Summary: Ms X complained about how the Council dealt with her homeless applications. She said this distressed her and caused her financial difficulty. There was fault in the way the Council delayed accepting its duty, delayed providing accommodation and placed Ms X and her family in bed and breakfast accommodation for more time than allowed in guidance. There was also fault in the complaint handling. Ms X suffered distress, uncertainty and was placed in financial difficulty. The Council has agreed to apologise, make a financial payment and issue guidance to its staff.

The complaint

1. Ms X complained about how the Council dealt with her homeless applications. She said this distressed her and caused her financial difficulty.

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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 an injustice, we may suggest a remedy. (Local Government Act 1974, sections 26(1) and 26A(1), as amended)
3. If we are satisfied with a Council’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)
4. When considering complaints we make findings based on the balance of probabilities. This means that we look at the available relevant evidence and decide what was more likely to have happened.

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How I considered this complaint

5. I read Ms X’s complaint and spoke to her about it on the phone.
6. I considered information provided by Ms X and the Council.
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

Background information

8. Part 7 of the Housing Act 1996 and the Homelessness Code of Guidance for Local Authorities set out councils’ powers and duties to people who are homeless or threatened with homelessness.
9. Someone is threatened with homelessness if, when asking for assistance from the council:

• they are likely to become homeless within 56 days; or
• they have been served with a valid Section 21 notice which will expire within 56 days. (Housing Act 1996, section 175(4) & (5)

10. 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)
11. Councils must take reasonable steps to help to secure suitable accommodation for any eligible homeless person. When a council decides this duty has come to an end, it must notify the applicant in writing (Housing Act 1996, section 189B)
12. If a council is satisfied an applicant is homeless, eligible for assistance, and has a priority need the council has a duty to secure that accommodation is available for their occupation (unless it refers the application to another housing authority under section 198). But councils will not owe the main housing duty to applicants who have turned down a suitable final accommodation offer or a Housing Act Part 6 offer made during the relief stage, or if a council has given them notice under section 193B(2) due to their deliberate and unreasonable refusal to co-operate. (Housing Act 1996, section 193 and Homelessness Code of Guidance 15.39)
13. If someone contacts a council seeking accommodation or help to obtain accommodation and gives ‘reason to believe’ they ‘may be’ homeless or threatened with homelessness within 56 days, the council has a duty to make inquiries into what, if any, further duty it owes them. The threshold for triggering the duty to make inquiries is low. The person does not have to complete a specific form or approach a particular department of the council. (Housing Act 1996, section 184 and Homelessness Code of Guidance paragraphs 6.2 and 18.5)
14. Councils can suggest alternative solutions in cases of potential homelessness where these would be suitable and acceptable to the applicant. However councils must not do this to avoid their legal duties, especially the duty to make inquiries into the applicant’s homelessness. The Ombudsman has criticised councils for ‘gatekeeping’ practices, for example, failing to take a homelessness application at the earliest opportunity.
15. A council must secure interim accommodation for an applicant and their household if it has reason to believe the applicant may be homeless, eligible for assistance and have a priority need. (Housing Act 1996, section 188)
16. Examples of applicants in priority need are:

• people with dependent children;
• pregnant women;
• people who are vulnerable due to serious health problems, disability or old age;
• care leavers; and
• victims of domestic abuse.

17. The law says councils must ensure all accommodation provided to homeless applicants is suitable for the needs of the applicant and members of their household. This duty applies to interim accommodation and accommodation provided under the main housing duty. (Housing Act 1996, section 206 and Homelessness Code of Guidance 17.2)
18. Wherever possible, Councils should avoid using bed and breakfast accommodation. (Homelessness Code of Guidance paragraph 17.33)
19. Bed and breakfast (B&B) accommodation can only be used for households which include a pregnant woman or dependent child when no other accommodation is available and then for no more than six weeks. B&B is accommodation which is not self-contained, not owned by the council or a registered provider of social housing and where the toilet, washing, or cooking facilities are shared with other households. (Homelessness (Suitability of Accommodation) (England) Order 2003 and Homelessness Code of Guidance paragraph 17.35)
20. The Council complaint policy confirmed the stage one and stage two response details. The policy confirmed if a complainant is not satisfied with the response they can ask for an escalation.

What happened

21. This is a summary of events, outlining key facts and does not cover everything that has occurred in this case.
22. Ms X previously rented a property. The landlord issued her with a section 21 notice. Ms X said she approached the Council in July 2023 to support her, and the Council asked her to complete an application.
23. The Court issued a possession order in August 2023. Ms X said she presented to the Council as homeless and provided the completed application form. She said the Council lost the application form.
24. Ms X left the property in September 2023. She moved into an annex room in the garden of a private home, paying £1,500 per month rent, but the owner would not provide any agreement, meaning she could not claim housing benefit. She could not afford this rent, so borrowed from friends.
25. In October 2023, the Council told Ms X it needed a completed form and information to consider the case. Ms X submitted another homeless application. The Council noted Ms X was supported by a homelessness charity.
26. Ms X and the charity continued to request support from the Council. The charity repeated Ms X and her family were living in a single room in a garden.
27. In January 2024, Ms X could not afford to pay the rent, and could not borrow any more from friends. When she could not pay, the landlord asked her to leave the property. The charity provided Ms X and her family with hotel accommodation for a weekend at the end of January 2024. The Council placed the family in bed and breakfast accommodation after this weekend.
28. Ms X approached a solicitor. The solicitor issued a Letter Before Action (LBA) in February 2024. The Council accepted a relief duty to Ms X and created a Personalised Housing Plan (PHP) on the same day.
29. The solicitor complained on behalf of Ms X the same day. The complaint said the Council failed to support Ms X when she was homeless.
30. The Council spoke to Ms X to discuss her complaint at the end of February 2024. The Council noted the situation and that Ms X approached the Council in July 2023 and provided an application in August 2023.
31. The Council issued its complaint response in March 2024. The Council accepted the delays in this case. The Council confirmed Ms X was on the list for support to get a private rental property. The Council apologised for the distress and anxiety but said it would not refund any costs. The complaint did not offer a right of review or escalation.
32. The charity asked the Council to escalate the complaint to stage two. The charity said the Council did nothing for six months and only acted when a solicitor became involved.
33. Ms X moved into a private rented property at the end of March 2024 with the support of the charity.
34. The Council issued its stage two response in April 2024. The response confirmed the homelessness process was unclear for Ms X. The Council agreed its service was floored before Ms X was placed in bed and breakfast accommodation. The response stated the Council did everything possible to ensure Ms X was not in hotel accommodation but there was no other accommodation available. The Council confirmed it was satisfied since accepting the relief duty, it satisfied duty. The Council apologised for the delay in accepting the homeless application and offered Ms X £400.
35. Ms X was not satisfied with the Council’s response and has asked the Ombudsman to investigate. Ms X would like the Council to make a financial payment.
36. In response to my enquiries the Council stated it had no records of Ms X approaching the Council in July 2023. It stated Ms X chose to rent an unaffordable, unsuitable property but accepted delays in this matter.

My findings

37. Ms X said she approached the Council in July 2023 and August 2023. The Council has not shown this did or did not happen. Ms X had a section 21 notice and a possession order. She later spoke to the Council about this date and the Council cannot evidence otherwise. I am satisfied, on the balance of probabilities, Ms X approached the Council in July 2023.
38. The Council should have acted in July 2023. The information available, would give the Council reason to believe Ms X might be homeless or threatened with homelessness. An applicant does not have to fill in a particular form. The Council should not send an applicant away to fill a form in. The Council, therefore had a duty to make inquiries into what, if any, duty it owed. This is a low threshold. It failed to do so. This is fault. This caused Ms X avoidable distress and uncertainty.
39. Had the Council acted as it should, it would have contacted Ms X the same day and decided whether it was reasonable for her to stay in the property. Ms X was being evicted. She received a possession order shortly after this time. A council should not wait for a possession order or bailiff action to make a decision on homelessness. I therefore find, on balance, if not for the fault, the Council would have decided it had reason to believe Ms X might be homeless and might be in priority need.
40. Ms X left the property in September 2023, when the possession order required her to. The Council had a duty to provide Ms X with interim accommodation while it made inquiries. It did not do so. The Council then cited not having information from Ms X as a reason for not providing accommodation. This is fault and distressed Ms X.
41. Because of the Councils fault, Ms X was left in the position of deciding to wait for bailiffs to arrive at her property, or to find a property for her family. She found an unsuitable property to ensure her family were not homeless. She agreed to pay a high rent, with little option, and could not get a tenancy agreement, impacting her benefits.
42. Ms X paid the landlord £1,500 per month for four months. The Council should have been providing Ms X with accommodation for this period. Had it done so, Ms X would still have had to pay for it. However, on balance, it would not have been nearly as expensive. The local housing allowance rate for the Council’s area is £912.50 per month for two-bedroom accommodation. On this basis, I find Ms X experienced avoidable financial loss of £587.50 per month, a total of £2,350.
43. The Council placed Ms X and her family in bed and breakfast accommodation for ten weeks. This is over the six weeks set out in the code of guidance. The guidance does not reference availability or effort. Families should not be placed in bed and breakfast for more than six weeks. Ms X and her family were. This is fault. This distressed Ms X and the family lived in unsuitable bed and breakfast accommodation for an extra four weeks.
44. The Council has stated it did act when it knew Ms X was homeless. Ms X and the charity contacted the Council several times with no decision. The evidence showed the Council was considering the matter, but not acting. It was only after the solicitor issued the LBA, the Council acted. The Council homelessness support should be easy to access and the bar to assess is low. It should not take a solicitor letter to get the Council to accept its duty. This is fault and distressed Ms X.
45. When responding to a complaint, the Council should explain the right of escalation. The stage one response did not offer this. This is fault.
46. The Council acted when it received increased demand for temporary accommodation. The Council has recruited more staff and increased its temporary accommodation options. We welcome this.

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Agreed action

47. To remedy the outstanding injustice caused to Ms X and her family by the fault I have identified, the Council has agreed to take the following action within 4 weeks of my final decision:
• Apologise to Ms X for the fault identified in this case. This apology should be in accordance with the Ombudsman’s new guidance Making an effective apology.
• Pay Ms X £200 as an acknowledgement of the time and trouble she has spent pursuing this complaint.
• Pay Ms X £500 to recognise her distress and uncertainty.
• Pay Ms X £600 for the impact of being placed in unsuitable bed and breakfast accommodation for four weeks more than the six allowed. This figure is based on £150 per week.
• Pay Ms X £2,350 in recognition of her avoidable financial loss.
• Remind relevant staff of the importance of effective complaint handling, including offering escalation.
• Share a copy of this decision with staff in the relevant departments to consider the lessons that can be learned from this case and remind staff of the Council’s duties.
• Refer this decision and the lessons learned outcomes to the Cabinet Member for Housing and the scrutiny committee.
48. The Council should provide evidence of the actions taken to satisfy the recommendations.

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Final decision

49. I have completed my investigation. I have found fault by the Council, which caused injustice to Ms X and her family.

Investigator’s final decision on behalf of the Ombudsman

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Investigator's decision on behalf of the Ombudsman