Summary: Miss X complained the Council took too long to assess her housing benefit claim following a change in her circumstances. She stated the Council did not reply to her requests for updates on her claim and that she accrued rent arrears because of the delay. We found fault by the Council because it took too long to decide Miss X’s claim. However, we consider the Council has remedied the injustice caused to Miss X.

The complaint

1. The complainant, who I shall call Miss X, complained the Council took too long to assess her housing benefit claim following a change in her circumstances. She stated the Council did not respond to her requests for updates on her claim.
2. Miss X states the delay means she has accrued significant rent arrears, and this is causing her financial hardship and impacting her mental health.

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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 significant injustice, or that could cause injustice to others in the future 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:

• discussed the complaint with Miss X and considered documents she provided;
• made enquiries of the Council and considered its response and documents its provided; and
• set out my thoughts on Miss X’s complaint in a draft decision statement and invited Miss X and the Council to comment.

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What I found

6. Housing Benefit helps eligible people on low incomes pay their rent and the Council manages and pays this. The Housing Benefit Regulations 2006 (the Regulations) set out the rules councils must follow for calculating and paying Housing Benefit. Usually the Council pays the tenant housing benefit; it is responsible for paying the rent to the person’s landlord.
7. If a council pays too much housing benefit to someone, it will usually ask them to repay it. The law says the council can recover overpayment unless it was caused by an official error and it was not reasonable to expect the person to realise they were receiving too much benefit.

Discretionary Housing Payments

8. A council may award discretionary housing payments (DHP) when someone needs help with housing costs and is claiming Housing Benefit or Universal Credit which includes housing costs towards rent. (Discretionary Housing Payments guidance manual February 2021, section 1.7, as amended)

Key events

9. Miss X lives with her son in temporary accommodation provided by the Council.
10. In July 2022 Miss X made a housing benefit claim to help her pay the rent for her temporary accommodation. The claim form Miss X completed said applicants must tell the Council if their circumstances change.
11. In August the Council decided Miss X’s claim. It said it would pay her Housing Benefit of £98.27 per week towards her rent.
12. On 6 April 2023 the Council received a notice from His Majesty’s Revenue and Customs (HMRC) saying that Miss X’s employment had changed.
13. The Council suspended Miss X’s Housing Benefit claim the same day and sent her an email asking if there had been a change in her circumstances.
14. On 25 April Miss X replied. She told the Council she ended her previous employment on 25 September 2022. Miss X said her new employment started on 10 October 2022. She gave the Council documents supporting her response.
15. Miss X called the Council on three occasions between 2 May and 16 May asking for an update on her claim. The Council told Miss X that it tries to decide claims within 30 days. It told Miss X to call again if her claim was still outstanding after 30 days.
16. On 31 May Miss X called the Council again as it had not decided her claim. In response the Council escalated her case to Team Leader.
17. Miss X called the Council again on 5 June. It told Miss X to allow more time for her claim to be considered. She called the Council on three more occasions in June chasing up a decision on her claim.
18. On 20 June the Council completed its consideration of Miss X’s claim. It said that as her income had increased her housing benefit entitlement going forward would be £39.52 per week.
19. It also told Miss X it overpaid her housing benefit for the period 17 October 2022 to 9 April 2023. The total overpayment was £1586.81. It told Miss X that it would recover the overpayment by taking away £12.75 from her weekly housing benefit entitlement.
20. Following the Council’s decision on her housing benefit claim Miss X applied for a Discretionary Housing Payment (DHP). It at first said it would pay her £10 per a week for the period 5 June 2023 to 3 September 2023. Miss X challenged the Council’s decision and in August 2023 it decided to award her a single DHP of £1300. It also reduced her repayments towards her benefit overpayment to £5 per week.
21. Miss X also made a complaint to the Council about its handling of her housing benefit claim. The Council’s reply recognised that it took longer than its target of 30 days to decide her claim and it apologised for this.
22. Unhappy with the Council’s response Miss X approached the Ombudsman. She said the Council’s actions had resulted in her being in debt and accruing rent arrears, which would prevent her moving from her temporary accommodation.
23. In response to our enquiries the Council said it had paid Miss X all the housing benefit she is entitled to while her claim was suspended. It also said that it was not aware the delay in assessing her claim has affected her housing situation.
24. Following receipt of my draft decision the Council confirmed that, providing she makes the agreed payments towards her rent for a minimum of 6 months, Miss X’s chances of moving to permanent accommodation will not be jeopardised because of the rent arrears she accumulated while her claim was being decided.

Finding

25. The Council tries to decide housing benefit claims within 30 days. The Council took an extra four weeks to decide Miss X’s claim. This is delay by the Council which caused Miss X frustration and uncertainty. The Council apologised to Miss X and I consider this sufficiently addresses the injustice caused to her.
26. Evidence provided by the Council shows it responded to Miss X requests for updates on her claim. It also shows officers escalated Miss X’s claim after the 30 day target was exceeded.
27. Miss X states she accrued rent arrears during the eight weeks her claim was suspended. Since deciding her claim the Council has paid Miss X all the housing benefit she was entitled to while her claim was suspended.
28. I recognise that while Miss X’s claim was suspended, she did not know her entitlement to housing benefit would be reduced. I understand this has contributed to the rent arrears she has accrued. The Council has made Miss X a DHP of £1300. This is a sum which is enough to cover the difference between her previous and current entitlement to housing benefit for the eight weeks the Council took decide her claim. I consider the DHP and payment of the housing benefit she was entitled to while her claim was suspended means Miss X has been given funds to clear her rent arrears.
29. I am aware that Miss X is repaying a housing benefit overpayment of £1586.61. I do not consider the overpayment occurred because of fault by the Council. It arose because Miss X did not tell the Council about the change in her circumstances, and this resulted in her being paid more housing benefit than she was entitled to.
30. Miss X says that falling into rent arrears has jeopardised her chance of being able to move from temporary accommodation to permanent accommodation. The Council has confirmed that Miss X’s chances of moving to permanent accommodation will not be jeopardised providing she makes the required rent payments for a minimum of six months.

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Final decision

31. I found fault by the Council. I have completed my investigation because the Council has taken suitable action to remedy the injustice caused to Miss X.

Investigator’s final decision on behalf of the Ombudsman

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Investigator's decision on behalf of the Ombudsman