Martin Lewis check to cut £1,500 off your Council Tax bill as two million benefit claimants miss out
by William Morgan, Linda Howard · ChronicleLiveIn his latest effort to support households in slashing their Council Tax bills, Martin Lewis has shone a light on potential savings during a special segment of The Martin Lewis Money Show. Dedicating a substantial part of the episode to Council Tax savings strategies, the renowned money-saving expert outlined numerous scenarios where viewers might be eligible for discounts, rebates, or lower payments.
Those who suspect they may be categorised in the wrong Council Tax band were provided with a thorough "check and challenge" system in the latest MoneySavingExpert newsletter penned by Lewis. Yet he also highlighted an estimated 2.25 million people on benefits who are missing out on potential annual Council Tax savings that could reach £1,500.
Utilising a straightforward graphic, Lewis underscored that "your full Council Tax bill is based on two or more adults living in the property," underscoring possible reductions when lesser adults reside within a dwelling. .
He pointed out to the audience that anyone over 18 years old is considered in the calculation of the bill, as noted by the Daily Record. However, particular exclusions apply, such as individuals under 18, students in full-time education lasting at least one academic year, or those with severe mental impairments including dementia, Alzheimer's, and Parkinson's disease – all present opportunities for discounted Council Tax rates.
Lewis reassured individuals living alone that they are entitled to a 25 per cent discount on their annual Council Tax, before moving on to what he called the "big one.", reports the Manchester Evening News.
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He pointed out that Council Tax support, which could be worth up to £1,500 a year, is potentially being missed by around 2.25 million people. Martin explained: "It's run council by council and it's for people on low incomes and it can cut your Council Tax bill - in some cases - up to 100 per cent, but even if not, 50 per cent is still a lot. It often applies to people on means-tested benefits such as Universal Credit and Pension Credit."
He noted that those on these benefits often mistakenly think they'll automatically get "everything that's coming to them" but this isn't the case.
"Council Tax benefit, even if you're on Universal Credit, you must apply separately to your council to get it and that is why so many are missing out," Martin warned. He also advised: "If you are on a lower income, look at your council's policy and see if you can apply to get this money - it's crucially important."
Martin added that individuals who have had to modify their home due to someone with a disability might be eligible for a reduction in their Council Tax band.
The amount of Council Tax you pay is determined by your local authority, which sets an overall sum each year and assigns a 'band' to your home, based on its value. However, it isn't banded by its current market value, but rather the value on April 1, 1991 - the date Council Tax was introduced.
It's been highlighted that the band valuation has not been updated in Scotland and England since then, leading to concerns that "so many people may well be in the wrong band".
Martin Lewis then outlined two checks to help determine if you're in the incorrect council tax band - the neighbours check and the valuation check. The neighbours check involves comparing your house to similar or ideally identical properties nearby to see if you're in a higher band.
Before challenging your local council, Martin emphasised the importance of these checks. He also cautioned against starting the challenge process unless both checks suggest you're in the wrong band.
For a comprehensive guide on how to challenge your Council Tax band, as well as information on discounts and reductions available, visit MSE.com. Additionally, you can catch up with The Martin Lewis Show on the STV Player.
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