Southend Council Refunds £2.3m Overcharged Care Fees Since 2018

Southend-on-Sea City Council has acknowledged a technical error dating back to 2018 that led to the overcharging of 586 residents for various types of care, including in-home, supported living, shared lives, extra care, and day care. The error occurred due to incorrect configuration of new software, which failed to factor in Disability Premiums and Carer Premiums when calculating individuals' Minimum Income Guarantee, protected under the Care Act 2014. As a result, some people receiving benefits such as Personal Independence Payments and Disability Living Allowance were overcharged, with refunds totaling approximately £2.3 million being issued. The council has contacted all affected individuals, offering refunds or the option to apply overpayments toward future care fees. Council leader Daniel Cowan apologized for the mistake and confirmed that a dedicated team has reviewed each case to ensure fair compensation and has implemented measures to prevent recurrence. The council emphasized that the issue was isolated to care outside residential and nursing home settings.