Topics
Introduction
1. This briefing document summarises the findings of a Local Government and Social Care Ombudsman (LGO) report, “Focus on Housing Benefit,” published in January 2020.
2. The report highlights common issues observed by the LGO when investigating complaints about how councils administer housing benefit appeals. While Universal Credit is intended to replace Housing Benefit for working-age individuals, the transition has been slower than anticipated. This means that a significant number of vulnerable households still rely on housing benefit, and councils need to maintain effective administration of this system. The LGO report seeks to help councils learn from mistakes and improve their services for housing benefit claimants.
Key Themes and Issues
3. The report identifies several recurring problems related to housing benefit appeals, demonstrating a concerning trend in local authority administration. These issues can lead to significant hardship and financial instability for vulnerable claimants.
Failing to Identify an Appeal
4. Problem: Councils often fail to recognise a claimant’s communication as an appeal, particularly when the language is not explicitly defined as such. Claimants may express dissatisfaction without using technical terms like “review request” or “appeal.”
5. Quote: “Claimants should not be expected to understand complex regulations, or it assumed they have access to advice services. Sometimes they will simply believe their council has got something wrong and express that in simple terms.”
6. Example: Julie’s case, where the council failed to recognise her repeated challenges to their version of events as an appeal or review request, leading to a debt of over £1,000, highlights this issue.
7. Learning Point: Councils must look for the intent of the claimant’s communication, not solely for specific wording, and must proactively seek clarification from the claimant if needed.
Failing to Process an Appeal
8. Problem: Councils sometimes wrongly reject valid appeal requests, especially when they are recovering overpayments from landlords. There is often a lack of knowledge on the part of customer service staff about correct appeal processes.
9. Quote: “The council refused to recognise this as a valid appeal and implied this was because it was recovering the overpayment from her landlord.”
10. Example: Beverley’s case illustrates this, where her appeal was not processed after the council decided to recover overpayment from her landlord.
11. Learning Point: Councils need to recognise valid appeals regardless of how they are choosing to recover overpayments, and any staff dealing with enquiries need to be well-versed in the process. Appeals that the council believes are outside of the tribunal’s jurisdiction should still be passed to the tribunal to make the decision.
Delays in Appeal Processing
12. Problem: Significant delays in processing appeals are common, sometimes extending to years. Councils often lack the resources or systems to handle appeals promptly, causing considerable stress and uncertainty for claimants.
13. Quote: “Our investigation discovered around 500 other claimants had made appeals against the council’s decisions and were waiting for them to be dealt with. The oldest of these appeals had been waiting two years for the council to act.”
14. Example: Sonia’s case highlights a two-year backlog of appeals that the council was struggling to deal with.
15. Learning Point: Councils should aim to process or pass on appeals within four weeks and must have processes in place to identify and address backlogs. Timely processing is essential.
Failure to Act on New Evidence/Changes in Circumstances
16. Problem: Councils struggle to update records and act promptly on changes in a claimant’s circumstances, often leading to overpayments and confusion.
17. Quote: “It is equally important councils have procedures in place to react to changes in circumstance. Delays in updating a claim are a frequent cause of overpayment.”
18. Example: David’s case shows how slow updates from both benefits and housing departments, as well as DWP changes, created confusion and an overpayment.
19. Learning Point: Prompt action and inter-departmental coordination are crucial to prevent errors and minimise claimant disruption, and councils must have systems to identify any appeals outstanding for more than four weeks.
Overpayment Recovery While Appeals are Outstanding
20. Problem: Councils often start recovering overpayments before considering or even acknowledging a claimant’s appeal, which is contrary to the spirit of the legislation.
21. Quote: “Less than a month after making its decision, and before considering Hussain’s appeal, the council started to recover the overpaid housing benefit.”
22. Example: Hussain’s case shows how the council began to deduct money before even considering his appeal.
23. Learning Point: Councils should not begin overpayment recovery until at least one month has passed (to allow time for appeal) or until an appeal has been resolved.
LGO’s Role and Findings
24. The LGO investigates complaints about council administration of housing benefit appeals.
25. They do not rule on entitlement but on the administration of processes.
26. In 2018-19, they upheld 78% of housing benefit complaints investigated, significantly higher than their average of 58% across all investigations. This indicates serious issues with the administration of housing benefit appeals.
27. The LGO’s role is to ensure that councils adhere to proper procedure and act fairly toward claimants.
Putting Things Right
28. The LGO recommends several remedies when a council is found at fault:
- Apologies to the claimant.
- Financial remedies for distress caused (typically £100-£300, but more in severe cases).
- Financial compensation for time and trouble.
- Review of policies, procedures, staff training and resources to avoid future errors.
Local Accountability
29. The LGO encourages local councillors to scrutinise their council’s housing benefit services. Councillors should use complaints data to identify service issues. They should ask questions such as:
- How many appeals are received and processed?
- Are there enough staff to handle appeals effectively?
- How is Universal Credit implementation being handled?
- Are appeals being handled correctly and passed to tribunals when needed?
- Is the council waiting one month before starting overpayment recovery?
- Are recovery actions being put on hold when an appeal is received?
Conclusion
30. The LGO report highlights critical failings in the administration of housing benefit appeals by local councils. These failures can have profound impacts on vulnerable people, leading to financial hardship, stress, and the risk of homelessness. It is essential that councils take the LGO’s findings seriously, implement the learning points, and ensure that they are administering housing benefit fairly, legally, and efficiently. This report is an important resource for councils to improve their services and ensure that claimants’ rights are respected. Local councillors should use this report to challenge any poor administration practices within their own authority and ensure accountability and transparency.