Bury Metropolitan Borough Council (19 019 463)

Category : Benefits and tax > Housing benefit and council tax benefit

Decision : Closed after initial enquiries

Decision date : 04 Aug 2020

The Ombudsman's final decision:

Summary: The Ombudsman cannot investigate this housing benefit complaint. This is because the complainant appealed to the tribunal and because there is insufficient evidence of fault by the Council.

The complaint

  1. The complainant, whom I refer to as Mrs X, says the Council misled her which led to her claim for housing benefit being refused. Mrs X wants the Council to pay the benefit she is entitled to.

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The Ombudsman’s role and powers

  1. 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)
  2. We cannot investigate a complaint if someone has appealed to a tribunal. (Local Government Act 1974, section 26(6), as amended)
  3. The Social Entitlement Chamber (also known as the Social Security Appeal Tribunal) is a tribunal that considers housing benefit appeals. (The Social Entitlement Chamber of the First Tier Tribunal)

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How I considered this complaint

  1. I read the complaint and the appeal bundle the Council sent to the tribunal. I invited Mrs X to comment on a draft of this decision.

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What I found

What happened

  1. Many years ago Mrs X gifted her home to her son. In 1997 she moved into a different property owned by her son. She planned to live in the property rent free.
  2. In 2019 Mrs X applied for housing benefit because her son could no longer afford for her to live there rent free. The Council rejected the application because there was a lease agreement which meant she was ineligible for housing benefit.
  3. Mrs X said she would remove the lease agreement. The Council said it did not know if this would mean she would get benefit.
  4. Mrs X changed the lease. The Council then refused the claim on the basis that she was not living in a commercial tenancy and that the tenancy had been created to take advantage of the housing benefit scheme.
  5. Mrs X appealed to the tribunal. The tribunal confirmed the Council’s decision that Mrs X is not entitled to housing benefit.

Assessment

  1. The law says the Ombudsman cannot investigate any matter that has been the subject of an appeal to the tribunal. The tribunal has decided Mrs X is not entitled to housing benefit. This means I have no power start an investigation and no power to ask the Council to award housing benefit to Mrs X.
  2. Mrs X says the Council misled her. However, the conditions relating to Mrs X’s home were created in 1997 and the Council simply made a decision based on the facts when Mrs X made the initial benefit application. The Council also told Mrs X that there was no guarantee she would receive benefit if she changed the lease. There is nothing to suggest the Council misled Mrs X.

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Final decision

  1. I cannot start an investigation because Mrs X appealed to the tribunal and because there is insufficient evidence of fault by the Council.

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Investigator's decision on behalf of the Ombudsman

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