Council Faces Fallout After 17,000 Double Charged for Taxes

A significant error in the payment processing system has led to over 17,000 residents in the Forest of Dean being double charged for council tax and business rates. This incident, which occurred at the end of August 2023, has prompted the local council to consider terminating its contract with the banking payment services provider involved.

An internal scrutiny group established by the Forest of Dean District Council has concluded that neither council staff nor their service provider, Publica, were responsible for the technical failure. During a recent public meeting, council officials reported that a formal apology was received from both the bank and the third-party contractor, though the names of these entities were not disclosed.

Technical Error Behind the Incident

The issue arose due to a technical glitch that led to duplicate direct-debit requests. According to the task and finish group’s findings, outdated payment processes were mistakenly reactivated during a system upgrade, resulting in the erroneous charges. Additionally, the banking system’s failsafes failed to identify the problem at the time.

John Francis, chairman of the overview and scrutiny committee, emphasized the importance of understanding the root cause of the error. “We welcome the steps taken by the bank and supplier to prevent this from happening again,” he stated, adding that the council was not at fault.

Residents expressed their concerns about the communication surrounding the incident. Many learned about the double charges through social media rather than direct communication from the council. Councillor Tim Gwilliam highlighted the need for accountability, noting that the public did not choose the third-party provider or the bank involved.

Addressing Public Concerns and Future Actions

The council acknowledged the shortcomings in its communication strategy. Councillor Gillian Kilmurray shared feedback from residents who felt blindsided by the lack of direct communication. One resident remarked on the unacceptability of discovering such an issue through a social media post.

As for refunds, Chief Financial Officer Andrew Knott assured the committee that all affected individuals had been reimbursed. He stated that banks were notified of the incident and should have compensated customers for any overdraft fees incurred due to the double charges.

The committee has recommended that the finance cabinet member explore alternative third-party banking providers. They also urged council officers to improve their emergency communication strategies and ensure more proactive outreach in future incidents. Residents and businesses will receive formal thanks for their understanding during this challenging period.

Following the meeting, Finance Cabinet Member Andy Moore expressed gratitude to all teams involved for their swift action in resolving the issue. “Errors of this kind are extremely rare,” he noted, reaffirming that direct debit remains a reliable method for paying council tax and business rates. The council’s focus now shifts to preventing similar issues in the future and enhancing its communication with the public.