Households are facing the biggest fall in disposable income for three decades, according to the Bank of England.
In response to rocketing costs of food, fuel and other essentials, the government promised the council tax rebate to households in bands A – D among other measures.
Taxpayers were originally under the impression that they would receive the money this month but Sheffield Council said it will be May at the earliest.
Tim Hardie, head of revenue and benefits at the council, said: “Sheffield City Council has not yet issued council tax rebates to residents.
“To minimise the risk of fraudulent applications, the council is taking the first payment of direct debit to ensure it clears before paying the rebate.
“Therefore, with those first payments being paid in April, the earliest date the rebate could be paid is May. The council hopes to begin making direct debit payments and issuing Post Office vouchers from May.”
The council added that the government advised ensuring direct debit payments have cleared before issuing the money.
How will the council tax rebate be paid?
Taxpayers using direct debit will get the payment automatically if they live in an eligible property.
You can check your council tax band here: https://www.sheffield.gov.uk/home/council-tax/check-council-tax-band
Those who pay in other ways will be contacted by the council to arrange a method for receiving the funds. The council said it is working to start these payments in May as well.
Government said claims for the rebate can be processed up until September 30.
Delays to payments were reported across the country by Money Saving Expert.
It said South Derbyshire Council sent a letter to 39,000 people telling them payments would not be made until “at least June” due to software issues.
It added that Portsmouth City Council told local residents they would not receive the money until September.