In his latest bid to help Britons combat the escalating cost of living, money guru Martin Lewis has unveiled a straightforward 12-minute solution that could significantly reduce council tax bills for thousands of households.
The founder of MoneySavingExpert.com revealed during his ITV show that many homeowners are potentially overpaying by hundreds of pounds each year due to incorrect council tax banding - a legacy issue dating back to the 1990s.
The 12-Minute Check That Could Save You Hundreds
Lewis outlined a simple three-step process that takes approximately 12 minutes to complete:
- Check your neighbours - Compare your band with similar properties on your street
- Verify your 1991 value - Use online tools to estimate what your property would have been worth when bands were set
- Challenge if overpaying - Submit a formal challenge to the Valuation Office Agency if evidence suggests you're in too high a band
Why So Many Properties Are Potentially Mis-banded
The current council tax system relies on property valuations conducted in 1991, when the process was rushed and often inaccurate. Lewis explained that many homes were placed in incorrect bands during this hasty assessment period.
"The system was designed and implemented in a hurry," Lewis stated, emphasising that "many people are in the wrong band and paying hundreds of pounds more than they should."
Success Stories Highlight Potential Savings
The money expert shared compelling examples of viewers who successfully challenged their bands, including one couple who discovered they'd overpaid by an astonishing £1,700 after being placed in too high a category.
Another case highlighted a family who secured a £400 reduction plus a £1,200 backdated refund - demonstrating the substantial financial impact of taking action.
Important Considerations Before Challenging
While the potential savings are significant, Lewis cautioned homeowners to research thoroughly before submitting a challenge. In rare cases, challenging could result in your band increasing rather than decreasing, though statistics show most successful challenges lead to reductions.
The process requires careful evidence gathering, but for those paying hundreds of pounds more than necessary, the 12-minute investment could yield substantial returns.
