Thousands of people have been warned they could miss out on the £150 council tax rebate.
The rebate is being given to households who sit within council tax bands A-D in order to help with the ongoing cost-of-living crisis.
But some, who are eligible for the money, may not be able to use this funding to pay for essential bills because they are in their overdraft.
The money will pay be paid into their accounts but will instead be automatically used to pay off their debt.
Councils across the country are urging people to ask their banks to make the funds available.
Some households have already received their council tax rebate
Joe Giddens
Westminster council has told its residents: "If you are overdrawn, you can exercise your first right of appropriation on the £150 payment, so that your bank doesn’t use it to pay off your overdraft."
While people living in Castlepoint, Three Rivers and East Riding are among those being advised to do the same.
Some have already received their council tax bonuses, while others will begin to see the £150 hit their accounts later this week.
The rebate is being given to some households during the cost-of-living crisis
Peter Byrne
Residents in Reading who pay their council tax by direct debit are to begin receiving their rebates this week.
While Teignbridge District Council is currently making payments in bathes and is hoping to complete all payments for those who pay their tax via direct debit by the end of May.
High Peak Borough Council began making payments to those who pay council tax by direct debit, adding that they will write to customers who pay by other means about when they should expect the rebate.
Some residents living in Gloucester may have already received their rebate if they had paid the council tax by direct debit on April 1, while those who paid on April 15 will receive the bonus this week.
Staffordshire Moorlands residents who paid via direct debit began to receive their rebates yesterday and those in Rossendale who paid using the same method will begin to see the bonus hit their accounts from Tuesday.
Southend-on-Sea cancelled said it processed the payment to 42,802 households with direct debit, adding that customers should receive the money from Wednesday.
Residents in West Berkshire may have also received the bonus, while a further 10,000 residents will get the money this week.
