A man given "misleading information" about his birth family was one of a number of people who had to be compensated by Merton Council last year.

The individual was given £2,000 to refund fees and counselling costs resulting from the mistake by the children and family services department.

Cases of noise pollution and planning mistakes also led to payouts to residents, totalling about £20,000, according to the annual report by the Local Government Ombudsman (LGO), an independent watchdog that receives complaints about councils.

The LGO made decisions on 95 complaints from Merton residents between April 2007 and March 2008, 22 of which warranted an investigation. Of these cases, 19 were then settled by council action while an investigation was under way.

The three that were not resolved related to the same planning mistake, which caused noise problems for residents. The LGO said: "The council had accepted inaccurate site plans and later delayed in taking enforcement action when it was established that the building varied significantly from the approved plans. The council's response to the formal complaints was poor and slow."

The council later accepted the findings, apologised and paid compensation totalling £2,500.

In another incident a resident was told that if he cleared an area of council owned land that had been fly-tipped, he could incorporate it into his garden.

However, the council then claimed the land back as their own. After the resident contacted the LGO the land was returned to him.

The Ombudsman praised the council for handling most complaints well and applauded "some proactive and helpful responses" which resulted in speedy resolutions.

Seventy-three complaints were not investigated, either because there was no mistake by the council or the complaint was invalid.

Deputy council leader Samantha George said the council was proud of having few findings of maladministration from the LGO and would take the report on board.

"Any complaint upheld is to be regretted, but we believe that we have a highly effective complaints policy and process in place which was only reviewed recently, in 2006," she added. "We actively invite complaints and seek to learn from them. That is one of the ways that we are becoming a fitter, faster and more focussed organisation."