Hundreds of hard-up families could have overpaid their council tax by thousands after a council blunder – but they will have to claim it back themselves.

The people affected were in receipt of Universal Credit and were also eligible for childcare costs which were wrongly taken into account, against the strict wording of the council’s own council tax reduction scheme (CTRS) policy.

Claims go back to 2017/18 financial year and add up in total to £97,000 for 677 people.

However, according to a report to Trafford council’s executive which met on Monday (November 27), it will be up to the affected residents to submit a request for reassessment and ‘restitution’.

The affected residents will not receive cash back, but their council tax accounts will be credited for the next time they are billed.

A  report to the executive said: “It will be a matter for the individual claimant to apply for reassessment of their claim if they choose to do so.”

Each year, about 13,000 residents receive support through the CTRS with the annual cost estimated at £13.9million.

Each CTRS award is based on an individual’s household, including the number of adults, children, tenure type, any disabilities or caring roles, and financial circumstances.

The report said the council would ensure that ‘invitation to claim letters’ would include an offer of support from the council’s Welfare Rights Team and there would be ‘signposting’ to other agencies for independent advice and support in relation to submitting a claim for reassessment.

There is also a warning that if residents do make an application for reassessment, it is possible that their council tax relief entitlement could actually be reduced.

Following the reassessment process, the council tax support will be reset at the correct level.

The report indicated that there would be no cash repayment, saying: “It is important to note that the figures are not an indication of how much an individual claimant will receive in monetary value as council tax support awards are to help towards paying for council tax and so operate on an account credit or debit basis.”

It added that in the case of claimants who do not take up the invitation to apply for reassessment, their entitlement may also be subject to review at a later date in line with ‘existing operational practice’ and ‘good housekeeping’ measures.