Summary: I have stopped investigating Mrs X’s complaint that the Council gave her incorrect benefits advice which meant she could not claim child tax credit. This is because the Council’s advice has not caused Mrs X an injustice and she can ask for reconsideration of her child tax credit claim.

The complaint

1. Mr Y complained on behalf of Mrs X. Mrs X complained the Council gave her incorrect benefits advice, which meant she could not claim for child tax credits for six months. She said the Council’s advice has cost her £1659.84 in lost benefits.

Back to top

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’. We provide a free service, but must use public money carefully. We may decide not to start or continue with an investigation if we believe:

• the fault has not caused injustice to the person who complained; and
• there is another body better placed to consider this complaint.

(Local Government Act 1974, section 24A(6), as amended)

Back to top

How I considered this complaint

3. I read the complaint information provided by Mr Y and discussed it with him. I referred to the Council’s complaint response.
4. I referred to the Universal Credit Regulations 2013 and Universal Credit Transitional Provisions 2014.
5. Mrs X and the Council had the opportunity to comment on my draft decision.

Back to top

What I found

6. Universal credit is a new benefit that is being introduced. It is paid to those aged over 18 and under state pension age. It is for those on low incomes or out of work, with savings under £16,000. Universal credit replaces the following benefits:
• child tax credit;
• housing benefit;
• income support;
• income-based job seekers allowance;
• income-related employment and support allowance; and
• working tax credit.
7. If a person is in a couple, and the older partner reaches state pension age, they can claim pension credit. Pension credit is non-taxable. The current rules change in May 2019, when both members of the couple need to be over pension credit age to claim.
8. The Department of Work and Pensions (DWP) makes decisions on pension credit. Her Majesty’s Revenue and Customs (HMRC) makes decisions on child tax credit.
9. If a person believes a decision about their benefits is wrong, they can ask the DWP or HMRC for mandatory reconsideration. This should happen within one month of receiving their decision notice. Decision-makers may accept a late application of up to thirteen months if there is a good reason for doing so. Any decision that has been reconsidered carries the right of appeal.

What happened

10. Mrs X lives with her husband and dependent grandchild. Mr X retired on 25 May 2018. The day before Mr X retired, Mrs X got advice from the Council about what benefits she should claim. Mrs X states the Council Officer she spoke to believed she should make a claim for universal credit but was unclear. Mrs X made a claim for housing benefit and council tax support.
11. The Council sent Mr X a letter on 19 June 2018. It advised Mr X to claim housing benefit through universal credit.
12. On 22 June 2018, Mrs X made a claim for universal credit. The Council telephoned Mrs X on 24 June 2019. In this conversation, Mrs X states the Council advised her to claim universal credit. The Council records show Mrs X stated she was going to claim universal credit for housing costs (i.e. rent).
13. Mrs X received a universal credit payment of £500 at the start of July 2018.
14. Mrs X got independent advice. She was told she and her husband should be claiming pension credit and child tax credits, as this is a more generous benefit than universal credit. Mrs X applied for these benefits.
15. On 6 August 2018, Mrs X closed her universal credit claim. She applied for child tax credit. On 2 October 2018, HMRC issued a decision notice to Mrs X. It said she was not eligible for child tax credit as she had made a claim for universal credit.
16. With support from the independent adviser, Mrs X complained to the Council that the advice it had given meant she could not claim child tax credit for six months. She stated the advice had cost her £1659.84 in benefits
17. The Council’s final response to Mrs X’s complaint accepts the advice it gave Mr X in June 2019 was wrong as housing benefit is not claimed through universal credit. The Council processed the claim for housing benefit and apologised.
18. The Council investigated Mrs X’s complaint that she was unable to claim child tax credit because she had made a claim for universal credit in the preceding six months. The Council made enquiries with DWP who explained the universal credit claim is closed when the customer requests it. Based on this, the Council would not give Mrs X financial compensation as she could have made a child tax credit claim.

My findings

19. The Universal Credit Regulations 2013 and the Universal Credit Transitional Provisions 2014 do not state that a person cannot make a child tax credit for six months following a universal credit claim. Therefore, even if the Council was at fault for giving Mrs X wrong advice, it has not caused the injustice claimed.
20. The decision to not award child tax credit is not made by the Council. Mrs X can request HMRC reconsider her claim for child tax credit. The outcome of this carries the right of appeal.
21. Given the above, I have decided to discontinue my investigation.

Back to top

Final decision

22. I have discontinued my investigation. This is because the Council’s advice has not caused Mrs X an injustice and Mrs X can ask the HMRC to reconsider her child tax credit claim.

Back to top

Investigator's decision on behalf of the Ombudsman