Money Saving Expert founder Martin Lewis has issued an urgent warning to UK households about six secret council tax traps that could be costing families hundreds or even thousands of pounds each year.
The Six Costly Council Tax Pitfalls You Need to Know
During his latest appearance on ITV's The Martin Lewis Money Show, the consumer champion revealed several common but little-known council tax errors that could be hitting your finances hard.
1. The Wrong Band Blunder
"Hundreds of thousands of homes are in the wrong council tax band," Lewis revealed. "If you're in too high a band, you could be owed thousands in back payments."
2. The Empty Property Penalty
Many people don't realise that empty properties or second homes can qualify for significant discounts - but you have to apply for them.
3. The Single Person Discount Oversight
If you live alone, you're entitled to a 25% reduction on your council tax bill. Yet many eligible people forget to claim this valuable discount.
4. The Student Exemption Error
Full-time students living alone or with other students should be completely exempt from council tax, but some are still being incorrectly billed.
5. The Disability Reduction Blind Spot
Households where someone with a disability needs extra space or special facilities may qualify for a reduction to a lower band.
6. The Challenge Fear Factor
Many people worry that challenging their council tax band could lead to neighbours' bills increasing, but Lewis explains the reality of how the system works.
How to Check and Challenge Your Council Tax Band
Martin Lewis outlined his step-by-step process for checking if you're in the wrong band:
- Check what band your neighbours are in using the government's valuation office website
- Work out what your property was worth in 1991 when bands were set
- If you suspect an error, you can challenge your band through the official channels
"The key thing to remember is that if you successfully challenge your band, you could get backdated refunds going back to when you moved into the property," Lewis explained.
Who Could Be Missing Out on Discounts?
The money expert highlighted several groups who frequently miss out on legitimate reductions:
- People living alone (25% discount)
- Students and student households (full exemption)
- Those with severe mental impairments (exemptions or discounts)
- People on low incomes or benefits (council tax support)
- Households with disability adaptations (band reduction)
Martin Lewis urged viewers: "Don't assume your council tax band is correct. Thousands of people have successfully challenged theirs and received substantial refunds. It's worth spending half an hour to check - it could put thousands of pounds back in your pocket."
