Martin Lewis fan secures £20,000 refund from little-known advice

Paul, who is a Martin Lewis fan, sent a message to the Money Saving Expert after finding out his family were owed a discount on their council tax bills

A follower of Martin Lewis has revealed how a tip from the financial guru helped them secure a £20,000 refund. In the latest MoneySavingExpert (MSE) newsletter, a reader named Paul explained how he discovered he was eligible for a discount on his council tax bill.

He had read MSE's advice about how those with severe mental impairment (SMI) can receive a reduction on their council tax payments. The SMI council tax discount offers at least a 25% reduction on a household's council tax bill.

A person is deemed severely mentally impaired if they have a significant impairment of intelligence and social functioning that appears to be permanent. This could include individuals suffering from Alzheimer's disease, Parkinson's, stroke and similar illnesses.

Read more: Martin Lewis Tax Credits warning

Given the wide range of illnesses or impairments that could qualify, it's believed that hundreds of thousands are missing out on the SMI discount. In some cases, an SMI discount could even wipe out the entire bill.

Paul contacted MSE after discovering his family were due a discount because his son, who lives with cerebral palsy, and he and his wife, both live-in carers, qualified for a council tax discount. He said: "We've just received an email from our council, confirming a refund of £19,593. This is backdated to May 2007 - the year of our son's 18th birthday."

According to MSE, it's thought that thousands of people are missing out on the SMI council tax discount.

Households are encouraged to check online to see if they qualify for council tax discounts, but it's important to note that these may vary from council to council.

The condition must have been diagnosed by a medical professional.

The amount of Severe Mental Impairment (SMI) discount you can receive depends on who else lives in your household.

Council tax is discounted based on the number of qualifying adults living in a property.

If you have an SMI, you're not considered a qualifying adult - this is similar to full-time students and those under 18.

Depending on your living situation, if you have an SMI, the following applies:.

If you live alone with an SMI - your house gets a 100% council tax discount.

If you live with an adult carer and have an SMI - you get a 50% council tax discount.

If you live with one other qualifying adult and have an SMI - you get a single person reduction of 25% discount.

If you live with two or more qualifying adults and have an SMI - there is no discount.