Rachel Reeves council tax timebomb – and how you could cut cost | Personal Finance | Finance

Brace yourself, council tax is poised to rise again next year following Chancellor Rachel Reeves’ allocation of funds in her June spending review. This already costly levy continues to climb year after year across nearly all local authorities, with some areas seeing increases of up to 15.6% – a tough blow for Falkirk in Scotland this April.

But what else might sting for an estimated 400,000 households is the possibility that they’ve been overpaying their council tax for the past three decades. The suggestion comes from Money Saving Expert founder Martin Lewis, who has been sounding the alarm in recent months, urging people to check their and their neighbours’ council tax bands to compare bills. The problem stems from inaccurate valuations from the early 1990s.

Council tax payments are based on your property’s band, determined by its value as of April 1, 1991, with bands ranging from A to H. To implement council tax quickly after the poll tax was scrapped, the Government used a “stop-gap valuation,” which involved estate agents driving past properties and estimating values – often rushing through hundreds of properties in a week. This hasty process casts doubt on the accuracy of many bandings, meaning some households have been overpaying for decades.

Wales carried out a full revaluation in 2003, so errors there are less likely. However, no such revaluation has happened in England or Scotland, so residents in these countries should make the following checks.

To check or dispute a band, first compare your property’s band with your neighbours’ (using voa.gov.uk in England or saa.gov.uk in Scotland), ensuring the properties are similar in size and value as they would have been in 1991. If similar neighbours are in a lower band, you may have a case. Second, check your property’s 1991 valuation using websites like Rightmove or Zoopla to view historic sales data.

Then, if you’d like to make a claim, check if your local council has an online claim form through a quick Google search, or simply call or email them. If your property’s band is correct, don’t worry, there are still ways to cut your council tax bill depending on who lives with you. If you live alone, you get a 25% single person discount.

If others live with you but are “disregarded” for council tax (like full-time students, live-in carers, under 18s, or those with severe mental impairment), you may still get a 25% discount.

If everyone is disregarded, the discount rises to 50%, and sometimes the property can be exempt. Homes adapted for someone with a physical disability may also qualify for a reduction. Plus, if you’re on a low income or certain benefits, the Council Tax Reduction scheme run by your local council could reduce your bill further or even cover it entirely, depending on your situation. Check your local council’s website or call them to see what help you can get.

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