Summary: Ms X complained the Council pursued council tax payments despite her not being liable. The Council was at fault which caused Ms X avoidable distress.

The complaint

1. Ms X complained the Council placed her in accommodation between 2015 and 2017 where she was charged council tax even though her immigration status prevented her from receiving benefits or working. The Council pursued Ms X for the outstanding council tax debt.

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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(i), as amended)

What I have and have not investigated

4. Ms X’s complaint relates to a historic debt. However, I am satisfied that Ms X thought the matter had been resolved and was only aware that it was not earlier this year. Therefore, I have investigated Ms X’s complaint to determine whether any fault occurred between 2015-2017 when the Council placed Ms X, a care-leaver in accommodation that made her liable to pay council tax.

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How I considered this complaint

5. I considered Ms X’s complaint and supporting information.
6. I also considered the Council’s response to Ms X and to my enquiries.
7. Ms X and the Council had an opportunity to comment on my draft decision. I considered any comments received before making a final decision.

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What I found

Council tax exemption

8. The law states that a non British Citizen who is not allowed under immigration rules, either to work in the UK or claim benefit is exempt from paying council tax.
9. The Council policy states that if a person has been in care, they will become a ‘care leaver’ once they turn 18. The Council will provide council tax support for care leavers living in the area. This could be up to 100% reduction on their council tax bills.

What happened

10. Ms X left care in April 2015. At this time, Ms X did not have British citizenship. She was therefore classified as having ‘no recourse to public funds (NRPF) as she was unable to claim income support or other benefits.
11. The Council placed Ms X in supported-living accommodation and the placement provider put Ms X’s name at the address as liable for council tax payments. Despite the Council being notified of Ms X’s immigration status and being not liable for council tax, the Council pursued the debt.
12. Between June 2015 and March 2017, Ms X lived in two properties arranged by the Council and was charged council tax.
13. In March 2017, the Council confirmed that although Ms X was unable to claim benefits, she could work as she was turning 21 in July.
14. Between 2015 and 2019, Ms X went through various processes to achieve citizenship. In May 2019, the Home Office granted Ms X Settled Status (an Indefinite Leave to Remain) and she was able to claim benefits.
15. As of January 2021, Ms X had accrued an £841.50 council tax debt. This covered the period June 2015-July 2016 and Dec 2016-March 2017. The Council confirmed that Ms X was not liable for council tax during these periods as she was a young person leaving care and had NRPF due to her immigration status.
16. The Council continued to take enforcement action to pursue the debt.

My findings

17. Ms X was not liable to pay council tax for the period of time she was under 21, a care leaver and NRPF.
18. The Council was at fault for continuing to charge Ms X council tax despite being informed in 2015 that she was not liable. It was also at fault for taking enforcement action to pursue the debt after it accepted she was not liable for council tax for the period the debt was accrued.
19. The Council’s mistake caused Ms X the distress of being pursued by Council enforcement agents and bailiffs. Ms X said this impacted on her mental health.
20. In response to my enquiries, the Council accepted it had been at been wrong to place Ms X in accommodation that required her to pay council tax. It agreed to write off the £841.50 debt and offered a payment of £300 in recognition of the distress it had caused Ms X.
21. I am satisfied that this offer, and an apology is proportionate.

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Agreed action

22. Within 4 weeks of my decision, the Council has agreed to:
1. Apologise to Ms X for mistakenly pursuing council tax debt.
2. Write off the £841.50 council tax debt that was incorrectly accrued.
3. Pay Ms X £300 to recognize the avoidable distress caused by the Council’s mistake.
23. The Council should provide us with evidence it has complied with the above actions.

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Final decision

24. I have completed my investigation. I have found fault with the Council for incorrectly pursuing Ms X for council tax even though she was not liable. The accumulation of debt and the subsequent enforcement caused her avoidable distress.

Investigator’s decision on behalf of the Ombudsman

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Investigator's decision on behalf of the Ombudsman