Gloucestershire County Council was forced to pay £2,000 to a child with special educational needs after failing to provide education for him.
The authority also had to pay £300 to his mother for stress caused by events.
The Local Government Ombudsman found the child, named N, has an education health and care plan (EHC), and is autistic with associated learning difficulties.
The watchdog said the child’s mother, named Mrs M, complained the county council failed to put in place alternative educational provision when she kept her son out of school for more than three months.
It added that there is evidence of fault and the county council had been asked to apologise, make a payment and change its procedures.
Mrs M removed her child from school after N alleged he had been “assaulted by a teacher”. A police investigation however found the was no criminal intent.
The authority said it “actively worked the family to reintegrate the pupil” and gave extra money for extra support when N returned to school.
The Local Government Ombudsman announced its conclusion on October 19, 2018.