Thousands have £150 taken OUT of their bank account in council tax rebate error

THOUSANDS of billpayers are having £150 taken from bank accounts after a council tax rebate error.

Millions of households are getting the cash back to help with the cost of living crisis.

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But around 25,000 residents in Leeds have been paid the council tax rebate twice by accident after the payments were processed “incorrectly”.

Leeds council has apologised for any “confusion or inconvenience” and is now trying to clawback the extra payments.

It has warned those affected to be aware that the overpayment will be recovered and to check their bank accounts.

A council spokesperson said: “We are aware that a significant number (25,000) of council tax rebate payments have been duplicated, meaning some residents have received the payment twice.

“This is due to a process error where the same payment file was incorrectly processed twice after it was initially rejected by the bank. We are working with our bank to recover the duplicate payments so that the situation can be rectified as soon as possible.

Around 120,000 correct payments have already been made to eligible residents in the area, the council added.

The government announced the help in February to help cover the extra cost of energy bills, which have shot up by hundreds of pounds.

Payments started from April 1 and local councils are running the scheme.

Each council will have different systems and the scheme is new, and some areas have struggled to get the payments out.

For instance in South Derbyshire residents have been told payments won’t start until June at the earliest while it waits for software updates.

Meanwhile thousands of people who don’t pay their bills by direct debit face a longer wait for the cash.

Councils will be writing to these residents inviting them to apply for the rebate but many have not started doing this yet.

The £150 payments are being made to those eligible, which is around four in five households in bands A-D for Council Tax.

One-off payments are being made, rather than a discount on your usual council tax bill.

The cash is being dished out at different times, according to where you live and how quickly your local authority can make payments.

Payments have already been made to lucky locals in places like Sunderland, Bracknell and East Hampshire.

You can check your local council’s website and social media pages for the latest updates on when you will get the cash.

A separate £144million fund has also been launched which local councils can dish out to vulnerable and low income households.

You can find out which band you’re in to see if you’re eligible for the automatic scheme, or need to apply to the fund by using the government’s search tool – you just need to enter your postcode.

There are also some exemptions to those in A-D bands, for example if you don’t live in the home.

You could challenge your council tax band if you think it’s wrong, so you don’t miss out on the cash.

But beware a revaluation of your band could put you in a lower band where you pay MORE council tax, so consider the risks.

If you are on a low income or receiving benefits, you could eligible for a reduction on your Council Tax bill through a separate scheme.

This post first appeared on thesun.co.uk