Thousands told to REPAY £150 council tax rebate after payment error

THOUSANDS of households have been told they have to repay the £150 council tax energy rebate after a payment error.

Around 3,000 households in North Lincolnshire have received the cash in their bank accounts.

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But they are not eligible for the support as they are in council tax band E.

Households who are in council tax bands A-D are eligible for the cash.

The £150 council tax rebate is designed to help with the rising cost of energy bills and was announced by the government in February this year.

The one-off payments are being handed out by councils from April onwards, though many are still waiting for the money.

They get it automatically if they have a direct debit set up for council tax bill payments, and the cash goes into the billpayer’s bank account directly.

Those in council tax band E are not eligible for this – but may be able to apply for the same amount of cash under a separate discretionary scheme.

North Lincolnshire council has apologised for the error and has contacted those affected.

According to one resident who received the letter about the payment error, the £150 will be taken by direct debit from bank accounts on July 4.

The wrong payments were made in error last week on June 9.

A council spokesperson said: “Due to a processing error a number of households in Band E properties not eligible for the £150 energy rebate received it.

“We have contacted these people directly to explain the situation, detail how the money is to be recovered and apologise for any inconvenience caused.”

North Lincolnshire residents are not the only ones to be affected by council tax energy rebate payment errors.

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

More than 33,000 residents in Swale, Kent were affected by an error processing payments in May.

Those eligible for the council tax energy rebate saw both a debit and a credit appear on their bank account “due to an error processing the planned payments” – the the debit was not taken from people’s accounts.

Councils have struggled to make payments of the £150 lump sum, with clunky IT systems to blame along with time to verify eligbelilty.

Payments started from April 1 but some local authorities have said that payments won’t start until JUNE because of software updates required to send the rebate.

Fresh help for households struggling in the cost of living crisis will not come via local councils.

The government last month set out plans for extra one-off cost of living payments including £650 for those on means-tested benefits, £400 for energy billpayers and £300 more for pensioners.

When will my £150 council tax rebate be paid?

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

But some have to wait longer as councils work through processing the payments.

When you get your £150 rebate depends on where you live.

Each council will have different systems, dates can vary, and the scheme is new.

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

If you have a direct debit set up to make council tax bill payments you’re likely to get yours earlier than if you pay manually.

If you’re eligible for the rebate but you don’t pay a bill and need to apply you should keep an eye out for a letter.

This could also be the case if you pay your bill manually and the council don’t have bank details on record for you.

Your council will be in touch telling you how to apply for the £150.

But beware of scams where criminals are asking for bank details via text, email or call claiming this is how you get the rebate.

Experts have warned about the red flags to look out for so you don’t lose cash.

If you’re not eligible for the one-off payment you should check whether you qualify for any other help.

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 be eligible for a reduction on your Council Tax bill through a separate scheme.

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

Some councils like Camden have opened applications for the cash worth up to £150.

And the most hard-up families struggling with bills could be eligible for EXTRA payments on top of £150.

This post first appeared on thesun.co.uk