Leeds City Council is seeking almost £4million back from residents after accidentally paying households the mandatory council tax rebate twice.
An error in the processing of the payments meant some 25,000 people received double the £150 amount they were owed.
The council is now looking to recover the £3.75million total it should not have paid out.
In a statement online, the council 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.
Are you a Leeds council resident affected by this? Get in touch: mirror.money.saving@mirror.co.uk
"We would advise residents to check relevant accounts and bear in mind that duplicate payments will be recovered.
"We would like to apologise for any confusion or inconvenience the duplicate payments may have caused. Our officers have worked hard to ensure residents receive the £150 rebate as quickly as possible, and 120,000 payments have been made correctly."
The post has been inundated with comments from confused residents, many of whom claimed they have not yet received any payment.
Rea Bea wrote: "Some people have received 2 payments yet I've not received one."
McCreesh PJ agreed: "The first payment would be nice never mind second one." And Holly Rooney added: "I haven't even received my rebate and it was due last week."
One resident also said she received a duplicate payment but was not told how to return it when she asked.
Helena Sykes said: "I received a duplicate payment today and called to let them know, but they said they didn't know how I could return the money, will it be collected automatically or will we receive a separate bill and instructions how to pay it back?"
Council tax rebates worth £150 are starting to be paid into bank accounts up and down the country from this month under a Tory pledge to help households battle a cost of living crisis.
But while Leeds council has incorrectly paid some tens of thousands of households, many residents in parts of the country are still waiting for the rebate - 28 days on.
For many, it could take until September 30 to receive the refund.
Those who pay their council tax by Direct Debit will receive the payments first, as councils have their details on the system already.
Martyn James of consumer rights website Resolver said: “The current advice is to go on to your local council website where there should be some updates.
“I’ve checked quite a few and there’s a distinct lack of information with some so don’t worry if the site hasn’t updated yet.
“Many councils are asking people not to contact them to ask about the rebate.
“But you can contact your council for help and support with financial difficulties if you are worried about paying the tax.”
South Derbyshire District Council isn't expecting to pay out the £150 rebates until "early June 2022" our research found.
The local authority says it is still waiting for payment software from a supplier, which is due to arrive in late April.
Hastings Borough Council, South Lakeland District Council and Halton Borough Council all said households should receive their £150 rebate by the end of May.
In North Tyneside, residents should start to be paid from early May.
See the full list of councils that are behind on the council tax rebate, here.
