Mid Devon Council Apologizes for Rent Calculation Error, Self-Reports to Regulator

Mid Devon Council, located in Devon, has voluntarily reported itself to a regulatory body after overcharging tenants due to an error in its historical rent calculations. The council stated that an external audit had uncovered a “historical anomaly,” resulting in approximately 1,200 tenants being overcharged and more than 1,600 being undercharged. The council issued an apology, indicating that the mistake had impacted the majority of its tenants across the district. The specific amounts involved and the exact duration of the error are still under investigation. It confirmed that it has no intention of recovering funds from tenants who were undercharged, while staff are currently “calculating the extent” of the impact for each renter. According to the council, its housing staff have sent letters to all affected tenants, informing them of the issue and expressing regret for the mistake. It also stated that it had referred itself to the Regulator for Social Housing and is collaborating closely with the Department of Work and Pensions (DWP). Council leader Luke Taylor commented: “It is rare to uncover an historic anomaly within such a prescribed calculation as the rent formula.” He further added, “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.” Taylor concluded, “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.” Mid Devon Council announced that it is in the process of rectifying the error and plans to dispatch further letters with more detailed advice soon. It confirmed its intention to refund any overpayments to tenants, with correspondence outlining discrepancies and detailing next steps expected within eight weeks. Concurrently, it stated that no claims would be initiated against tenants who had been undercharged, and higher rent charges would not be implemented during an existing tenancy agreement. Before processing refunds to tenants, the council indicated a need to determine how much of the sum had been paid by housing benefit or Universal Credit, or if the tenant has outstanding arrears. It advised anyone with concerns to contact the customer services team. The BBC has reached out to the DWP for a statement.