Summary: We will not investigate this complaint about housing allocations because there is not enough evidence of fault and where fault may have occurred, we are satisfied with the actions already taken by the Council.

The complaint

1. Mr Y complained the Council forced him to pay a £100 deposit so he could move into permanent accommodation, which he says he had to borrow. Mr Y says he was then told he had to change his benefits to universal credit to receive housing benefit, which he did not want to do. He has also said the Council failed to make reasonable adjustments for him to make his complaint.
2. Mr Y says he lost the £100 deposit which the Council refused to refund, and he has not been able to move into permanent accommodation. He says he has been unable to chase his complaint, and he is still in emergency housing, which he says is in disrepair.

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The Ombudsman’s role and powers

3. 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:

• there is not enough evidence of fault to justify investigating, or
• we could not add to any previous investigation by the organisation, or
• further investigation would not lead to a different outcome.

(Local Government Act 1974, section 24A(6), as amended, section 34(B))

4. We provide a free service but must use public money carefully. We may decide not to start or continue with an investigation if we are satisfied with the actions an organisation has taken or proposes to take. (Local Government Act 1974, section 24A(7), as amended)

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How I considered this complaint

5. I considered information Mr Y provided and the Ombudsman’s Assessment Code.

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My assessment

6. When Mr Y was offered permanent accommodation, it was with an external property agent. The agent asked Mr Y to pay a deposit of £100 to take the property off the market. This would be refundable if Mr Y proceeded to rent the property and was taken to allow the property agent to carry out checks about Mr Y. The Council’s complaint response shows that Mr Y was told, and he confirmed his understanding to the Council in an email, that he should not pay the £100 deposit. Mr Y then went on to pay the deposit.
7. The Council then advised Mr Y that he would need to change his benefits from Employment Support Allowance and Personal Independence Payments to Universal Credit, in order that he could then have housing benefit to help him pay the rent on the property, which was a private rental. Mr Y did not however, want to move from his existing benefits to Universal Credit. He therefore withdrew his agreement to move into the private rental property. The property agent has refused to refund the £100, as Mr Y did not then rent the property.
8. As part of its complaint response, the Council explained that it had told Mr Y not to pay the deposit, and that it was unable to refund the £100 to him as it was a deposit held by the property agent and not the Council. It also said that Mr Y’s reason for withdrawing from the agreement was not a suitable reason for the agent to refund the deposit.
9. The Council did however recognise that its complaint handling had been delayed, and Mr Y had repeatedly asked for help to progress his complaint when he contacted the Council by telephone but had been unable to do so. It apologised for this and offered Mr Y £75 for the delay in his complaint being dealt with and £150 for the Council’s failure to make reasonable adjustments for Mr Y to progress his complaint by telephone, totalling £225. Following the Council’s final response to Mr Y’s complaint, Mr Y also moved into permanent accommodation in August 2025.
10. As the deposit was paid to the property agent and not the Council, with the Council having told Mr Y he did not need to make the payment, it is unlikely we would find the Council at fault to not refunding the deposit Mr Y paid to the property agent. We will not investigate this complaint.
11. The Council has however, agreed that it failed to make reasonable adjustments and that its complaint handling was delayed. The remedy offered, totalling £225, is in line with our guidance on remedies and is a proportionate and appropriate remedy for the injustice caused by its fault. Consequently, it is unlikely further consideration of this complaint would lead to a different outcome, and we are satisfied with the remedy the Council has already offered concerning its failure to make reasonable adjustments for Mr Y. We will not investigate this complaint.

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Final decision

12. We will not investigate Mr Y’s complaint because there is not enough evidence of fault and where fault may have occurred, we are satisfied with the actions already taken by the Council.

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Investigator's decision on behalf of the Ombudsman