Gloucestershire Council Considers Contract Termination After Double Charges

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. The incident occurred at the end of August 2023, prompting the local council to consider terminating its contract with the banking services provider involved.

Following the blunder, the Forest of Dean District Council established a scrutiny group to investigate the cause of the issue. The findings revealed that neither council staff nor Publica, the organization responsible for delivering council services, were at fault. Instead, the double charges resulted from a technical failure within the systems of a third-party payment service provider.

In a public meeting, council leaders accepted formal apologies from both the bank and the contractor, although they refrained from disclosing their names. John Francis, chairman of the overview and scrutiny committee, stated that the error stemmed from outdated payment processes that were accidentally reactivated during a system upgrade, leading to duplicate direct-debit requests. He emphasized that the banking failsafes failed to catch the issue at the time of the incident.

“The group concluded that the incident was not caused by any wrongdoing by the council, staff, or colleagues in Publica,” Francis reported. “Instead, it was a technical error within the third-party supplier payments system.” He further acknowledged that the incident caused understandable concern among residents and noted the need for improved communication from the council.

Concerns regarding the council’s communication strategy were raised by Tim Gwilliam, a councillor representing the Progressive Independents. He criticized the administration for not addressing the issue directly with the public, stating, “The public didn’t pick the third party, choose the bank; it was a matter for this council. There is a measure of accountability that has to be there.”

Councillor Gillian Kilmurray echoed these concerns, recounting how many residents learned about the incident through social media rather than official channels. One resident expressed frustration about finding out through a Facebook post, highlighting the potential distress caused to those affected by the double charges.

The council’s chief financial officer, Andrew Knott, confirmed that all affected residents have been refunded. He added that banks have been informed, ensuring that individuals who incurred overdraft charges due to the error received reimbursements. Knott reassured residents that anyone experiencing ongoing issues should reach out directly for assistance.

In light of the incident, the committee recommended that the finance cabinet member explore alternative banking providers. They also suggested enhancing the council’s communication strategy to ensure more proactive outreach during emergencies. Councillors expressed a desire to formally thank residents and businesses for their patience throughout the ordeal.

Finance cabinet member Andy Moore expressed gratitude to the teams who worked diligently to resolve the problem swiftly. He reiterated his apology for the disruption caused, asserting that errors of this nature are rare. Moore emphasized that direct debit remains a safe and reliable method for paying council tax and business rates.

As the council moves forward, the focus will be on preventing similar incidents in the future and improving communication to ensure that residents are informed promptly about any issues affecting their payments.