Summary: Mr X complains that after Council mistakenly terminated his housing benefit claim, it failed to provide a substantive remedy to acknowledge the impact and distress events had on him. We have concluded our investigation having made a finding of fault. The Council were at fault when it terminated Mr X’s benefit claim, and although it quickly reinstated Mr X’s claim and backdated his housing benefit, it did not provide a suitable remedy to acknowledge the distress and inconvenience imposed upon him. The Council have accepted our recommendations

The complaint

1. Mr X complains that after the Council mistakenly terminated his benefit claim, it failed to provide a substantive remedy. Mr X says he was put under financial pressure as a result of the Council’s actions. Mr X says the Council’s actions triggered his PTSD and made him suicidal. Mr X would like the Council to provide an improved remedy for the distress caused.

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The Ombudsman’s role and powers

2. 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)
3. 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 a council’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. I spoke with Mr X and considered the information he provided. I also considered the information the Council provided in response to my enquiries. I considered all comments from Mr X and the Council before making a final decision.

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What I found

Relevant guidance and legislation

Housing Benefit

6. Housing Benefit helps qualifying people on low incomes pay their rent. It is administered and paid by the council. The Housing Benefit Regulations 2006 (the Regulations) set out the rules councils must follow for calculating and paying Housing Benefit.
7. The government changed the housing benefit rules from April 2013. The new rules say that a council must reduce someone’s housing benefit if they live in a property which is too large for their needs. The rules say that one couple, or a single person, needs a one bedroom home.
8. There are some exceptions; for example, an extra bedroom is allowed if someone receives certain benefits and needs a carer to regularly stay overnight. If someone disagrees with a council’s decision to impose a reduction for the bedroom tax they can appeal to the tribunal. The law says people should appeal within one month of the date of the housing benefit decision they disagree with. The tribunal can decide to accept a late appeal up to 13 months after the decision. Because of this opportunity for appeal, we would not normally decide to investigate complaints about this type of decision

Discretionary Housing Payment

9. 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.
10. As per the Council’s website, discretionary housing payments are available to help claimants on a short term basis only — they are not payments of Housing Benefit. The Council says it can award discretionary housing payments to help a claimant, through a personal crisis, to stay in their home and to avoid poverty The Council says
11. The Council says how much and for how long it makes this award depends on a claimants personal circumstances and each case is looked at individually.

The Armed Forces Covenant

12. The Armed Forces Covenant promises that those who serve or have served in the British Military and their families will not be disadvantaged by its service.

What happened

13. I have included a summary of some of the key events in this complaint. This is not intended to be a comprehensive account of everything that took place.
14. Mr X was in receipt of housing benefit. In February 2022, Mr X informed the Council he was now permanently residing with his partner, and that his partner’s mother had become ill. The Council requested a change of circumstances form from Mr X to be completed by late March.
15. Before the deadline, Mr X informed the Council he was facing difficulties in completing the form. Mr X also informed the Council he suffered with PTSD. Mr X sent emails to a ‘do not reply’ Council mailbox.
16. On the deadline, the Council suspended Mr X’s claim as it had not received a completed form. Mr X wrote to the Council informing it that he had notified the Council of the challenges he was facing to complete the form. The Council advised Mr X to contact a department for assistance with completing the form.
17. Two weeks later, Mr X submitted the change of circumstances form. Mr X also requested assistance for help for his partners mother to also make a benefit claim.
18. At the end of April, the Council issued a letter to Mr X to inform him his claim had been terminated.
19. Mr X responded to the Council to query why it had terminated his claim. Mr X followed up again with the Council the following week to again query why it had terminated his claim.
20. In May 2022, Mr X submitted a complaint to the Council. A week later the Council responded to Mr X, informing him it had reinstated his claim.
21. Shortly after, the Council received a discretionary housing payment form from Mr X. Mr X’s doctor also sent the Council a letter informing it that he had a history of PTSD. Mr X’s doctor informed the Council that following a consultation, events concerning the termination of his benefit claim had caused a deterioration in his pre-existing psychological condition.
22. Shortly after, the Council wrote to Mr X requesting proof of loans and proof of rent. Mr X also provided proof of additional bills demonstrating an increase in costs.
23. Toward the end of May 2022, the Council sent Mr X a copy of its discretionary housing payment decision, advising a one of payment of approximately £1,000.
24. The following day, Mr X wrote to the Council to query why his housing benefit entitlement had been reduced. The Council wrote to Mr X explaining his housing benefit entitlement, housing benefit overpayment and discretionary housing payment.
25. Mr X wrote to the Council requesting it write off his Council Tax and housing benefit overpayment. The Council informed Mr X that its decision remained unchanged and gave him appeal advice. Mr X and the Council agreed to a repayment arrangement.

Analysis

26. After the Council sent Mr X a change of circumstances form, it suspended his benefit claim in March 2022 due to non-receipt. Although Mr X wrote to the Council to inform it he was having difficulty completing the form, Mr X sent this notification to an unmonitored ‘do not reply’ mailbox.
27. When the Council received notification from Mr X that he was having difficult completing the form, the Council signposted Mr X to where he could receive assistance with completing the form.
28. Mr X’s claim was however terminated at the end of April 2023 when it should not have been and here I have made a finding of fault. The Council has acknowledged that this was done so in error and has apologised to Mr X. Mr X’s claim was closed for 20 days before it was reinstated in May 2022.
29. After Mr X’s claim was reinstated, the Council backdated Mr X’s housing benefit to when his account had been suspended. Mr X’s housing benefit resumed as normal thereafter. I therefore acknowledge that the period of injustice applied to Mr X from the date his housing benefit claim was terminated in April 2022 to when it was reinstated in May 2022.
30. During this period, undue financial hardship was imposed upon Mr X. Mr X says he received food vouchers from Help 4 Heroes to assist him and had to borrow funds to support himself. After Mr X informed the Council of the financial hardship he was going through, the Council awarded a one of discretionary housing payment to him.
31. Whilst I acknowledge the Council acted quickly to reinstate Mr X’s housing benefit claim, backdate his housing benefit, and support Mr X through financial hardship by awarding a discretionary housing payment, I cannot see that it has remedied the inconvenience and distress imposed upon Mr X as a result of terminating his claim in error. As per Mr X’s doctor, his psychological condition had deteriorated as a result of events surrounding the termination of his benefit claim. Had the Council not terminated Mr X’s benefit claim in error, there would not have been a consequential impact on Mr X’s wellbeing.
32. In response to my enquiries, the Council says it has not made any amendments to its service as it recognises that on this occasion, this was a mistake that could not be prevented or avoided through service improvement. I agree with the Council’s comments and therefore do not consider it appropriate to recommend any service improvements to the Council’s service.

The Armed Forces Covenant

33. Mr X expressed concerns that the Council could be in breach of the Armed Forces Covenant. The aims of the covenants are to ensure the Council does not provide a lesser service to armed forces personnel and that it takes account of any special circumstances arising from their service in the forces.
34. I am satisfied therefore, given the evidence available to me, that there is no fault in the way the Council processed and handled Mr X’s housing benefit claim and complaint with regard to the Armed Forces Covenant. I do not find in this case that the Council were at fault in providing a lesser service to Mr X, or failed to acknowledge his personal circumstances, as it appropriately signposted Mr X to where he could receive assistance.

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Agreed action

35. The Council have agreed to:
1. Pay Mr X an amount of £250. This is to acknowledge the inconvenience and distress terminating his housing benefit claim imposed upon him whilst also recognizing Mr X’s personal circumstances.
36. The Council will complete action a within one month of the Ombudsman’s final decision. The Council should provide evidence to the Ombudsman that it has completed this action within the timeframe

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Final decision

37. I have concluded my investigation having made a finding of fault. The Council were at fault when it terminated Mr X’s benefit claim, and although it quickly reinstated Mr X’s claim, I found that it did not provide a suitable remedy to acknowledge the distress and inconvenience imposed upon him. The Council have accepted my recommendation.

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Investigator's decision on behalf of the Ombudsman