The Ombudsman's final decision
Summary: Miss B complained the Council pursued enforcement action even though her account is not in arrears. We have not found fault in the actions of the Council.
The complaint
Miss B complained the Council pursued enforcement action even though her council tax account was not in arrears. Miss B also complained she is vulnerable and was not aware of enforcement action until a home visit took place. Miss B states this has caused significant stress and anxiety. Miss B would like her account passed back to the Council so she can continue her normal monthly payments and she would like the additional costs returned.
The Ombudsman’s role and powers
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) We investigate complaints of injustice caused by ‘maladministration’ and ‘service failure’. I have used the word fault to refer to these. We consider whether there was fault in the way an organisation made its decision. If there was no fault in how the organisation made its decision, we cannot question the outcome. (Local Government Act 1974, section 34(3), as amended)
How I considered this complaint
I have considered the complaint information provided by Miss B and discussed the complaint with Miss B.
I have considered the information provided by the Council.
Both parties had an opportunity to comment on the draft decision. I considered any comments before making a final decision.
What I found
Legal and Administrative Background The Council Tax (Administration and Enforcement) Regulations 1992 cover both the way councils collect payments of council tax and the way councils can recover council tax debt. The Tribunals, Courts and Enforcement Act 2007 and associated regulations cover the way enforcement agents may recover debts.
The council tax bill for the year is due on 1 April. A council will usually collect payment through monthly instalments. If the liable person misses any instalment, the council will send them a reminder. If a payment is still not made or a further payment missed, then the entire outstanding balance will be due (that is the full amount for the rest of the year).
To use the various powers available to it to recover unpaid council tax, a council must apply to a magistrate’s court for a liability order against those it believes are liable. Once a council has a liability order it can take recovery action.
A liability order gives a council the legal power to take enforcement action to collect the council tax and court costs owed. The most commonly used powers are asking for deductions from benefits, getting an attachment of earnings (this means deductions are taken directly from earnings by an employer and passed to the council) or using enforcement agents. The council can decide which recovery method to use but it can only use one method for one liability order at one time.
Key Events Miss B made payments to her council tax account in March, May, June, July, August and September 2023. Miss B missed a council tax payment in April 2023. This left her account £145.69 in arrears.
In June 2023 the Council issued a first reminder for the overdue amount.
The Council issued this reminder by post to Miss B’s address. The reminder letter set out how to make a payment, the next steps for recovery if no payment is made, and how to contact the Council if you are struggling to pay your council tax.
The Council did not receive payment or any correspondence from Miss B, so it issued a second reminder letter in July 2023. The Council issued this reminder by post to Miss B’s address. This reminder letter also sets out how to pay, the next steps for recovery if no payment is made, and how to contact the Council if you are struggling to pay your council tax.
The Council did not receive payment or correspondence from Miss B so it issued a final notice, via post, to Miss B’s address in August 2023. Miss B now owed £881.69, the full outstanding council tax amount for the year. The final notice told Miss B that if she did not pay or contact the Council within 7 days, the Council would begin recovery action which may result in added costs.
Miss B did not pay or contact the Council to discuss her account. In September 2023 the Council issued a summons, via post, to Miss B’s address. The total amount due was now £849.19. The summons detailed Miss B’s options to pay in full or set up a payment arrangement to prevent court proceedings. The letter sets out the next steps for recovery action should Miss B not pay or contact the Council to discuss her account.
The court issued a liability order on 28 September 2023. On 02 October 2023 the Council passed Miss B’s council tax arrears to an enforcement agent. A notice of enforcement was sent to Miss B on 04 October 2023 and a removal notice was delivered to Miss B’s address by enforcement agents on 23 October 2023.
Miss B arranged a payment plan with the enforcement agents after receiving the removal notice on 23 October 2023. Miss B also contacted the Council to raise a complaint and made it aware of her personal circumstances.
Analysis There is no evidence the Council acted with fault when starting recovery action for Miss B’s council tax arrears. The Council issued the correct correspondence to Miss B’s address and there is no evidence to suggest any correspondence was not delivered.
Miss B did not contact the Council until September 2023 when she raised a stage one complaint, meaning the Council were not aware of her personal circumstances until this date. Had Miss B paid the arrears or contacted the Council to discuss her account, the Council may have taken steps to prevent recovery action.
Final decision
We have found no evidence of fault causing injustice by the Council.
Investigator’s decision on behalf of the Ombudsman
Investigator's decision on behalf of the Ombudsman