Money Saving Expert Martin Lewis has issued urgent advice that could save thousands of households across Britain significant money on their council tax bills. The financial guru revealed that many properties are in the wrong council tax band, meaning residents could be overpaying by hundreds of pounds annually.
The Council Tax Band Mistake Costing Brits Millions
During his popular ITV show, The Martin Lewis Money Show Live, the consumer champion explained that council tax bands in England and Scotland were originally set in 1991 based on property values from April 1991, while Wales used 2003 values. "Many were assigned the wrong band," Lewis revealed, "meaning you could be paying hundreds of pounds more than you should."
How to Check If You're Overpaying
Lewis outlined a simple two-step process to determine if you might be in the wrong band:
- Check your neighbours' bands: Compare your council tax band with similar properties on your street. If identical homes are in lower bands, you might have a case.
- The valuation check: Discover what your property was worth in 1991 (for England and Scotland) or 2003 (for Wales) to see if it aligns with your current band.
"If both checks suggest you're in too high a band," Lewis advised, "then you can consider submitting a challenge."
Important Warning Before You Challenge
The money expert included a crucial caution: "Beware - your band could go down, but it could also go up." This means that while you might secure a reduction, there's also a risk your band could be increased, resulting in higher payments.
Lewis emphasised that you should only proceed with a challenge if you're confident based on both checks that you're genuinely in the wrong band.
Potential Savings for Households
For those successfully challenging their band, the savings can be substantial. Moving down just one band could save households between £200-£400 annually, depending on their local council tax rates. Successful challenges also typically result in backdated refunds, potentially worth thousands of pounds for some homeowners.
The consumer champion's advice comes at a crucial time when many families are struggling with the cost of living crisis and looking for legitimate ways to reduce their essential bills.
