Council sorry after tenants overcharged by mistake

The council said tenants who were overcharged will be refunded but those undercharged would not be asked to make up the difference

A council in Devon has referred itself to a watchdog after overcharging tenants due to an error in historical rent calculations.

Mid Devon Council said an external audit had exposed the "historical anomaly", with about 1,200 tenants overcharged, and more than 1,600 undercharged.

It apologised and said the error had affected the majority of its tenants across the district, with the sums involved and exact period of time still under investigation.

It said it had no intention of claiming back funds from those tenants who had paid less, but staff were in the process of "calculating the extent" of the impact for each renter.

'Rare' error

The council said its housing staff had contacted all affected tenants by letter, informing them of the issue and apologising for the mistake.

It said it had referred itself to the Regulator for Social Housing and was working closely with the Department of Work and Pensions (DWP).

Council leader 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."

Refunds

Mid Devon Council said it was rectifying the error and would be sending out further letters with more detailed advice soon.

It said it intended to refund any overpayments to tenants, adding they would receive letters within eight weeks outlining discrepancies and detailing next steps.

Meanwhile, it said there would be no claims brought against tenants who had been undercharged, while higher rent charges would not come into effect during an existing tenancy agreement.

Before refunding tenants, the council said it needed to consider how much of the sum had been paid by housing benefit or Universal Credit - or if the tenant is in arrears.

It said anyone with concerns should call the customer services team.

The BBC has contacted the DWP for comment.