Martin Lewis has shared tips that could help households save thousands of pounds on council tax through three little-known methods. The money expert's advice comes as council tax bills are set to rise across England and Wales in April 2026 by the maximum amount.
One key method is challenging your property's council tax band. Official figures from the Valuation Office Agency show that of 43,820 people who requested a revaluation in 2023/24, nearly 1,000 lowered their band by two places or more. Lewis's MoneySavingExpert estimates around 400,000 households are in the wrong band and could be overpaying. A successful challenge can lead to lower bills and potentially a backdated payout. Lewis noted one viewer saved “just short of £6,000,” adding that £10,000 to £12,000 savings are not uncommon.
However, revaluations are based on 1991 property values, not current prices. The Valuation Office Agency may place a property in a higher band if it believes the value has increased since last checked. In rare cases, a revaluation could also raise bands for neighbouring properties.
Discounts are another way to reduce bills. Those living alone can claim a 25% discount. Student households and adults with severe mental impairment are eligible for 100% discounts, while live-in carers for such adults get 50% off. Councils also offer discretionary reductions for those facing severe hardship, with eligibility varying by area.
Finally, households can reclaim overpaid council tax. MoneySavingExpert reports £141 million is owed to taxpayers across 349 local authority areas in England, Scotland and Wales, affecting over 800,000 households. Overpayments can occur when moving house, cancelling a payment, or after a property is rebanded, entitling the former resident to a retrospective discount. Claims can be made via online forms, email, or phone, depending on the council.
