Folkestone & Hythe District Council (25 004 639)

Category : Benefits and tax > Housing benefit and council tax benefit

Decision : Closed after initial enquiries

Decision date : 16 Jul 2025

The Ombudsman's final decision:

Summary: We will not investigate this complaint about a housing benefit overpayment from 2021 and a recent error regarding a payment plan. This is because the complainant could have used her appeal rights and the Council has provided an appropriate response regarding the error.

The complaint

  1. The complainant, Ms X, complains about a housing benefit overpayment which she does not think she should have to repay. She complains she was told she had not set up a payment plan when she had. Ms X asked the Council to reduce the overpayment and pay compensation.

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The Ombudsman’s role and powers

  1. We investigate complaints about ‘maladministration’ and ‘service failure’. In this statement, I have used the word fault to refer to these. We provide a free service but must use public money carefully. We may decide not to start an investigation if we are satisfied with the actions an organisation has taken or proposes to take. (Local Government Act 1974, section 24A(7), as amended)
  2. The law says we cannot normally investigate a complaint when someone has a right of appeal, reference or review to a tribunal about the same matter. However, we may decide to investigate if we consider it would be unreasonable to expect the person to use this right. (Local Government Act 1974, section 26(6)(a), as amended)
  3. The Social Entitlement Chamber (also known as the Social Security Appeal Tribunal) is a tribunal that considers housing benefit appeals. (The Social Entitlement Chamber of the First Tier Tribunal)

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How I considered this complaint

  1. I considered information provided by Ms X and the Council. This includes the complaint correspondence and information about the overpayment. I also considered our Assessment Code.

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My assessment

  1. The Council notified Ms X of a housing benefit overpayment in 2021. The Council says it arose due to undeclared income. Ms X says it was caused by an official error. Ms X wants the Council to reduce or waive the overpayment.
  2. I will not investigate this complaint because Ms X could have used her appeal rights in 2021 if she did not think she should have to repay the overpayment. It is reasonable to expect her to appeal because the tribunal is the correct body to determine disputes about housing benefit overpayments. It is now too late for Ms X to appeal but that does not mean we can decide if the overpayment is repayable or should be reduced. The overpayment decision stands and there are no grounds on which we could ask the Council to waive or reduce it.
  3. Ms X recently set up a payment plan to repay the overpayment. In a subsequent call an officer told Ms X she had not made a payment plan. In response to the complaint, the Council apologised and explained that her account had not been updated to show she had made a payment plan. The Council said it would not reduce the overpayment or pay compensation.
  4. I will not investigate this part of the complaint because the Council has provided a satisfactory response by explaining what went wrong and apologising. This is not an issue that requires an investigation or compensation.

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Final decision

  1. We will not investigate this complaint because Ms X could have used her appeal rights and because the Council has provided a satisfactory response.

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Investigator's decision on behalf of the Ombudsman

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