The Forest of Dean District Council in Gloucestershire is considering ending its contract with its third-party payment provider after a serious error resulted in more than 17,000 residents being double-charged for council tax and business rates.
At the end of August, a technical fault caused payments to be debited twice from bank accounts. Following a thorough investigation by a council scrutiny group, it was concluded that neither council staff nor Publica, the company responsible for providing council services, were at fault. The error originated from the third-party supplier’s payment system.
The investigation revealed that during a recent system upgrade, dated payment processes that should have been permanently archived were mistakenly reactivated alongside the new processes. This led to duplicate direct debit requests being generated. Additionally, the banking failsafe mechanisms failed to detect the issue at the time. Both the third-party supplier and the bank have since issued formal apologies and implemented measures to prevent future recurrence.
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Despite these corrective actions, the council acknowledged shortcomings in its communication strategy. Many residents learned of the problem through social media rather than receiving direct notification from the council. Councillors expressed regret over this lack of proactive communication and vowed to improve their emergency response communications going forward.
Residents affected by the double charges have largely been refunded, with the council’s chief financial officer confirming that reimbursements and bank compensations for any overdraft fees have been processed. He invited anyone still experiencing issues to contact him directly.
The council’s finance cabinet member has requested that officers and Publica explore alternative banking providers and review the current service to determine if a change is necessary. He also expressed gratitude to the teams who resolved the incident quickly and thanked residents for their understanding.
While the council reassures residents that paying council tax and business rates by direct debit remains safe and reliable, this incident serves as a crucial reminder of the importance of robust payment systems and transparent communication.