OVERPAID COUNCIL TAX SUPPORT, OFFICIAL ERROR

PLEASE HELP…My LA has made a number of official errors in calculating CTS for a number of my clients, the LA say in letters to the clients that is official error and the client could not have known they were receiving too much CTS but even though it is 100% official error the LA is insisting on amending the award and billing my clients for the unpaid council tax. what can my clients do in this case ???

Off the top of my head; may be things I haven’t considered - one option is to ask for discretionary reduction of the bill under s13A Local Government Finance Act 1992 on the grounds of the admitted mistake and exercise appeal rights to the VTE if the request is refused.

Thanks Elliot, I have asked for 13a but if cl income shows they can afford it 13a not going top be granted, but what can VT do in these cases, the appeal is against what exactly ???, nothing in CTR scheme talks about official error so what powers does the VT have in such a case.

The Valuation Tribunal most certainly does have jurisdiction to hear an appeal against refusal of a discretionary reduction and it is not just a JR-style reviewing function but a merits appeal - that is the view the retired president took in a case involving East Riding of Yorkshire Council and now enshrined in a practice note: see paragraphs 25 to 30 on page 4 of this: http://www.valuationtribunal.gov.uk/Libraries/Publications/Practice_Statement_-_A11_CTR_Appeals.sflb.ashx.  If the VT considers there is a compelling case for a discretionary reduction, even if the circumstances fall outside any published local policy on discretionary reductions, they can step into the authority’s shoes and award the reduction. 

The VT is separately going through a period of indecision at the moment about jurisdiction over excess CTR per se, but it seems to me that logjam can be by-passed if the taxpayer presents the matter as an application to the authority for a discretionary reduction equal to the amount that would have been non-recoverable in the old CTB days.  It’s less efficient than directly challenging the excess CTR, because the discretionary application is a fresh matter, with a mandatory local grievance procedure if the application is refused, so it’s going to delay the Tribunal appeal by about two months, but you can ultimately get it to Tribunal.

Thanks HB, If I have appealed it to the VT against the recovery but not asked for a section 13a could the VT of their own power award a discretionary payment do you think, ?

See paragraph 30 of the practice note: the President would have to decide personally whether to allow that ... except there isn’t any president at the moment!  I think the safest thing would be to launch a self-contained application for discretionary reduction so there is no doubt about jurisdiction.

many thanks HB, will do, our LA has pointed out to us that CTR is not a benefit so the old rules don’t apply, but we are trying to get a policy decision from them to clarify what should happen if its the LA fault in these cases.  a matter of principle you could say, is at stake

ADC’s own page on CTS overpayments ( http://www.ashfield-dc.gov.uk/residents/revenues-and-support/council-tax/council-tax-support/council-tax-support-overpayment.aspx ) actually says this.

“What if the overpayment was not my fault?

If you actually reported a change to us and we did not act upon it for a long time, then we will not automatically ask for it to be repaid. Much will depend on whether you knew whether you were being overpaid benefit at the relevant time.”

(Although it looks like this could just be boilerplate refactored from an old HB/CTB overpayment page.)

Thanks Jon, I did point that out to ADC but they are taking a hard line and seem to have chosen to ignore the website comment.!!!

ALSO PLEASE. Does anyone have information on how their own LA deal with such cases ?

In cases where the overpayment has resulted from official error and the client hasn’t contributed/couldn’t reasonably have been aware of the overpayment our LA has been awarding DHP to equate to the ‘lost’ CTR resulting from the overpayment.

thanks 1964, the client would of course have to be getting some HB to get a DHP, but it sounds like a good compromise. MORE EXAMPLES WELCOME

Interesting .. our LA say they can not cover council tax with a DHP, as per the DHP Guidance Manual:

1.13 Following the abolition of Council Tax benefit from April 2013, DHPs can no longer be awarded towards Council Tax liability. This means any DHPs being paid towards Council Tax liability must have ended on 31 March 2013. A shortfall between local Council Tax support and council tax liability cannot be met by DHPs.

1.14 The Council Tax Benefit Abolition (Consequential Amendments) Regulations 2013 remove reference to Council Tax and Council Tax benefit within the Discretionary Financial Assistance Regulations 2001.

They are proposing a formal policy to have a certain amount of money ring-fenced to cover s13 write-offs. (I’m not sure what happens when that is used up before the end of the year ..)

thanks Jon, interesting, I think Mansfield council have used DHPs to reduce c/tax liability also, not sure how they square that circle, as far as the money running out for section 13a the VT make it cleart hat the LA financial circumstances should not prevent a 13 a discount if I am not mistaken,
MORE EXAMPLES WELCOME

http://www.legislation.gov.uk/uksi/2001/1167/regulation/2

2(3) (b)in the case of a person entitled to housing benefit who requires further financial assistance in order to meet housing costs (other than costs in respect of council tax) arising from his liability to make periodical payments in respect of the dwelling which he occupies as his home.

Yes, the Discretionary Financial Assistance Regulations 2001 was amended so DHP can’t be paid for CTR.
The Exceptional Hardship Payment (EHP) was created to cover for help with Council Tax so that’s where the LAs I think are getting confused, but then it’s only terminology used, there are still funds available for discretionary payments for help with housing and council tax costs.

The same happens in my current LA, an EHP paid for the amount of LA error created when identified, the alternative being a write off applied to the same amount.

Chacha, thanks for this, where do I find the regs on EHP, I have never use this before !!!