London Borough of Croydon (22 014 567)
Category : Benefits and tax > Housing benefit and council tax benefit
Decision : Closed after initial enquiries
Decision date : 27 Feb 2023
The Ombudsman's final decision:
Summary: We will not investigate this complaint about the Council’s decision not to award a Discretionary Housing Payment. This is because there is insufficient evidence of fault by the Council.
The complaint
- The complainant, whom I refer to as Mr X, disagrees with the Council’s decision not to award a Discretionary Housing Payment (DHP) to help him pay an increase in his rent. Mr X wants the Council to award a DHP.
The Ombudsman’s role and powers
- 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. (Local Government Act 1974, section 24A(6))
- We consider whether there was fault in the way an organisation made its decision. If there was no fault in the decision making, we cannot question the outcome. (Local Government Act 1974, section 34(3), as amended)
How I considered this complaint
- I considered information provided by Mr X and the Council. This includes Mr X’s DHP application, bank statements, medical evidence and the Council’s decision. I also considered our Assessment Code and comments Mr X made in reply to a draft of this decision.
My assessment
- DHPs are discretionary payments which councils can award to help people pay the difference between their housing benefit (or Universal Credit) and their rent. There is no right to a DHP and councils have a limited budget from which to pay DHPs. The Council’s policy says it will work with people to help them pay their rent and this may include budgeting advice to help maximise their income.
- Mr X applied for a DHP of £60 a month to cover a £60 increase in his rent. From November 2022 he received £875 a month in benefit for his rent and his rent had increased to £960. Mr X submitted bank statements and medical evidence to support his application.
- The Council assessed all the information but decided not to award a DHP because Mr X has enough money to pay the rent shortfall. The Council assessed his income and expenditure, based on budget sheets and bank statements, and found that after the rent increase he has £344 excess income. The Council noted Mr X pays £92 a month to charities, a union and a lottery; the Council suggested this spending could be changed to help pay the rent shortfall of the £85. The Council explained it has a limited budget and must focus DHP support on people who cannot pay their rent.
- I will not investigate this complaint because there is insufficient evidence of fault by the Council. The Council’s decision not to award a DHP is based on Mr X’s finances and the DHP policy. It is for Mr X to decide how he wants to spend his money but, as an aspect of the policy is that the Council will provide budgeting advice, then it is not fault for the Council to decide Mr X can afford to pay the rent, especially if he makes changes to his expenditure.
- Mr X says he finds it hard to complete budget sheets but, due to this difficulty, the Council analysed his bank statements rather then relying solely on the budget form he completed. Mr X also says the council tax is due to rise by 15% in April and he does not know if he will continue to get full council tax support. The Council made a decision about the DHP application in late 2022 and is not due to make a decision about council tax for 2023/24 until 1 March 2023. When it made the DHP decision in 2022 the Council could not take into account a council tax increase that had not yet been agreed. If Mr X thinks his finances have been negatively affected by a council tax increase from April 2023 then he could make a new DHP application. It would be for the Council to assess any new DHP application and decide whether to make an award.
- We are not an appeal body and it is not my role to decide if Mr X is eligible for a DHP. I can only consider if there was fault in the way the Council made the decision and I see no suggestion of fault.
Final decision
- We will not investigate this complaint because there is insufficient evidence of fault by the Council.
Investigator's decision on behalf of the Ombudsman