Summary: We will not investigate this complaint about the Council’s decision not to retrospectively increase the complainant’s housing benefit. This is because there is insufficient evidence of fault by the Council and because we cannot achieve the outcome the complainant wants.

The complaint

1. The complainant, whom I refer to as Mr X, complains the Council will not retrospectively increase his housing benefit to take into account that he now has to repay a tax credit overpayment so his income has retrospectively decreased. Mr X wants the Council to increase his housing benefit to take the tax credit repayment into account.

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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:

• there is not enough evidence of fault to justify investigating, or
• we cannot achieve the outcome someone wants.

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

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How I considered this complaint

3. I considered information provided by Mr X and the Council. This includes the complaint correspondence and the regulations. I also considered our Assessment Code and comments Mr X made in reply to a draft of this decision.

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My assessment

4. Mr X received housing benefit until May 2019. The Council assessed the claim on the income he received which included tax credits received in 2018 and 2019. The housing benefit claim ended in May 2019. In July the Council told Mr X he would need to get help with housing costs from Universal Credit.
5. In August 2019 HMRC told Mr X he had to repay a tax credit overpayment. The overpayment arose due to changes in Mr X’s income in 2019.
6. In October 2020 Mr X asked the Council to reassess his housing benefit because repaying the overpayment meant his income during 2019 was less so his housing benefit should be increased to take that decrease into account.
7. In response the Council explained it had correctly assessed his housing benefit based on the income he received at the time and it could not now be reviewed or increased.
8. I will not investigate this complaint because there is insufficient evidence of fault by the Council. I have checked the regulations and the Council has correctly explained that housing benefit is assessed on the tax credit income received, regardless of changes that may later occur. If Mr X had continued to receive housing benefit and tax credits then the reduced tax credit award (reduced to repay the overpayment) would have been the figure used by the Council to assess the on-going housing benefit claim. But, as Mr X does not currently receive housing benefit or tax credits this does not apply.
9. We do not assess housing benefit claims and we could not tell the Council to increase the award, especially as the claim ended three years ago and because the Council’s decision reflects the regulations.
10. Mr X might have been able to use review and appeal rights if he had asked for a housing benefit review in 2019 as soon as he was notified of the tax credit overpayment. But, he waited until October 2020 by which time all appeal rights had expired.

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Final decision

11. We will not investigate this complaint because there is insufficient evidence of fault by the Council and because we could not achieve the outcome Mr X wants.

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Investigator's decision on behalf of the Ombudsman