Money Wellness
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calendar icon14 Jan 2025

Over 3m households owed £544m in council tax refunds

Over three million households in the UK are owed a whopping £544m in council tax refunds, a new investigation by the Sun has found.

That’s an average refund of around £178, but some lucky folks could be in line for as much as £3,659. Imagine what you could do with that!

What’s happening?

The data comes from a freedom-of-information request sent to all 349 local authorities in England, Scotland and Wales.

It turns out that Edinburgh City Council holds the largest amount, with £23.4m sitting unclaimed.

Other councils with large sums include:

  • Glasgow – £17.5m
  • Hammersmith and Fulham – £15.9m
  • Newham, Lambeth, Lewisham, Wandsworth, Liverpool, Camden, Kensington and Chelsea – all over £8.8m

On the flip side, Hyndburn has no council tax credit at all. Some councils, like Orkney Islands and Midlothian, hold less than £32,000.

It’s a mixed bag out there.

Why are people overpaying?

Many people have found themselves overpaying council tax, and it’s often due to:

  • Moving house – you might end up paying for months you won’t be living there.
  • Changes in your property’s council tax band – if it lowers, you’re owed a refund for the overpayment.
  • Forgetting to cancel your direct debit after moving out – this can lead to even more overpayments.

How to claim your refund

Claiming your refund isn't as complicated as it sounds.

Most local authorities have online claim forms – find your local council's site.

If online forms aren’t your thing, you can always reach out directly via phone or email.

Avatar of Michelle Kight

Michelle Kight

Michelle is a qualified journalist who spent over seven years writing for her local online newspaper. Having grown up in some of the North West’s most deprived areas, she has a first-hand and empathetic understanding of what it means to face serious money worries. With a strong interest in mental health issues, she is a keen advocate of boosting the accessibility of financial wellness services.

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