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Birmingham City Council (25 022 969)

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

Decision : Upheld

Decision date : 02 Jul 2026

The Ombudsman's final decision:

Summary: We will not investigate this complaint about the Council failing to notify Ms X when the housing benefit claim was cancelled and provided Ms X with misinformation. This is because the Council has provided a suitable remedy to recognise the injustice caused by the delays.

The complaint

  1. Ms X complains the Council failed to notify her when her housing benefit claim was cancelled and provided her with misinformation. She said because of this she is in rent arrears and has been caused significant distress.
  2. Ms X wants the Council to apologise, provide compensation and make service improvements.

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The Ombudsman’s role and powers

  1. We investigate 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 or continue an investigation if we decide further investigation would not lead to a different outcome. (Local Government Act 1974, section 24A(6), as amended, section 34(B))

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How I considered this complaint

  1. I considered information provided by the complainant and the Council.
  2. I considered the Ombudsman’s Assessment Code.

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My assessment

  1. Ms X received housing benefit. She reported a change in her circumstances in September 2025 which led to a re-assessment. The Council told Ms X she had to pay a weekly service charge of £355.15. Ms X queried this and said it was unaffordable. The Council said it would update her but said it did not yet have an exact figure.
  2. In October 2025, the Council told Ms X she was responsible for paying her rent. In November 2025, it said her housing benefit claim had been cancelled because she had moved address. Ms X complained and said she had continued to live at the same address.
  3. In its final response, the Council said Ms X was awarded £937.63 in housing benefit in early September 2025, but it later suspended the claim. Following a reassessment in November 2025, her entitlement reduced from £328.17 to £258.36, leaving Ms X to pay £96.79 a week. The Council said it reinstated the claim from 15 September 2025 and added £2,841.96 to her rent account.
  4. If we investigate this complaint, it is likely we would find the Council at fault as Ms X was given conflicting information around the cost of the service charged as noted in paragraph six. Whilst it is Ms X’s responsibility to pay rent, the conflicting information did make matters confusing and caused Ms X significant distress.
  5. The Council has rectified the housing benefit issues, and the payments have been backdated. To remedy the injustice caused to Ms X by the Council providing her with misinformation, we asked it to apologise for the miscommunication, provide Ms X with a payment of £150 in recognition of the distress caused to her. We also asked the Council to issue reminders to relevant staff regarding issuing clear communication with customers. The Council has agreed to do so within 4 weeks of the final decision.

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Final decision

  1. We will not investigate Ms X’s complaint because the Council has provided a suitable remedy which is in line with the Ombudsman’s guidance.

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Investigator's decision on behalf of the Ombudsman

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