The Local Government and Social Care Ombudsman has criticised Hackney Council for excessive delays in writing off a resident's benefit debt, leading to a £200 symbolic payment.
Background of the Case
In December 2025, the east London council agreed to pay Ms B, a resident, £200 for causing distress and financial hardship. The council claimed she had been overpaid £3,300 in housing benefit.
Ms B was told she was in arrears in January 2023. Despite her appeal, the council continued to recover money, collecting over £1,600 in total. She repeatedly sought an explanation, but officers nearly doubled the outstanding figure before eventually dropping the debt entirely.
Ombudsman's Findings
The LGSCO found the council at fault for forcing Ms B to chase information and for taking too long to review her case. The watchdog stated that debt collection should have been suspended upon her appeal.
Ms B argued the council miscalculated her income and that the money was irrecoverable. She sent multiple follow-ups but received only repeated calculations, with the arrears later increasing to £6,000.
Resolution and Compensation
After Ms B complained to her local councillor, the council ruled in her favour in November 2024. In January 2025, it wrote off the debt and refunded the £1,600 recovered.
However, Ms B complained to the Ombudsman that the council never apologised or explained the two-year delay. The watchdog found the delay excessive, worsening the injustice, and ordered the £200 symbolic payment.
Council's Response
A Hackney Council spokesperson said: 'We are sorry for the distress this has caused the resident and acknowledge that we have not dealt with this case properly, and fell short of the standards we and our residents expect.' They added that the money has been refunded, compensation paid, and lessons will be learned to improve service.
