A Birkenhead mother says she was left in fear of bailiffs coming to her door after she and her partner were wrongly told they owed thousands of pounds—a debt that only surfaced years later due to a government error.
Lisa Ives and her partner Phillip Richards were originally in a long-standing dispute with the Department for Work and Pensions (DWP) over housing benefit, a case they say they eventually won. But in February 2025, they were shocked to receive a new notification from Wirral Council claiming they owed £3,143.80 in council tax, spanning April 2020 to October 2023.
The couple were told they’d have to pay the amount back over five years, triggering fresh distress—especially for Lisa, who described the fear and mental toll of the situation.
“I was scared to take my babies out of the house because I was worried the bailiffs were going to come to the door,” Lisa said.
“Sometimes I just wanted to curl up in bed and hide from the world.”
How It Started: DWP Housing Benefit Dispute
Back in 2020, Lisa and Phillip informed the DWP that they had started living together. This change should have triggered updates to both their housing benefit and council tax reduction status. But instead, the DWP failed to process the change correctly. As a result, Lisa continued to receive benefits based on incorrect information, and Wirral Council was not informed.
Despite the couple’s efforts—including hundreds of emails trying to fix the issue—no corrections were made at the time. In fact, documents seen by the Liverpool Echo show that Lisa and Phillip were not told they owed any council tax between April 2021 and March 2023, and in March 2022, they received confirmation of support being active.
It wasn’t until July 2022 that they were informed their benefits had changed—more than two years after they first reported the cohabitation.
DWP Tried and Failed to Take Legal Action
Despite the DWP’s error, the department reportedly attempted to take the couple to court over an £8,210.98 housing benefit debt. However, the case was unsuccessful, and the debt was eventually written off in June 2025, according to an email seen by the Echo.
New Council Tax Charges Come Into Play
The couple’s relief was short-lived.
In early 2025, they were notified that they now owed over £3,000 in council tax, a debt they say they were completely unaware of. Lisa had been receiving a single-occupancy discount, which the council later said was invalid because they weren’t informed Phillip was living with her.
Phillip explained, “We were told we didn’t need to pay council tax during that time. Now suddenly we’re being told we owe thousands. We just don’t have that kind of money.”
Council Admits Error After Media Involvement
After the Liverpool Echo contacted Wirral Council, the local authority admitted it had made a mistake in calculating the debt and reduced the amount owed to £970.49. They also apologised for the delay and agreed to remove liability order fees.
The couple are now being asked to repay this updated amount in monthly instalments, beginning with £135.78 in April 2025, followed by £132.00 for 11 months.
Still, Phillip and Lisa say they plan to contest even the reduced amount, claiming they were told at the time that they had no council tax liability—based on the very benefit calculations that were later found to be incorrect.
Council’s Explanation
A Wirral Council spokesperson said:
“The appeal hearing relevant to this case ruled that the original overpayment of housing benefit was the result of an error unrelated to the council… The effect of the judgement on the rate of council tax that should have applied during that time is being investigated.”
The council has said they will update the couple once that review is complete.
DWP Silent on the Matter
The DWP did not respond to multiple requests for comment, despite their role in the original benefits error that sparked the situation.
For Phillip and Lisa, the last few years have been a whirlwind of stress, anxiety, and bureaucratic red tape. While some of the financial pressure has now eased, they remain frustrated that the burden of government errors continues to fall on their shoulders.
“Unless we have got thousands of pounds, we can’t really do anything about it,” said Phillip.
“I am not the council—I don’t have solicitors working for me.”
FAQ’s
Why did Lisa Ives and Phillip Richards receive a £3,143.80 council tax bill?
The bill was issued due to a benefit miscalculation tied to a DWP error, where their change in household status wasn’t updated correctly, leading to a loss of council tax reduction.
Did Wirral Council admit any mistake in the council tax demand?
Yes, after media involvement, Wirral Council admitted an error and reduced the debt to £970.49, also waiving liability order costs.
What caused the original confusion with the DWP housing benefit?
The DWP failed to process a reported change in cohabitation, continuing to issue incorrect benefits and not informing Wirral Council, leading to overlapping errors.
Is the £970.49 council tax bill final?
No, the couple plans to contest the reduced amount, arguing they were never told about owing council tax during the disputed period.
Can the PFD or other housing benefit disputes lead to council tax issues?
Yes, incorrect benefit data can affect council tax reductions. If benefits are miscalculated or delayed, it can trigger unexpected tax bills.
