Devon council says sorry after overcharging tenants

Mid Devon District Council is paying back money to tenants after admitting an error led to them being overcharged. Following a review of its accounts the council identified the error in how it historically calculated rent for some of its tenants.

The majority of those affected have been undercharged and there is no intention of claiming back any money as a result of these historical underpayments. Some tenants were overcharged as a result of this error and the council are currently in the process of calculating the extent of this so that it can provide tenants with information based on their specific circumstances.

A council spokesperson said: “We apologise for this and are working hard to correct the error as quickly as possible.

“Our housing staff have already contacted every tenant affected, by letter, informing them of the issue and apologising for the mistake. We are now in the process of rectifying the error and will be sending out further letters with more detailed advice soon. It is our intention to refund any overpayments tenants have made and all of our tenants will receive a further letter outlining any discrepancies in their rent accounts and detailing the next steps within the next eight weeks.

“Tenants do not need to contact us, we will contact you if you are affected, but anyone with concerns can call our Customer Services team if they wish.

“The council does not intend to claim back any money as a result of underpayments and would like to reassure tenants that any higher rent charges will not come into effect during an existing tenancy agreement. We also need to ensure before making any refunds the Council considers how much of an individual’s rent payments have been paid by Housing Benefit or Universal Credit, or may be in arrears.

“The council has proactively referred itself to the Regulator for Social Housing and is working closely with the Department of Work and Pensions.”

Leader of the Council, Councillor Luke Taylor, said: “It is rare to uncover an historic anomaly within such a prescribed calculation as the rent formula. However, when such issues come to light it is down to the administration of the day to see that actions are taken to address them. We recognise the effect this may have on our tenants while we work swiftly to resolve this mistake, and are sorry for any distress that this causes.

“We welcome the action our auditors have taken in spotting this error and are reassured by the immediate steps council officers have taken to contact our tenants, who will understandably be concerned by this news. Anyone owed a refund will be contacted by our team, you do not need to contact us, and we want to reassure all those affected that we will support them with any changes to their rent charges.”

Further details can be found at: www.middevon.gov.uk/rent-corrections.