Council Tax Rebate

[Treena]

At the end of last year I was out of work, much to my amazement I had a letter from my Council telling me i was due a rebate on my Council tax of £124. I rang them and queried it and was told that that was what was due to me and to go out and spend it..?!!

I am now back in work and have had a letter from them demanding £91.45 back. When I rang them I was told it was because i had gone back to work and that they had over estimated how much I was due back. Do I have to pay them back as it was their mistake and I had rung them and checked?

Also If I refuse to pay it back, can they add it to my next years bill?

Very many thanks

Treena

[Buenchico]

It's a criminal offence (under Section 5(4) of the Theft Act 1968) not to return property (including money) which you have acquired through the mistake of another, where there's an obligation to do so (which there clearly is here). So, yes, you've got to return it.

Yes, they can add it to next year's bill, but they'll probably treat it as a separate bill. Unlike most unpaid bills (which are purely civil matters), failure to pay Council Tax can lead to criminal proceedings. (i.e. there are two different criminal laws which you could fall foul of if you don't repay the money).

You're situation isn't uncommon. I've been waiting for a Council Tax bill of around £30 for several months (covering a period when I was temporarily 'signed off' JSA, and not eligible for council Tax Benefit, which I normally receive in full). However I recently received a 'refund' of nearly £150 instead of the bill I was expecting. I keeping quiet about it for now, but I expect that they'll demand it back again eventually!

Chris

[tonywiltshire]

I am assuming when you were out of work you claimed council tax benefit and the LA was slow in realising that you were back in work and as such continued to pay your Council tax when your income was in excess of your applicable amount.
This is no different to your bank intending to give you £1 and giving you £1 million in error, as Chris says you are unfortunately required to pay it back despite it being their error, and if you do not it will be added to your next years bill and they may not then let you make monthly payments of CT.

[wolf63]

Could it not be considered to be an official error? I know that with DWP they don't pursue official errors. However I have been 'retired' from that awful place for a few years now ;-)

[buildersmate]

But it is not an official error - it was a correct assumption that is now incorrect because of a change in your financial circumstances.