Summary: Mr X complained the Council delayed assessing his housing benefit application. He said this has had a negative impact on him financially and has taken his time and trouble for almost a year trying to resolve. We have found fault in the Councils actions for delays in completing the assessments and for incorrect information provided. The Council has agreed to write to Mr X to issue an apology, pay him a symbolic payment and complete service improvements.

The complaint

1. Mr X complained the Council delayed assessing his housing benefit application.
2. He said this has had a negative impact on him financially and has taken his time and trouble for almost a year trying to resolve.

Back to top

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(1), as amended)

Back to top

How I considered this complaint

5. I considered evidence provided by Mr X and the Council as well as relevant law, policy and guidance.
6. Mr X and the Council were invited to comment on my draft decision. I have considered any comments before making a final decision.

Back to top

What I found

7. The Council manages and pays Housing Benefit which helps eligible people on low incomes pay their rent. Regulations set out the rules councils must follow for calculating and paying Housing Benefit. Usually, the Council pays the tenant housing benefit but it can also pay Housing Benefit direct to a landlord in some circumstances.
8. If someone disagrees with a housing benefit decision they can ask the council for a review. If they have a review, and are not happy with the decision, they can then appeal to the tribunal. The law says people should appeal within one month of the date of the decision they think is wrong. Because the person can appeal, we would normally decide not to investigate complaints about these decisions.
9. If a council pays too much housing benefit to someone, it will usually ask them to repay it. The law says the council can get this money back unless it was caused by the council’s mistakes and it was not reasonable to expect the person to realise they were receiving too much benefit.
10. If someone disagrees with a decision about an overpayment they can appeal to the tribunal. The law says people should appeal within one month of the date of the decision they think is wrong.

Discretionary Housing Payment

11. A council can 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 May 2022, section 2.3)
12. The council must tell the applicant about its decision and explain its reasons if the decision is not to make a payment. The guidance says councils should make a decision as soon as it can and avoid unnecessary delay. The decision should tell the applicant how to ask for a review. (Discretionary Housing Payments guidance manual May 2022, section 4.30 to 4.32)

What happened

13. Mr X received housing benefit. In December 2023 the Council told him, on review of his P60, it had made over payments between April and July 2022 totalling £5,153.13.
14. Mr X made a claim for Universal Credit in February 2024 and provided a statement from Universal Credit to the Council in March 2024. Mr X also said he was unhappy with the delay in the way the Council had handled his housing benefit claim.
15. The Council wrote to Mr X in late April 2024 and said he had not provided details of his self-employed income and confirmed in order to assess his income it would require this. The Council also told Mr X how he could appeal if he was unhappy with a decision it had made.
16. The Council wrote to Mr X in July 2024 and said he may be entitled to housing benefit.
17. Mr X appealed a decision the Council had made in September 2024. The Council told Mr X in late October 2024 it still needed evidence of his income and asked for a copy of Mr X’s P60. The Council also asked again for the information it needed in late November 2024.
18. The Council re-assessed Mr X’s housing benefit in January 2025 relating to a period between July and February 2024 which resulted in an underpayment of £611.90 in Mr X’s favour.
19. Mr X applied for a Discretionary Housing Payment (DHP) which was declined by the Council in January 2025. Mr X appealed this decision.
20. Mr X appealed the Council’s decision the underpayment of £611.90 would be used to reduce the overpayment it had made to Mr X.
21. The Council wrote to Mr X in February 2025 to explain why the recovery of the overpayment was reasonable and confirmed the outstanding amount it would recover. The Council quoted Regulation 102 of the Department of Work and Pension Guidance in its explanation of the decision it made.
22. The Council again recalculated Mr X’s Housing benefit in February 2025 in relation to a period of April- July 2023. This reduced Mr X’s overpayment by £1,093.10.
23. The Council wrote to Mr X in mid-February 2025 to say it had reconsidered its decision about Mr X’s application for a DHP but confirmed its decision remained the same. The Council said DHP’s cannot be used to pay a shortfall or the overpayment recovery when an overpayment has been made.
24. The Council wrote to Mr X in July 2025 and confirmed it had reversed its decision not to award a 14-day transitional provision on his Housing Benefit when he claimed Universal Credit.
25. Mr X raised a complaint in mid-July 2025 in relation to Housing Benefit payments between March 2024 and January 2025. The Council spoke to Mr X about his complaint and believed it had resolved it the following day. Mr X told the Council it had not resolved his complaint the same day.
26. The Council responded to Mr X’s complaint in late July and apologised for the delays in reassessing his claims. Mr X sent a stage two complaint to the Council the same day and said the Council had not explained the delay which he said led to possession proceedings from his landlord. Mr X also said he was unhappy he was told he could apply for Housing Benefit incorrectly and that he had not received responses to all correspondence.
27. The Council responded to Mr X’s complaint in late-August 2025 and said it had spoken to Mr X and he accepted the Housing Benefit assessments were now correct and had agreed to pay an amount to repay the overpayment. The Council accepted it had made errors in the calculations which had been amended. It also said delays were due to the complexity of the matter and acknowledged it gave incorrect information about making a Housing Benefit application. The Council also said responses were delayed due to workloads.

Analysis

28. The Council asked Mr X for information to allow it to complete a reassessment of his housing benefit claim several times up until November 2024. The Council clearly explained to Mr X what information it needed to complete the reassessment. Once received the Council completed the reassessment in January 2025.
29. The Council then completed several reassessment’s which resulted in the Council identifying an underpayment due to Mr X. Mr X complained the Council deducted the underpayment amount from the overpayment balance rather than release it to his landlord. The Council has explained why it made that decision. I have not found fault in how the Council made this decision.
30. In its response to Mr X’s complaint the Council has said errors were made in its calculations. This is fault and has caused Mr X distress and frustration. The Council has also accepted there were delays in assessing the matter due to its complexity and that responses were delayed due to workloads. This is fault and would have caused Mr X distress and frustration.
31. The Council has also accepted Mr X was given incorrect information about claiming Housing Benefit alongside Universal Credit and that legislation was not always quoted in its letters advising of decisions made. This is fault and would have caused Mr X frustration and distress.
32. I understand Mr X now agrees with the Council’s calculations.

Back to top

Action

33. Within four weeks of a final decision, the Council should:

• Write to Mr X to apologise for the distress and frustration caused by the faults identified. We publish guidance on remedies which sets out our expectations for how organisations should apologise effectively to remedy injustice. The organisation should consider this guidance in making the apology I have recommended in my findings.
• Pay Mr X £300 to recognise the distress and frustration caused to him by the faults identified.
• In writing, remind officers of the importance of including legislation in decision letters where relevant and of reviewing and responding to matters in a timely manner.

34. The Council should provide us with evidence it has complied with the above actions.

Back to top

Decision

35. I find fault causing injustice.

Investigator’s decision on behalf of the Ombudsman

Back to top

Investigator's decision on behalf of the Ombudsman