Summary: Ms D complained the Council failed to provide debt relief advice and did not action her Personalised Housing Plan. I have found evidence of fault by the Council because it delayed reviewing her case and failed to provide tailored debt advice. Ms D was caused unnecessary time and trouble and avoidable delays. The Council has agreed to pay Ms D redress. The Council has already made service improvements because of this case.

The complaint

1. The complainant (whom I refer to as Ms D) says the Council failed to provide debt relief support and failed to action her Personalised Housing Plan (PHP). She also questioned why the Council had found her not eligible for debt relief assistance.

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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 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)

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What I have and have not investigated

4. I have considered events from when Ms D approached the Council for assistance in January 2023 through to August 2024 when the Council’s final stage complaint response was issued.

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How I considered this complaint

5. I considered evidence provided by Ms D and the Council as well as relevant law, policy and guidance.
6. I shared my draft decision with both parties and considered their comments.

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What I found

What happened

7. On 5 January 2023 Ms D approached the Council for assistance with housing. She was in a private rental property and could not afford the rent. Ms D subsequently sent additional information to the Council and chased it up on 31 January for an update. The Council told her an Officer would be in touch within three days. On 8 February Ms D attended the Council offices because no-one had called her. She completed an income and expenditure form and was told an Officer would call her. On 19 February Ms D chased up the Council. A Housing Officer called her on 13 March and left a message. On 14 March Ms D spoke to a Housing Officer and detailed her situation. That information was noted and put into a PHP on 3 May. Ms D had medical conditions and personal debts but no rent arrears. She was also employed and wanted assistance to find accommodation as her tenancy would be ending. In the PHP the Housing Officer noted they had provided general advice and would refer Ms D to the Council’s HOPE Team by 2 June. They would also refer her to the Housing and Employment Team by 2 June. They provided links to private rental search sites. The Council emailed the PHP to Ms D on 9 May. Ms D says she did not receive the PHP.
8. I understand there was some contact between Ms D and the HOPE Team in 2023 but I have no supporting evidence. In July Ms D emailed the Housing Officer that she could not find affordable private rentals and wanted to be considered for social housing. I have no evidence of the Council responding. On 19 December Ms D asked the Housing Officer for an update on her case. The Council did not respond.
9. On 7 March 2024 Ms D asked the Council to review her PHP. On 4 April the Council reallocated Ms D’s case to another Housing Officer. The Council said the HOPE Team had previously offered a private rental property which Ms D had declined. The PHP should now be reviewed and to consider another referral to the HOPE Team and a referral to BEAM. On 16 May the Council says it reviewed the PHP. A Housing Officer spoke to Ms D that day, but I have no contemporaneous record of that discussion. On 20 June Ms D emailed the Council. She had spoken to the Housing Officer about debt relief. She had been told she was not eligible for assistance because her debt exceeded a set amount. She asked the Council to explain eligibility criteria for debt relief and to review its decision. On 8 July Ms D emailed the Council again, she had not received a reply to her previous contact and lodged a formal complaint. She also said her PHP not been reviewed since May 2023.
10. On 22 July the Council responded to the complaint. It accepted the Housing Officers had failed to reply to requests for an update and had not completed inquiries on the case. It apologised for the delay and accepted Ms D had not received tailored advice on her debt. The Council provided information about a debt relief service in the complaint response. It also said the Housing Officer should have explained the decision as to why Ms D was not eligible for assistance under the Prevention Fund. A Housing Officer would review and update the PHP by the end of July. It apologised for not keeping the PHP under review. That same day Ms D asked the Council to escalate her complaint. She said her rent had increased and requested a discretionary housing payment. She had been told by the Housing Officer the Council could clear debts up to a set amount and she was not entitled to assistance because her debt exceeded the set amount.
11. On 13 August the Housing Officer emailed Ms D with a copy of the reviewed PHP. When they had spoken in May Ms D had requested financial assistance from the Council. The Officer had spoken to colleagues and found the Council could not directly assist Ms D with her debt. Following a referral to BEAM Ms D had now been successfully rehoused into a private rental property. I have asked the Council about BEAM and its contact with Ms D, it has been unable to provide me with any supporting evidence of what actions were taken.
12. On 20 August the Council issued its final stage complaint reply. It apologised for ongoing delays. The PHP had now been updated and a referral made to the Housing and Employment Team in August who could support Ms D with ‘income maximisation’. It advised how to apply for a discretionary housing payment. The Council also said Ms D was not eligible for Prevention Fund assistance, this was used to assist people facing eviction because of rent arrears. There had been ‘a misunderstanding’ by the Housing Officer who had incorrectly told Ms D the Prevention Fund could be used to cover personal debt. The Council apologised for the confusion caused and that it had not explained this sooner.

What should have happened

Assessments and Personal Housing Plans

13. Councils must complete an assessment if they are satisfied an applicant is homeless or threatened with homelessness. The Code of Guidance says, rather than advise the applicant to return when homelessness is more imminent, the housing authority may wish to accept a prevention duty and begin to take reasonable steps to prevent homelessness. Councils must notify the applicant of the assessment. Councils should work with applicants to identify practical and reasonable steps for the council and the applicant to take to help the applicant keep or secure suitable accommodation. These steps should be tailored to the household, and follow from the findings of the assessment, and must be provided to the applicant in writing as their personalised housing plan. (Housing Act 1996, section 189A and Homelessness Code of Guidance paragraphs 11.6 and 11.18)

Duty to provide Advisory Services

14. Councils must provide to anyone in their district information and advice free of charge on matters including:

• securing accommodation when homeless.
• the rights of people who are homeless or threatened with homelessness.
• the duties of the authority.
• any help that is available from the authority or anyone else, for people in the council’s district who are homeless or may become homeless (whether or not they are threatened with homelessness); and
• how to access that help.

Prevention Fund

15. The Council has a Prevention Fund which is a discretionary fund used to prevent homelessness. It is primarily used for homelessness applicants who face eviction due to rent arrears. The Council will offer to reduce the rent arrears if the applicant can remain in the accommodation.

Housing and Employment Team

16. This Team provides specialised support to homelessness applicants to find work or training. It also offers advice on money management and debt support.

HOPE Team

17. The HOPE Team assists single homelessness applicants to secure accommodation through the Private Rented Scheme. It can offer assistance with the first months’ rent and deposit on a property.

BEAM

18. BEAM worked with applicants to prevent homelessness including supporting residents into employment. The Council no longer uses BEAM.

Was there fault by the Council

19. The Council failed to reply to Ms D’s requests for updates on her case from the outset of her asking for assistance. The Council has acknowledged it failed to provide updates in its formal complaint response to Ms D.
20. The Council delayed issuing the PHP to Ms D. It had all the information it needed from Ms D by mid-February but took until 3 May 2023 to produce the document. Furthermore, the Council failed to carry out the actions required of it in the PHP. It failed to make referrals to other service areas. It also failed to provide tailored debt advice to Ms D; this latter point has already been accepted as fault by the Council in its previous complaint response. The Council also did not review the PHP until August 2024, and this was only as a result of Ms D making a formal complaint. There is no evidence of Ms D receiving a reasonable level of support and advice over an 18 month period.
21. The Council provided minimal debt advice to Ms D and the information it did give her was incorrect. A Housing Officer wrongly suggested the Prevention Fund could be used when in fact it is never available to help with personal debt and is primarily used to reduce rent arrears to prevent an applicant being evicted. This caused confusion and additional time and trouble to Ms D who kept chasing up the Council for clarity on whether she was eligible for assistance.
22. Ms D told me she did not receive the May 2023 PHP. I can see the Council emailed her on 9 May so I am satisfied the PHP was sent, I cannot say why Ms D did not see the email. Ms D also said the Council’s final complaint response wrongly refers to her requesting a discretionary housing payment. In her 22 July 2024 email to the Council Ms D asked about a discretionary housing payment so I am satisfied the Council was correct to refer to it in its response.

Did the fault cause an injustice

23. The faults by the Council meant Ms D did not receive an acceptable level of advice and support for at least 18 months and was caused avoidable time and trouble chasing up the Council. Ms D says that over this time her debts increased. I am unable to say if the correct level of advice had been provided sooner that Ms D’s debts would have been lower or that the fault by the Council is solely responsible for any additional debt being incurred. I cannot ask the Council to issue redress in relation to Ms D’s debts. I appreciate this will be disappointing for Ms D.

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Action

24. The Council says it has already made service improvements including increased case supervision, new service targets to issue PHPs and Managers review PHPs to check actions have been completed. Those are all welcome measures. To remedy the injustice caused to Ms D the Council has agreed to my recommendation and will pay her £150 for time and trouble and £250 for the lack of service.
25. The Council should provide us with evidence it has complied with the above actions within four weeks of the case closing.

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Decision

26. I find fault causing injustice. I have completed the investigation because the Council agrees to pay Ms D redress.

Investigator’s decision on behalf of the Ombudsman

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Investigator's decision on behalf of the Ombudsman