Over three million households are owed an average of £178 in council tax refunds
Over three million households in the UK could be owed a massive £544 million in council tax refunds, with many missing out on valuable discounts. These could save an average of £150 to £300 annually, with some households owed as much as £3,659.
Council Tax Refunds
This information was revealed after The Sun issued a Freedom of Information (FOI) request. Money Saving Expert also issued a FOI last year, revealing the main reasons why some households are owed refunds:
- Paying in Advance: If we pay council tax in advance, like in 10 monthly instalments for a year, but move out early (e.g., in February), we might overpay. Some councils refund us automatically, but if not, the account could stay in credit.
- Forgotten Payments: If we forget to cancel payments after moving out, we might keep paying for a home we no longer live in.
- Rebanding Refunds: If our old property’s council tax band is lowered later, we might have overpaid. Checking the tax band online can help us spot this. For England and Wales, we can check our tax band here https://www.gov.uk/council-tax-bands and for Scotland here https://www.saa.gov.uk/.
If we meet one of the criteria above, we will want to get in touch with our Council to see if we are owed a refund. We can google if our local Council has a Council Tax refund form or we can call or email our Council.
Council Tax Support
Refunds aren’t the only way to save on our Council Tax bills. If we’re on low income, we could be eligible for a reduction of up to 100%. For more information on claiming, check out this Quids in! article on How To Unlock Council Tax Support.
We may also be able to temporarily reduce our council tax bill if we are experiencing ‘exceptional’ hardship, such as losing our job.
And in some cases, residents don’t have to pay at all. These include:
- only full-time students
- only people aged under 18
- members of the armed forces in armed forces accommodation
- people who have moved into a care home or hospital
- people living with somebody else to receive care for reasons of old age, disability, illness, past or present alcohol or drug dependence or past or present mental disorder
- people with severe mental impairment
To apply for council tax support, go to https://www.gov.uk/apply-council-tax-reduction or contact your local council directly.
Image: Yau Ming Low / Shutterstock
