Money saving guru Martin Lewis has issued an urgent alert to 1.7 million UK households who could be sitting on unexpected windfalls of up to £5,000. The financial expert warns that countless families may be paying too much council tax and could be owed substantial refunds.
Are You Paying Too Much?
During his latest podcast, the founder of MoneySavingExpert.com revealed that approximately 1.7 million properties across England and Scotland are potentially in the wrong council tax band. This administrative error could mean thousands of households are systematically overpaying their local authorities.
How to Check Your Banding
Lewis outlined a simple three-step process to determine if you might be due a refund:
- Compare with neighbours - Check your band against similar properties on your street
- 1991 valuation assessment - Estimate what your property would have been worth in 1991
- Challenge through VOA - Submit a formal challenge to the Valuation Office Agency
"This is one of the biggest reclaims around," Lewis emphasised. "If you're in the wrong band, you're not just due money back dating to when you moved in - it could be back to when the band was set."
Substantial Refunds Possible
Successful claimants could receive significant repayments, with some households receiving between £2,000-£5,000 in backdated refunds. Additionally, future council tax bills would be reduced to the correct amount, providing ongoing savings.
Proceed with Caution
However, Martin Lewis issued an important warning: challenging your band could potentially result in your band being increased rather than decreased, though this outcome is relatively rare. The Money Saving Expert advised thorough research before submitting any formal challenge.
The revelation comes as many families continue to struggle with the cost of living crisis, making potential refunds particularly valuable for household budgets across the country.
