Financial guru Martin Lewis has issued an urgent call for households across the UK to conduct three essential council tax checks, which could result in discounts worth hundreds of pounds or even thousands in backdated refunds.
The founder of Money Saving Expert highlighted the advice in his latest newsletter, noting that a new council tax formula is anticipated to be confirmed early in 2026. This comes as six local authorities, five of them in London, received permission to raise bills above the standard five per cent cap for the next two years.
Check Your Council Tax Band: A Potential Windfall
Your first and most impactful check involves your property's council tax band. The amount you pay is determined by which valuation band (A to H) your home is placed in. Martin Lewis developed a challenge system back in 2007, which has led to over 10,000 successful band reductions and subsequent refunds.
To perform a safe check, you must complete two steps. First, compare your band with those of similar properties on your street using free online tools. Second, estimate what your home's value would have been in 1991, the year bands were set.
Only consider challenging your band if both checks indicate you are in too high a band. Challenging based on just one check risks your neighbour's band being raised instead. Detailed guidance is available, including how to obtain your free Valuation Office Agency (VOA) property details in England and Wales to verify the information held about your home.
Are You Eligible for Valuable Discounts?
Many people overlook significant council tax discounts they are legally entitled to claim. Martin Lewis's team outlines several key scenarios where bills can be slashed.
If you live alone, or only with individuals under 18 or full-time students, you likely qualify for a 25% single person discount. A household comprised entirely of full-time students pays no council tax at all.
Other qualifying circumstances include having a live-in carer, which could cut your bill by half, or living in a property adapted for a disabled person, which can see your band lowered. Those on low incomes, Universal Credit, or Pension Credit may be eligible for reductions of up to 100%.
A particularly important discount relates to Severe Mental Impairment (SMI). If you or someone you live with has a condition like Alzheimer's, severe Parkinson's, or has suffered a stroke and is eligible for certain benefits, a council tax discount may apply.
Claim Back Credit from Past Moves
The third check is for anyone who has moved home since 1993. Because council tax is paid in advance, you often build up credit when you leave a property. If you did not pay by Direct Debit, you may be owed a refund of this credit, typically £100 or more.
Residents are urged to consult the Council Tax overpayments guide to see if they are owed money from a previous address.
Regarding the upcoming changes, while five London councils—Westminster, Wandsworth, Kensington and Chelsea, Hammersmith and Fulham, and the City of London Corporation—have permission to raise taxes above the limit, not all plan to do so. Wandsworth Council has stated it will not exceed the 5% cap.
Westminster's leader suggested no above-threshold rises were planned "in the immediate future," hinting the 2026/27 tax year starting in April may avoid a major hike. Hammersmith and Fulham also pledged not to burden residents with "extraordinary new tax rises." Kensington and Chelsea and the City of London Corporation, however, have not ruled out increases.
Taking just a few minutes to complete Martin Lewis's three checks could put a significant and unexpected sum back into your pocket.
