Colchester Council overcharged residents by £893k last year

Data obtained via a Freedom of Information request shows the council has had to repay hundreds of thousands of pounds at the end of each of the last six financial years, with the number peaking in 2022-23.

In the most recent financial year 2023-24, Colchester Council overcharged 5,647 residents a grand total of £893,182, which equates to roughly £158 per resident.

The amount of money overcharged the year before was even higher, when 7,330 residents were overcharged £897,304.

Overcharged – residents are being overcharged an average of £158 per year (Image: Pexels)

The figures show a marked jump in both the number of residents being overcharged and the amount of money they are being overcharged by.

In 2018-19, for example, the amount of money the council overcharged residents was £675,787 – 25 per cent lower than the most recent figure.

The number of residents overcharged was also significantly lower, standing at 4,927.

The figures come weeks after the Gazette also revealed the council pursued thousands of residents every year for failing to pay tax by serving court liability orders.

In the last financial year, for example, 4,915 Colchester residents were successfully prosecuted by the council for failing to pay council tax.

Councillor Mark Cory, Colchester Council's deputy leader, said anyone who believes they may have been charged incorrectly should get in contact with the local authority.

He said: “A number of different factors can lead to errors on residents’ council tax accounts, including people moving home within the city, or to the city from a different local authority area; and disputes over council tax banding.

Contact – anyone who believes they have been overcharged for council tax should contact the local authority (Image: Newsquest)

“The Valuation Office Agency (VOA), part of the HMRC, is legally responsible for assessing and altering council tax bands, not the local authority.

“Anyone who believes their council tax banding is too high should appeal to the VOA to review their Council Tax banding.

“We have a very proactive team here in Colchester who always look to help and work with residents to resolve any issues and find a solution as quickly as possible.

“We encourage residents who believe they have been charged incorrectly to get in contact.”

A spokesman for Colchester Council said: “We understand the importance of ensuring accurate billing and want to assure residents that in the vast majority of cases, overcharges are not due to internal errors on our part.

“In most instances, apparent overcharges stem from changes in a resident's individual circumstances, not billing mistakes by the council. These changes can include:

Successful band challenges: Sometimes, residents may appeal their Council Tax band with the Valuation Office Agency (VOA) and achieve a reduction. This can lead to a recalculation of their bill, potentially resulting in a perceived overcharge to reflect the new band.

Unreported change of address: If a resident moves home but fails to notify the council promptly, they may continue to be billed for their previous address. Once the update is received, an adjustment is made, potentially showing an ‘overcharge’ to rectify the billing period for the unoccupied property.

Backdated discounts or exemptions: Residents applying for discounts or exemptions on their Council Tax may have their eligibility backdated. While this ultimately reduces their overall bill, it can initially appear as an overcharge due to the recalculation for the past period.

Refunds due to mid-year moves: A significant reason for processing refunds is that many residents choose to pay their annual Council Tax charge in advance over 10 monthly instalments (April to January). If a resident moves out of the Colchester area during the year, they will have overpaid and be entitled to a refund for the remaining months they won't be residing in the property.

“It's important to understand that we cannot proactively prevent these situations, as they arise from individual circumstances beyond our control. That is why we encourage residents to promptly inform us of any changes to their occupancy or eligibility for discounts and exemptions to ensure their bills remain accurate.”