Three million households are owed council tax refunds of up to £3,659 each. Three million households across the country are owed a combined total of £544million in council tax refunds, according to a Sun investigation released this week.
The average refund due is around £178, but some could be owed as much as £3,659. The data uncovered by the Sun newspaper revealed that over three million households in the UK could collectively be owed £544 million in council tax refunds alone.
Edinburgh City Council holds the largest amount of council tax credits, with £23.4million owed back to residents. Money Saving Expert says a Council Tax account will be in credit if you’ve paid more than you owe at any point.
READ MORE UK faces ‘six inches’ of snow with England hit on ‘five more dates’ in January
The site, founded by Martin Lewis, said: “Normally, this isn’t a problem – in fact, as Council Tax is usually paid in advance, you’ll often be in credit. However, when an account is closed while in credit – which can happen if you move to another area, for example – this can be an issue.”
Consumer rights expert, Martyn James, said: “The vast majority of people in the UK will be unaware that their cash is lining the coffers of their local council – and will be genuinely shocked by this extensive investigation by The Sun.
“Given that some councils use exceptionally aggressive debt collection procedures for even the slightest delay in payment of council tax, I’d argue that the time has come for a single, standardised approach to the collection and management of this tax.”
An LGA Spokesperson said: “Councils strongly recommend that council tax payers keep their accounts and details up to date, and any refunds which are due will be processed accordingly.” Sarah Coles, head of personal finance at Hargreaves Lansdown, added: “Don’t be afraid to call.
“It’s another annoying piece of admin, but this one could leave you more than £100 better off, which isn’t a bad return for ten minutes of admin.”