Ministers have asked a group of experts to consider a range of "redress" schemes for families left frustrated at poor council services, such as collecting rubbish bins.

Compensation could include free sports centre passes, cash payments or vouchers to spend in high street shops.

Tenants who are kept waiting for a home repair could get £10, plus £2 a day for every day workmen fail to turn up, under one idea.

Communities Secretary Hazel Blears is taking action after research revealed that 20 per cent of adults complain to their council each year.

Only 34 per cent of those who contacted their council in the last year were satisfied with the way their complaint was handled.

Ms Blears said: "Councils need to put people at the heart of service delivery, and take complaints seriously.

"Where things go wrong, people should be able to expect swift and fair redress.

"Getting this approach right should also help ensure that there is less need for redress going forward."

A review team including experts from supermarket giant Tesco and the National Consumer Council will look at various redress schemes which run in the private and public sector.

It will make recommendations to the Government by early next year.

A Government White Paper released earlier this year highlighted the example of a housing association in Dorset which handed out £50 in shopping vouchers for any distress caused.

Another housing association links cash payments to how many days late council house repairs are.

The Government admits that the amount of financial redress is likely to be a "token" but "they are a reminder of who matters most in the transaction: the citizen".

David North, Community and Government Director at Tesco, said: "People have every right to expect good customer care in the wide range of services provided by their local authorities, and we are happy to share our experience."

But Tory local government spokesman Eric Pickles said: "It is laughable that under Labour if you put rubbish out on the wrong day you are hit with a £100 fine yet now the Government wants to offer you £10 compensation if your rubbish isn't collected on time.

"Labour are obsessed with meaningless electoral bribes such as free doughnuts for those who vote, which clearly fail to tackle the huge democratic deficit they've created."

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