Summary: Mr D complained the Council delayed processing his Housing Benefit application and telling him he needed to apply to the DWP for support with housing costs. We found the Council at fault for failing to process Mr D’s application within its targeted timescales and it missed opportunities to inform him to instead apply for housing costs with the DWP. The Council agreed to apologise and make payment to Mr D to acknowledge the distress and loss of some of the housing support this caused.

The complaint

1. The complainant, whom I shall refer to as Mr D, complained about the Council’s handling of his application for Housing Benefit. He said it had:
• delayed processing his Housing Benefit claim and had failed to tell him he needed to apply for Universal Credit through the Department for Work and Pensions (DWP); and
• failed to provide clear information about Housing Benefit claims on the Council’s website.
2. As a result, Mr D said he experienced distress and had a loss of income.

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The Ombudsman’s role and powers

3. 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’. If there has been fault which has caused an injustice, we may suggest a remedy. (Local Government Act 1974, sections 26(1) and 26A(1), as amended)
4. If we are satisfied with an organisation’s actions or proposed actions, we can complete our investigation and issue a decision statement. (Local Government Act 1974, section 30(1B) and 34H(i), as amended)

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How I considered this complaint

5. As part of my investigation, I have:
• considered Mr D’s complaint and the Council’s responses;
• discussed the complaint with Mr D; and
• considered the information the Council provided in response to my enquiries.
6. Mr D and the Council had an opportunity to comment on my draft decision. I considered any comments received before making a final decision.

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What I found

Housing benefit and Universal credit

7. Housing benefit is administered by local authorities to help people on low incomes with their rent payments. It is a means tested benefit, taking both capital and income into account. Claimants are responsible for ensuring they update the council with any changes in their circumstances. Failure to do so can affect the housing benefit paid.
8. Universal credit was introduced in 2013 as a replacement for certain means-tested benefits and is administered by the Department of Work and Pensions (DWP). Universal credit includes an element for the claimant’s rent and replaces housing benefit.
9. Except for certain limited circumstances, those below state pension age who make a new claim for benefits should apply to the DWP.
10. The Council’s website says people on low income who live in the Council’s areas can get help with Housing Benefit from the Council if:
• they live in sheltered, temporary or emergency housing; or
• have reached pensionable age; or
• are currently receiving Housing Benefit and has changed address.
11. Its website also says people who pay rent to private landlords or housing associations should apply to the DWP for Universal Credit to help with rent.
12. The Council aims to process Housing Benefit applications within a target of 16 working days.

Discretionary Housing Payments

13. The discretionary housing payments guidance manual issued by the Department for Work and Pensions says councils may award a discretionary housing payment (DHP) where a council considers a claimant needs further financial support. This is towards housing costs. Eligibility depends on the applicant’s entitlement to either housing benefit or the housing cost element of universal credit. The scheme is purely discretionary, a claimant does not have a statutory right to a payment.

What happened

14. Mr D lives with his wife and children. They have lived in privately rented accommodations and had previously applied for Housing Benefit.
15. In October 2021, Mr D and his family moved into a privately rented property within the Council’s area and applied for Housing Benefit through the Council’s website. Mr D’s application shows he worked and claiming Child Benefit, Child Tax Credits, and Working Tax Credits. His application said he was paying rent to a private landlord.
16. Two weeks later, the Council asked Mr D for more information to support his Housing Benefit claim.
17. Mr D provided some of the requested information and asked the Council if more information was needed.
18. The Council did not acknowledge Mr D’s information or respond to his question whether more information was needed.
19. Mr D said he called the Council several times for an update on his application. When he spoke to a Housing Benefit Officer, he was told it could take up to six weeks for his application to be processed. He also emailed the Council in late 2021 for an update but did not receive a response.
20. In early 2022 Mr D complained to the Council about the time it had taken to process his application.
21. In response the Council told Mr D he was not entitled to apply for Housing Benefit through the Council, and he should instead apply for support with housing costs through the DWP as part of a Universal Credit claim.
22. Mr D asked the Council to escalate his complaint. He said he had lost 3 months of support with rent because it had:
• delayed processing his housing benefit claim and had failed to tell him he needed to apply for Universal Credit through the Department for Work and Pensions (DWP); and
• failed to provide clear information about Housing Benefit claims on the Council’s website.
23. In the Council’s final complaint response, it told Mr D it accepted there had been a delay, due to workloads within its team, in processing his Housing Benefit application and advising him he had to make his claim to the DWP. However, it found it was Mr D’s responsibility to make his application correctly to the DWP in the first place. It explained the council could not provide any further assistance through Housing Benefit, but he could make a claim for a Discretionary Housing Payment which may provide some assistance.
24. Mr D remains unhappy with the Council’s response. He asked the Ombudsman to consider his complaint.
25. In response to my enquiries, the Council has shared its Housing Benefit strategy and performance. This shows it is processing Housing Benefit claims within its targeted 16 working days.

Analysis and findings

26. It is clear Mr D and his family was not entitled to Housing Benefit when he applied to the Council in October 2021.
27. Mr D had previously applied for Housing Benefit directly to councils and believed this was still the correct process. However, despite of his belief, it was his responsibility to ensure he correctly completed his application and applied to the correct body for support with his rent.
28. However, as councils used to manage all Housing Benefit claims, and continues to manage such claims in limited circumstances, I would expect the Council’s website, forms, and responses to request to clearly alert applicants to apply to the DWP for housing costs.

Council website and Housing Benefit application form

29. I have considered the information available on the Council’s website. I am satisfied provides some information about the limited circumstances for those who can apply to the Council for Housing Benefit, and for people living in privately rented accommodations to apply to the DWP for support with housing costs.
30. The Council’s Housing Benefit application form did not warn or alert applicants it is only a limited group of eligible applicants who should use it. It also refers to refers to private tenants and private landlords as some could still be eligible to apply for housing benefit. However, as the form is accessed through the Council’s website, I would expect Mr D to have read the available guidance on its website before starting his claim.
31. I have therefore not found the Council at fault for failing to display information about Housing Benefit applications clearly.

Delays in processing Mr D’s Housing Benefit application

32. The Council agreed it caused a delay in processing Mr D’s Housing Benefit application due to high workload within its team. Once the Council had received Mr D’s application, it had a target to process this within 16 working days.
33. I accept there may be circumstances where the Council may not be able to meet its timescales, which could include delays in receiving information from applicants and incomplete applications.
34. However, I am not satisfied delays due to workload issues within its department is an appropriate reason for not meeting its timescales and informing Mr D about its decision. If the Council had met its own timescales, Mr D’s Housing Benefit claim would have been refused in the middle of November 2021.
35. The Council did not tell Mr D he should apply for housing costs to the DWP until January 2022, despite several opportunities to do so. These were when:
• it asked Mr D to provide further information in early November 2021, and when Mr D provided the requested a week later;
• Mr D spoke to a Council Officer in late November 2021; and
• Mr D emailed the Council in early December 2021 regarding the time it had taken to process his application.
36. I therefore found the Council failed to tell Mr D he should make a claim for Universal Credit to the DWP to receive help with housing costs. It should have done so at least in the end of November 2021 when he spoke with the Council, which was also two weeks after its target timescale for having processed his application.
37. I am satisfied Mr D experienced some limited distress due to the delay the Council caused. He also had a loss of income for help with his rental costs from late November 2021 until January 2022 when the Council told Mr D, he was not eligible for Housing Benefit. Any period after this, he was aware of his right to apply to the DWP for housing cost support.

Discretionary Housing Payment

38. I understand Mr D has not applied for a Discretionary Housing Payment as the Council suggested in its complaint response. Regardless of this, on balance, it appears to me such claim would have been refused. This is because a claim can only be considered for the period in which the applicant was in receipt of Housing Benefit or Universal Credit housing costs. As Mr D was not receiving either of these at the time, he would not have been eligible for a payment.

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Agreed action

39. To remedy the injustice the Council caused to Mr D, the Council should, within one month of the final decision:
1. apologise to Mr D and pay £100 to acknowledge the distress its delays to process his Housing Benefit application caused him, including the time and trouble he had to bring his concerns to the Council’s attention; and
2. pay Mr D the amount he would have received in help with his housing costs between the end of November 2021 until the Council told him he had to apply for such support from the DWP in January 2022.
40. Within three months of the final decision the Council should also:
1. review how it can better screen Housing Benefit applications to inform ineligible application to apply to the DWP for support with housing costs. This is to limit unnecessary delays in circumstances where the Council cannot meet its targeted timescales for processing Housing Benefit applications.
41. The Council should provide us with evidence it has complied with the above actions.

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Final decision

42. I have completed my investigation with a finding of fault which caused an injustice.

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Investigator's decision on behalf of the Ombudsman