Summary: Ms B complained that the Council delayed excessively in deciding her review about a housing benefit overpayment and continued to recover the debt while the review was pending. We found fault in the actions of the Council which caused Ms B distress, and financial hardship. The Council has agreed to apologise to Ms B, make a symbolic payment to her and provide an explanation for the delay.

The complaint

1. Ms B complained that the London Borough of Hackney (the Council) delayed for nearly two years in deciding a review of a housing benefit overpayment in her favour. This resulted in the Council writing off arrears of around £6000. She also complained that the Council continued to recover the overpayments during the period of delay causing her financial hardship and that it failed to respond to her request for information about the decision causing her additional distress.

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The Ombudsman’s role and powers

2. 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)
3. 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)

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How I considered this complaint

4. I considered evidence provided by the Council and Ms B as well as relevant law, policy and guidance.
5. The Council and Ms B had an opportunity to comment on my draft decision. I considered any comments before making a final decision.

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What I found

6. The Council notified Ms B in January 2023 that it had overpaid her housing benefit amounting, initially to around £3,300 and that it was going to recover it from her.
7. In early February 2023 Ms B appealed against the decision on the grounds that the debt was irrecoverable as it was due to errors by the Council in calculating her income. She also asked for an explanation as to how the Council had calculated her income.
8. Ms B made multiple requests for information and says that the Council delayed in responding and then did not provide the requested information or simply repeated the previous calculations. It also sent further decisions increasing the amount owed to around £6,000. Throughout this period the Council was recovering the debt from Ms B.
9. On 28 November 2024 after Ms B had complained to her local councillor, the Council decided the review in her favour. On 12 January 2025 it confirmed it would be writing off the entire debt. It also refunded the money it had recovered from her (over £1600). Ms B complained to us in September 2025 saying that the Council has never apologised directly to her or explained why it took so long to deal with the matter.
10. In November 2025 we asked the Council to agree to make a symbolic payment of £200 to Ms B to recognise the injustice she has been caused by the delay. The Council did not respond before the complaint was forwarded to the Investigation Team. The Council agreed in December 2025 to pay £200.

Findings

11. The Council delayed excessively in deciding Ms B’s review and writing off the debt. She had to chase up the Council for information and explanation over nearly two years, with no opportunity to pursue an independent appeal. This was fault which caused Ms B significant distress.
12. The Council also continued to recover the overpayment from Ms B even though she had disputed it. We consider a council should suspend recover of debts while an appeal is ongoing. This was fault which caused Ms B financial hardship.
13. The Council failed to apologise to Ms B directly or provide any explanation for the excessive delay. This was fault which exacerbated the injustice Ms B experienced. I welcome the Council’s agreement to make a symbolic payment of £200 to Ms B.

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Action

14. I recommend the Council, within one month of the date of my final decision:
• apologises to Ms B;
• makes a symbolic payment of £200; and
• provides her with the reasons for the delays in dealing with her review.
15. The Council should provide us with evidence it has complied with the above actions.

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Decision

16. I find fault causing injustice. The Council has agreed actions to remedy injustice.

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Investigator's decision on behalf of the Ombudsman