investigation because there is insufficient evidence of injustice. Mrs X found the process stressful and time consuming and she has made many phone calls trying to get the refund. However, problems obtaining a £10 refund do not represent enough injustice to require an investigation by the Ombudsman. In addition, the Council has told Mrs X what she needs to do to either reduce her council tax by £10 or obtain the refund.

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Final decision

12. I will not start an investigation because there is insufficient evidence of fault and injustice.

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Investigator's decision on behalf of the Ombudsman