That does sound harsh Eileen, maybe worth double checking perhaps..
What's this Bereavement allowance you mentioned ? didn't know there was such a thing, though tbh I may not have been eligible anyway of course.
However they did generously increase my state pension a few pounds, but if I had to rely on that...the car would have to go for a start...lol. My council tax alone is 1475 a year, though they have since applied the 25% single occupancy discount....to be 100% fair shouldn't that really be 50%, it's crazy how the system works. One things for sure, in your case it's certainly something you can do without Eileen, it's no small sum either to repay back, they should have taken the tax off.
Not good receiving a bill for £500 especially so near to Xmas, if it turns out to be correct Eileen can they not increase the tax you pay each week and recoup it that way....over a period of time, that's what they did many years ago, you sure they haven't made a mistake.?