Hi Wirralguy
I'm sorry - but housing issues are outside the remit of this forum and I don't have any knowledge in this area. I can tell you that the same things happened to a friend of mine (in a different area of the country) as the government and the council systems did not match up. She was told that many people have gone into arrears. Now she was able to pay it herself to wipe off the arrears before her rent to the council was paid - but not everyone is in that position. You need to talk to the council about it.
BIS
Nothing on this board constitutes legal advice - always consult a professional about specific problems