3 days ago
Warning issued for hundreds of thousands who could be owed £1,000s after overpaying essential household bill
AN urgent warning has been issued to hundreds of thousands of households who could be overpaying an essential bill and owed £1,000s.
The warning comes from consumer expert Martin Lewis over homes in the wrong council tax band.
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Council tax is a priority bill which means if it's not paid your local authority has legal power to reclaim it.
How much council tax you pay depends on what band you're in, with bands ranging from A to H.
However, hundreds of thousands in England and Scotland are in the wrong ones because of inaccurate valuations carried out in 1991.
You can challenge your band and not get just your future bills lowered, but a backdated payment for all the time you've been overpaying.
In a recent post on X, Martin said hundreds of thousands of households could be owed £1,000s in overpaid council tax back.
He said: "It really is quite unbelievable that if you live in England and Scotland the council tax band you are in today is still dictated by a stopgap drive-by valuation done back in 1991 that was only meant to last a couple of years.
He added: "Up to 400,000 homes are in the wrong band. And if you're in the wrong band and you challenge it not only can you get it lowered, you can get a backdated payout back to when you moved in, or 1991, whichever was sooner."
Exactly how much you can get back in overpaid council tax, or how much your future payments are lowered depends on your circumstances.
However, one person told The Sun they managed to save hundreds of pounds by challenging theirs.
Bear in mind as well, while challenging your council tax band can see your payments lowered, it can also lead to you paying more, so it's worth doing your research.
How to Qualify for Free or Discounted Council Tax!
How to challenge your band
You should start by checking what band you are in first.
If you live in England, you can do this by entering your postcode or address into the government's website here -
Households in Scotland can find out their band via the Scottish Assessor's website here -
If you find out you are in the wrong council tax band, you can then challenge it through the links above.
In England and Wales, you can also call or email the Valuation Office Agency (VOA) to challenge your band.
The number for those in England is 0300 0501 501 and 0300 0505 505 for those in Wales.
There are further instructions on the Government's website on how to do this.
Make sure you don't just challenge your council tax band without doing any research.
Find out what bands neighbouring properties in your area are in.
If they are in lower bands to you, it could be that you're paying too much.
If the VOA agrees that your property is in the wrong band, it will contact you letting you know, usually within a few days.
But it can take up to 28 days if they need to check there's enough evidence to review your challenge.
Overall, it can take up to two months to review a challenge.
If you aren't happy with the VOA's decision, you can appeal your case - but only if you've been told that you can when you get the decision.
Bear in mind, any appeals have to be launched within three months of your decision - you can do this via the Valuation Tribunal Service.
If the Valuation Tribunal agrees with you, it will get the VOA to change your band - and your bill will change.
How to save money on Council Tax
ONE of the biggest household bills you need to pay is Council Tax.
How much you pay will depend on the value of your home, but Senior Consumer Reporter Olivia Marshall explains how you can save.
Check for discounts
Not everyone pays council tax. If you have someone who's living with you and they don't count, you could get 25% off your bill.
This includes full-time students, people on certain apprentice schemes, a live-in carer looking after someone else and student nurses.
If you live on your own you can claim a discount of 25%.
You'll have to apply for the discount on your local authority's website and can check eligibility at
Help for disabled people
People with certain disabilities can get a discount of up to 100%. This applies to anyone considered severely mentally impaired (SMI) which includes conditions such as dementia, Parkinson's or learning difficulties resulting from a stroke.
If you're living with someone affected by SMI then you could qualify for a discount too,
To be considered, a GP needs to certify the SMI and typically they will need to be receiving at least one type of benefit such as attendance allowance or personal independence payments.
Again, you can check your eligibility or a family member's and apply on your local council's website.
If you're on a low income
If you're on a low income or benefits, you might be able to claim a council tax reduction of up to 100%. This means you pay no council tax at all.
You can apply if you own your home or rent, and if you are unemployed or working.
But the rules vary between councils so you will need to contact yours to find out what you can get.
