Martin Lewis, 45, said around 100,000 people in this country are missing out on a specific council tax discount – and could be missing out on up to £400 a year. 

The council tax discount is titled ‘severe mental impairment’ (SMI) council tax discount, and the Money Saving Expert revealed how you can get it. 

What many people are unaware of it the council tax rules say a person is exempt from council tax if they have a ‘severe mental impairment’, and this includes conditions such as dementia and Alzheimer’s. 

People who fall into this bracket are disregarded for council tax in a similar way students are. 

If you live with someone with a severe mental impairment and no other adults, or adults who have also been disregarded for council tax, you are entitled to a 25 per cent discount. 

If you fall under the bracket of ‘severe mental impairment’ and live alone, you can receive a 100 per cent discount. 

Martin also revealed that in many cases you can have your council tax backdated to the time of the SMI diagnosis. 

If you think you are entitled to the council tax discount you must have been certified by a medical professional. 

Going forward you will then need to get a claim form from your council and register for the council tax discount. 

Martin Lewis also appeared on This Morning today to reveal whether everyone with savings should pile in on premium bonds, since the rate is set to rise on Friday.

NS&I Premium bonds are a savings account with your interest dictated by a random monthly prize draw. The maximum you can put in is £50,000 and each £1 you have is entered in the draw where you can win anything from £25 to £1million.  

Martin said: “The odds of winning a prize with each £1 per draw will be increasing from 1 in 30,000 to 1 in 24,000 with the rate change.”

So should you invest in premium bonds? 

Martin said: “On Friday, the prize fund rate is going up, but most won’t even get this. The rate is just a vague watermark showing that the total payout is 1.4 per cent of all the cash in them. It doesn’t mean put £100 in bonds and you’re likely to win £1.40. 

“That’s impossible, as the smallest prize is £25. In fact 19 of every 20 people with £100 in will win nothing – for the other person to get £25.”

Martin explained that smaller savers are likely to lose out, where as if you save close to £50,000 in the bonds you are more likely to win.

He also revealed that the tax free bonus that applies to premium bonds only really benefit those in the top 1 per cent of earners.

So can you improve your chances of winning


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