Councils are failing vulnerable people and families, putting them at risk of rent arrears and eviction through mistakes in how they process housing benefit claims according to the Local Government Ombudsman.

The Ombudsman upheld over three-quarters (78 per cent) of the complaints made to it last year about housing benefit processing problems, well above the average for the rest of its casework (58 per cent).

Housing benefit was due to be phased out in 2017 following the introduction of Universal Credit (UC). But delays in implementing UC has meant its full roll-out across the country has been delayed until at least 2023 and some 3.6 million people on low incomes are still receiving housing benefit.

The Ombudsman has released a report outlining the common problems identified in the cases investigated. Supplemented with a number of case studies, the report highlights problems with some councils’ understanding of their duties towards claimants and the processes they must follow.

As a result of mistakes made by council staff, it found claimants were running up large debts, being asked to pay back overpayments made directly to landlords, denied reviews and appeals, and put through long periods of stress. Other issues uncovered included:

• A backlog of over 500 appeals against benefit decisions at one council, some dating back two years;
• A tenant being charged rent for a two bed home, instead of the one bed property they occupied; and
• Tenants being evicted while their appeals against a decision had yet to be concluded.

Impact on the vulnerable

Nigel Ellis, Chief Executive at the Local Government and Social Care Ombudsman, said “The cases we highlight show the very real impact of what can happen when councils do not deliver housing benefit properly. Some of our most vulnerable families are refused a fair hearing by having their rights to appeal their council’s decision taken away.

“Although Universal Credit is being rolled out across the country, this is not happening as quickly as anticipated; councils still need to ensure they administer benefits properly until the new system is in place in their area.

“We are issuing this report to provide guidance and good practice advice to help those who administer housing benefits to avoid the pitfalls and common problems.”

Responding to the report, Richard Watts Chair of the LGA’s Resources Board, said: “The Ombudsman has rightly identified the importance of ensuring the best possible accuracy within the housing benefit system, and ensuring councils respond fairly and effectively when mistakes occur. The report highlights important learning for councils and government to take forward to improve fairness and accuracy within the benefits system.

“The funding that councils receive to administer housing benefit falls short of the true costs of administration. Councils have also faced considerable and ongoing pressures and uncertainty due to welfare reforms and changes to the timescales for implementing Universal Credit, which have stretched councils’ revenues and benefits services.

“It is vital that Government recognises the ongoing role of councils in administering housing benefit, and in supporting claimants provides appropriate, timely funding to councils to deliver this role. Doing so ensures that councils are able to provide the fairest, most accurate service that they can.”

By Patrick Mooney, Editor