MoneySavingExpert (MSE), founded by Martin Lewis, has urged UK households to check whether they are owed a council tax refund. The call comes after Andy Burnham became Prime Minister, bringing the issue back into the spotlight.
Reform on the agenda, but no immediate scrapping
In its weekly newsletter, MSE said that with the new PM in place, reform is back on the agenda, as Burnham has described the system as unfair. However, MSE noted that he has ruled out scrapping it in the near term, so checking your status under the current system should be a "priority" for households.
The focus is on whether you are paying the correct amount. MSE said that hundreds of thousands of people could be paying too much, potentially saving hundreds or thousands of pounds a year.
How to check if you're paying too much council tax
MSE advises starting by checking your home's council tax band, which ranges from A to H, based on 1991 valuations in England and Scotland. The organisation says: "Martin first developed our Council Tax check & challenge system in 2007 and we've refined and improved it since then - over the years we've had 10,000s of successes, meaning people not only get their band lowered and pay less each year, they get a backdated refund too."
There are three steps: first, check against homes nearby using the free neighbours check. Second, estimate your home's 1991 value with the valuation check. Third, only challenge if both checks suggest your band might be too high. MSE warns: "Just one check leaves a risk that it could be your neighbours are in too low a band - and theirs is upped. Follow our detailed how to challenge your band help. For those in England & Wales, this crucially includes getting your free Property Attribute Data (PAD) from the Valuation Office."
Who qualifies for a council tax discount
MSE also highlighted that "countless people" miss out on council tax discounts. Key discounts include a 25% reduction for single occupants, zero council tax for student-only households, 50% off for those with live-in carers, up to 100% reductions for people on benefits, and exemptions for the terminally ill in some councils.
Properties adapted for a disability may qualify for a lower band, and those with a severe mental impairment (such as Alzheimer's or a stroke) who are eligible for benefits could also get a discount.
Finally, MSE reminded that those who moved home since 1993 could be owed £100 or more. It said: "Many people pay Council Tax in advance, so if you move to another council area part way through the year, you could be in credit - and entitled to that money back. See how to claim in our Council Tax overpayments guide."
