Money saving guru Martin Lewis has issued an urgent alert to millions of UK households who could be sitting on thousands of pounds in unclaimed council tax refunds. The founder of MoneySavingExpert.com revealed that simple errors in property banding could mean families have been overpaying for decades.
The Council Tax Mistake Costing Families Thousands
During a special segment on ITV's Good Morning Britain, Lewis explained that many properties across England and Scotland were incorrectly banded when the council tax system was introduced in 1991. "This is one of the biggest mass reclaims out there," Lewis emphasised. "People have had thousands, even tens of thousands returned."
How to Check If You're Owed Money
The process to verify if you're in the wrong band is surprisingly straightforward:
- Check your neighbours: Compare your band with similar or identical properties on your street
- Research 1991 values: Find out what your property would have been worth when the system launched
- Challenge through the Valuation Office Agency: If evidence suggests you're in the wrong band
"The key is you need to be sure you're in too high a band compared to neighbours," Lewis cautioned. "Don't do it speculatively as you could end up increasing your band and your bill."
Success Stories That Will Shock You
Lewis shared remarkable examples where homeowners received life-changing refunds. One viewer discovered they'd overpaid by £1,700 annually for years, resulting in a £17,000 rebate. Another family received a staggering £48,000 refund after challenging their banding.
"This isn't new money," Lewis noted, "this is your money that you shouldn't have paid in the first place. It's about getting back what's rightfully yours."
Why Now Is the Perfect Time to Check
With council tax bills rising significantly this April, ensuring you're in the correct band has never been more important. Many households are facing increases of hundreds of pounds, making it crucial to verify you're not already overpaying.
The MSE website offers comprehensive guides and tools to help homeowners navigate the checking process safely, ensuring they don't accidentally increase their bills while seeking justice.
