Martin Lewis has urged people across the UK to check whether they're eligible for a Council Tax discount as he warned that "hundreds of thousands" of people entitled to one were not getting it. It could mean many people are in line for refunds.
The money man posted a video on Twitter explaining what discounts were available. He said many people who were entitled to one were not getting it.
He said: "If you are, not only could this mean that your council tax is lowered substantially going forward, you could be due a backdated pay-out from when you were eligible that may be worth thousands of pounds."
He also asked his followers to share the video with anyone they believed it could be relevant to. To start off, the Money Saving Expert explained how the council decides how much you pay on Council Tax, reports the Mirror.
He explained: It isn't just about the value of your house - it's also about who lives in it. If there are two or more qualifying adults in the house, you pay the full council tax. If there's only one qualifying adult, living with other adults that don't qualify, then you get the single-person 25% discount."
He then explained how if there are no qualifying adults living in the property at all, for example, a house made up entirely of students, then that household pays no Council Tax whatsoever. If you are living in an entire student household and are paying Council Tax you could be owed cash back.
Among the people classed as non-qualifying adults are under-18s, Ukrainian refugees who have come here through the "Homes for Ukraine" scheme, full-time students including student nurses and in some cases part-time student nurses. If you are living with only one other person who is disregarded for Council tax - then you could be owed cash as you would be eligible for the 25% single-person discount.
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The Money Saving Expert also noted that you could get a discount if you are classed as having a severe mental impairment (SMI). You are usually classed as having an SMI if you have dementia, Alzheimer's, or have had a severe stroke.
He added: "There are two eligibility tests you must pass to get the SMI discount. The first is that you must be medically certified by a doctor that you have a severe impairment of intelligence and social functioning that appears to be permanent. Plus, you also need to be receiving a qualifying benefit, although not in Scotland it's eligible for a qualifying benefit even if you're not receiving it."
This can include means tested benefits such as Universal Credit but also non-means tested benefits such as Personal Independence Payment (PIP). Martin also noted that people who have adapted their home due to a disability can also get a discount.
Martin added: "If you've adapted your home because you've had disabilities, you might be able to get your council tax lowered a band. If you're on benefits or a low income, speak to your local council - you might be eligible for council tax discount through that. It's similar if you're on pension credit, that underclaimed benefit for people on pensions on very low incomes is a gateway to lots of other discounts like this one."
He went on to say that up to 400,000 people, especially in England and Scotland, are in the wrong council tax band, meaning they could be able to get their band lowered and a backdated pay-out.
Six ways you could be owed money back on your Council Tax
- Your household is made up entirely of full-time students
- You are living with only one other person and they are disregarded
- You are classed as having a severe mental impairment (SMI)
- You have adapted your home because you have a disability
- You are claiming certain benefits and are on a low income
- You are claiming Pension Credit
