Martin Lewis, 45, also known as the MSE or Money Saving Expert, advised viewers on the best way to reduce their council tax bill, through checking if they are eligible for certain discounts. He announced this ahead of council tax rises which are expected to occur early next month.
Appearing on This Morning, he said: “On 6 April, council tax is likely to rise for almost every council across England, Scotland and Wales – by typically 3 per cent which would be around £50 a year for a band D property, but for some councils it could be nearly double that.
“So it’s a poignant point for everyone to check they’re not overpaying for council tax,” he said, outlining the checks people should do ahead of this rise.”
“Are you entitled to a discount? This could be the single person’s discount of 25 per cent which applies where there’s only one qualifying adult in the property (eg one adult with children, or with full-time students).
“Those with a serious mental impairment such as Alzheimer’s and Parkinson’s and who are eligible for certain benefits may also be disregarded for council tax purposes. Sadly as this is little know, it’s worth researching.
“There can also be council tax discounts for those on pension credit. Are you in the wrong band? I believe up to 400,000 homes in England and Wales are on the wrong council tax band altogether and have been overpaying for years, so you could be owed money back.
“That’s because for many, your council tax band still depends on a ‘2nd gear valuation’ – where back in 1991 valuers drove past houses in second gear with a checklist and allocated bands. This logic was flawed, and means many houses were wrongly banded.
If you are in the wrong band you are not just entitled to a reduction now, but going back to when you moved in (or 1993 whichever is more recent).
“Like Eric who emailed me saying “Having seen your article I discovered that I had been incorrectly banded and applied for a rebate. It was rejected initially and I followed your advice on how to proceed.
“Four weeks later my Local Authority reimbursed almost £9,500 which was a very welcome top up for our pension.”
Martin Lewis’ council tax check
“This is about a two-step check and challenge system I invented in 2007. For full help see Martin’s full council tax check & challenge tool and guide but in a nutshell…
“Step 1: Neighbours Check. See if you’re in a higher band than neighbours in identical properties (you can see their band via the VOA in England & Wales, and the SAA in Scotland).
“Step 2. Valuation Check. Then work out what your house price was in 1991 – when council tax bands were defined – as a belt and braces check. You do this by looking up a recent valuation of a similar property then using a house price calculator to work out what it was worth back in 1991.
“The whole point of the two steps is that you may be in a higher band than your neighbours because theirs is too low, and by applying, theirs could be put up. That’s why there are two checks. Only considering asking for an assessment if you clearly pass BOTH.”
He also warned about the price of stamps increasing next week. He said: “First and second class stamps increasing by 2p. From next Monday (26 March) the price of a first-class stamp for a standard letter will increase from 65p to 67p, and to 56p to 58p for a second-class stamp. For a large letter the cost will go up by 3p to £1.01 (first-class) and to 79p (second-class).
“As stamps just say 1st or 2nd on them (Or 1st or 2nd large for the bigger ones) if you buy them now they are valid in perpetuity after. So while it’s only pennies, if you’re going to send, even a big batch of Christmas cards, you may as well stock up now.”