Summary: We will not investigate this complaint about the Council suspending the complainant’s benefits and conducting a fraud investigation. This is because there are appeal rights the complainant can use, she can defend herself in court, and we cannot achieve the outcome the complainant wants.

The complaint

1. The complainant, whom I refer to as Ms X, complains the Council suspended her housing benefit and council tax support, deliberately used inaccurate information, and delayed doing the fraud investigation. Ms X wants compensation of £50,000, an apology and for the Council to re-instate the benefits.

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The Ombudsman’s role and powers

2. The Ombudsman investigates complaints about ‘maladministration’ and ‘service failure’, which we call ‘fault’. We must also consider whether any fault has had an adverse impact on the person making the complaint, which we call ‘injustice’. We provide a free service, but must use public money carefully. We do not start an investigation if we decide:

• we cannot achieve the outcome someone wants, or
• there is another body better placed to consider this complaint,
• it would be reasonable for the person to ask for a council review or appeal.

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

3. The law says we cannot normally investigate a complaint when someone can appeal to a tribunal. However, we may decide to investigate if we consider it would be unreasonable to expect the person to appeal. (Local Government Act 1974, section 26(6)(a), as amended)
4. 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

5. I considered information provided by Ms X and the Council. This includes the complaint replies and information about the fraud investigation. I considered our Assessment Code and comments Ms X made in reply to a draft of this decision.

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My assessment

6. The Council suspended Ms X’s benefits in May 2020 because it thought she had not disclosed all her income. It started a fraud investigation and has twice interviewed Ms X under caution. The Council is currently preparing a file for criminal proceedings. The Council will decide either to take no further action in relation to the suspected fraud or it will issue a court summons.
7. In June 2021 the Council decided Ms X is not entitled to benefit from January 2017. This is because it decided she had received income during this period that she had not disclosed. The Council asked Ms X to repay housing benefit of £39,343. It notified her of her review and appeal rights. Ms X has asked for a review which the Council is considering.
8. Ms X says the Council has deliberately used wrong information to distort the truth. She complains of delay and has accused the Council of racial discrimination.
9. I will not start an investigation because Ms X can appeal to the tribunal if she disagrees with the Council’s review decision. It is reasonable to expect her to appeal because the tribunal is the appropriate body to consider benefit disputes. The tribunal can decide if Ms X has been overpaid and whether her benefits should be reinstated.
10. I also will not start an investigation because Ms X can raise a defence in court if she is prosecuted. We cannot intervene in criminal proceedings and it would not be appropriate for us to intervene when the Council is considering prosecuting Ms X. In addition, while Ms X accuses the Council of maladministration, her allegations mainly concern the interpretation of the evidence which needs to be dealt with through the appeals system or in court. I have not seen anything to support Ms X’s allegation of racism.
11. Finally, I will not start an investigation because we could not achieve the outcome Ms X wants. We have no power to reinstate her benefits and, even if there had been some fault by the Council, we would not ask it to pay £50,000. In addition, Ms X can raise with the tribunal, or the courts, any concerns she has about the way the Council has interpreted the evidence. The Council has admitted some delay and explained this was partly due to COVID-19 and partly due to the need to request third party information. This does not require an investigation.

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Final decision

12. I will not start an investigation because Ms X can use her review rights, there is an on-going fraud investigation, and we cannot achieve the outcome Ms X wants.

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Investigator's decision on behalf of the Ombudsman