Martin Lewis says 2 million people could save up to £1500 on their Council Tax

MoneySavingExpert founder, Martin Lewis has once again gone the extra mile in helping people all over the UK slash their Council Tax bills. The financial whizz dedicated most of an episode of The Martin Lewis Money Show on STV to revealing various ways people could claim discounts, get reductions, or even secure refunds on their Council Tax.

Lewis's latest newsletter features a comprehensive "check and challenge" system for anyone who thinks they might be in the wrong Council Tax band. Significantly, Lewis highlighted that there are around 2.25 million benefits recipients missing out on potential yearly Council Tax savings of up to £1,500.

Armed with a straightforward graphic, Lewis emphasized that "your full Council Tax bill is based on two or more adults living in the property," pointing out that if this situation does not apply because of various legitimate reasons, individuals might be entitled to a reduced bill. He pointed out to his audience that all adults over 18 are factored into the calculation of the bill.

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He detailed certain exceptions, including those below 18, students engaged in full-time education for more than one academic year, or those living with significant mental impairments like dementia, Alzheimer's, or Parkinson's can be exempt from Council Tax, potentially qualifying them for discounts, reports the Daily Record.

Lewis reassured individuals living alone of their entitlement to a 25 per cent reduction on their yearly charge, before proceeding to discuss what he termed the "big one.",

He highlighted that Council Tax support, which could be worth up to £1,500 annually, is potentially being overlooked by around 2.25 million individuals. Martin went on to explain: "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 pointed out that those on these benefits often mistakenly assume they'll automatically qualify for "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 cautioned. He further 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 also mentioned that individuals who have had to modify their property due to someone with a disability may be eligible to drop a Council Tax band.

The amount of Council Tax you pay is set by your local authority, which decides on a total sum each year and assigns a 'band' to your home based on its value. However, homes aren't banded on their current market value but on the valuation from April 1, 1991 - when Council Tax was first introduced.

It's been highlighted that there hasn't been a revaluation in Scotland and England since then, leading to the possibility that "so many people may well be in the wrong band".

Martin Lewis has outlined two key checks to see if you're potentially in the incorrect Council Tax band - the neighbours check and the valuation check. The neighbours check involves comparing your property with similar or identical nearby homes to determine if you're in a higher band than you should be.

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 available discounts and reductions, visit MSE.com. Additionally, you can catch up with The Martin Lewis Show on the STV Player.