MARTIN Lewis has urged three million people earning under £40,000 to check if they can get a cash boost of over £1,000 a year.
The money-saving expert issued the warning during an episode of ITV‘s Good Morning Britain on Wednesday (May 17).
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Millions of people on means-tested benefits can get a discount on their council tax but aren’t claiming the help.
This may include if you are on Universal Credit and Pension Credit.
Universal Credit is designed to help you with your living costs and is reduced depending on your earnings.
But recent figures reveal 1.25million people are missing out on the benefit every year.
You can claim it online via the Government’s website, but you have to set up an account.
Meanwhile, Pension Credit is available to those over the state pension age and helps to top up your income to a minimum amount.
You can claim this benefit online on the Government’s website or by calling 0800 99 1234. You can also send your application in the post.
Martin said anyone earning under £40,000 should check if they are entitled to Universal Credit, which can open up the council tax discount worth potentially over £1,000 a year.
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Remember though, each council has it’s own rules and doesn’t have to offer discounts. If it does, the amount you can get off varies too.
Martin explained: “This one is a big one. Each council does it differently, some councils you won’t pay any council tax at all.
“Who may be missing out? Well if you’re on means-tested benefits – Universal Credit, Pension Credit.
“The big point here – you must apply for this separately to your Universal Credit and Pension Credit application and people don’t know it’s available.
“They don’t know they need to apply, that’s why three million are missing out.
“You apply via your local council. If you’re on Universal Credit, Pension Credit or other means-tested benefits then you might want to speak to your council to see if you’re one of those three million people who could be getting this help and aren’t.”
Any council tax discount could come in handy after some local authorities hiked their rates by up to 15%.
How can I apply for a council tax discount?
The easiest and quickest way to find out if you are entitled to money off, and how to apply, is by using the Government’s Apply for a Council Tax discount tool.
You just have to enter your postcode and it will tell you what council area you fall under and redirect you to the correct website to apply.
Again, remember each local authority has different criteria to meet and you might not always be guaranteed a discount.
Manchester City Council for example generally offers more council tax support to households where children are living there.
Meanwhile, in April, Mid Devon District Council changed the way it allocates council tax discounts.
For example, the authority no longer takes the Housing Element of Universal Credit into account when calculating your household income and eventual discount.
Depending on the council, you may need certain details to hand when applying.
This includes your National Insurance number, bank statements, a recent payslip or letter from the Jobcentre and a passport or driving licence.
If there are other adults in the household, you might need the same information for them too.
You can also check what council tax band you are in, as if you are in the wrong one you can end up paying more than you should.
To do this, you’ll need to check which band your neighbours are in and work out how much your property was worth in 1991, as this is when council tax bands were decided.
MoneySavingExpert.com has a free calculator tool which can help you do this.
Bear in mind, you might be re-banded and end up having to pay more council tax though or your application might not be successful.
If you want to go ahead with a challenge, you can contact the Valuation Office Agency (VOA) if you live in England or Wales.
If you live in Scotland you will need to contact the Scottish Assessors Association (SAA).
Do you have a money problem that needs sorting? Get in touch by emailing [email protected]
