Council acts over admin 'cock up'

A council contractor which wrongly sent hundreds of pensioners demands for overpayments of as little as 3p has been penalised.

Sheffield City Council said it would deduct "a substantial sum" from contractors Liberata over the blunder, blamed on an administrative "cock up".

The money deducted will be re-invested into services for the elderly, the authority said.

Liberata previously sent letters of apology to all 785 people affected.

'Service failure'

The company, which handles a number of council services including benefits and council tax, also made a donation of £1,000 to Age Concern.

But following an investigation by the city council, the authority concluded Liberata breached its contractual obligations and would be made subject to a fee deduction to compensate for the error.

The council said it could not make public the amount to be deducted due to contract confidentiality.

Assistant head of finance for the authority, Andy Dolling, said: "I will be deducting a substantial sum from Liberata's next fee payment.

"This sum reflects the implications of the service failure for both the council and our customers."