When it comes to money-saving advice, the nation is often hanging on the very word of Martin Lewis – and they might want to listen now more than ever.
That’s because he’s warned 2.6 million households that, if they don’t check their eligibility for one simple discount, they could be missing out on an extra £1,300 per year.
As part of the latest Money Saving Expert newsletter, Martin and the team have given their rundown on the eight largest benefits that millions of people could be missing out on without a few simple checks.
Urging people not to write themselves off and automatically assume that they won’t even qualify, the biggest benefit that MSE has urged people to check their eligibility for is actually Council Tax support.
It’s worth noting that this isn’t available to people living in Northern Ireland, but as the team says, many who are already claiming either Universal Credit or Pension Credit risk going without a little extra help, as they don’t realise that they need to make a separate application for it. And in Martin’s words, this is a ‘process that needs to change.’
MSE has based their data on a new study by Policy in Practice for 2025 that concludes that a ‘staggering’ £24 billion is being ‘left on the table at a time when many are struggling to stay afloat.’
But this isn’t a failure of those who are eligible and don’t realise: in their view, it’s a ‘failure of a social security system that is still too complex, too fragmented and too passive.’
The study further adds: ‘Every £1 claimed is a step toward better health, improved education, stronger families and reduced pressure on public services.’
How to check if you’re eligible for a Council Tax discount
So, how can you check if you’re one of the 2.6 million households that are eligible? Each local council will have its own system, so, as the MSE team remind us, the discount you could be entitled to very much depends on where you live.
It’s worth doing, though, as they can, in some cases, amount to up to 100%. If you’re living in either England or Wales, you can apply by visiting Gov.uk and finding the details of your specific local council’s policy. For those in Scotland, you can do the same on Mygov.scot.
It’s a case-by-case system, but you’ll likely be asked to provide evidence to support the claim, which, if you’re applying based on low income, might be details of your income and savings.
MSE adds: ‘Where your application is successful but your circumstances later change, do inform your local council as it may mean you’re no longer eligible for a reduced bill.’
Who is eligible for a Council Tax discount?
People on low income or certain benefits
There are a few situations where people might qualify for a Council Tax discount. The first is being on a low income or on benefits, including Universal Credit.
As the MSE team outline, the amount that’ll be whacked off your bill depends on things like where you live, your income, how many children you have and whether they live at home with you, and your income, which includes savings, pensions and your partner’s earnings, too.
In England, councils can also choose to ignore things like child maintenance, fostering payments and charity contributions – but again, you’ll need to check your local council’s website directly to be sure.
People receiving Pension Credit
If you’re currently receiving the ‘guaranteed’ part of your Pension Credit (i.e. the ‘ top-ups’ that bring your weekly income to £227.10 if you’re single or to £346.60 if you have a partner), your Council Tax discount could amount to up to 100%.
If you’re on the ‘savings’ part of Pension Credit, you might still be in line for a reduction – but it’s worth keeping in mind that this likely won’t be a full one.
People living in a property adapted for a disabled person
If either you or a family member you’re living with is disabled and has had adaptations to accommodate, you could be eligible to drop a Council Tax band – which is technically slightly different to qualifying for a discount, but it’ll work out cheaper nonetheless.
If your property is in band A (which is the lowest Council Tax band), then your bill will be discounted by 17% instead.
Properties that are empty
Homes that are lying empty are also eligible for a complete Council Tax discount. As MSE reminds us, this can include situations where:
- The owner of the property has died
- The owner is a long-term resident of either a care home or a hospital
- The owner is in prison.
Second homes that aren’t lived in, or properties with an annexe
In some circumstances, second homes won’t need to have the full rate of Council Tax paid on them – but this is usually if you have to have access to a second home for work (i.e. because you work away during the week), whether it’s rented or owned.
It’s worth noting that, since April, English councils can technically charge a 100% Council Tax premium on second homes – and this is on top of what’s usually charged.
And, finally, if you live in a home with an annexe, you could be eligible for a smaller Council Tax bill if it’s used as a residence (i.e. as a ‘Granny Annexe’).
MSE explains: ‘If you qualify as having an annexe, you will receive two Council Tax bills – one for the annexe and a separate one for the rest of your home.
‘You’re entitled to a discount of 50% on the annexe’s Council Tax bill, but you’ll still pay Council Tax as normal on the main house.’ So, there you have it.
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