Investigation
REFUND RIGHT
Three million households owed council tax refunds of up to £3,659 each – use our tool to check
Check our map to see if you're owed up to £3,659 back
OVER three million households are owed a combined total of £544million in council tax refunds, according to a Sun investigation.
The average refund due is around £178, but some could be owed as much as £3,659.
Sun Money submitted a Freedom of Information Request to all 349 local authorities in England, Scotland and Wales to find out just how much taxpayer money our councils are sitting on.
Edinburgh City Council holds the largest amount of council tax credits, with a staggering £23.4million owed back to residents.
Glasgow follows with £17.5million, then Hammersmith and Fulham with £15.9million.
Newham, Lambeth, Lewisham, Wandsworth, Liverpool, Camden, and Kensington and Chelsea also hold significant sums, all exceeding £8.8million.
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On the other end of the scale, Hyndburn holds no council tax credit at all.
Orkney Islands, Midlothian, and Eastleigh hold the smallest amounts, all under £32,000.
Several other councils, including Newark and Sherwood, Rochford, Fylde, Clackmannanshire, Braintree, and the Shetland Islands, hold less than £100,000 in outstanding credits.
Our lists focus on the total value of credit held, Glasgow City Council actually has the largest number of households in credit (88,669), despite not having the largest total sum.
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Similarly, Southend-on-Sea has the highest average refund due (£3,659.05), but a relatively small total value and number of households affected.
How to challenge your council tax band
The councils listed above have offered various explanations for holding so much in council tax credits.
Edinburgh Council points to its transient population and lack of a time limit for claiming refunds, noting that most credits are under £10.
Hammersmith and Fulham encourages residents to claim refunds online.
Harrow explains that credits represent a small percentage of households and often result from moving, house sales, or fluctuating council tax support payments, promising refunds within 14 days of a request.
Glasgow says credits can arise from over payments or early payments and highlights its online tools for managing accounts, stating that credits are automatically applied to reduce current bills.
NO COUNCIL DATA
EXACTLY 26 local authorities refused to disclose the requested data, citing a risk of increased fraudulent behaviour if they were to do so.
These included:
- Bassetlaw District Council
- Blaenau Gwent County Borough Council
- Comhairle nan Eilean Siar (Western Isles Council)
- Cotswold District Council
- Cumberland Council
- East Lindsey District Council
- Elmbridge Borough Council
- Epping Forest District Council
- Fife Council
- Forest of Dean District Council
- Gosport Borough Council
- High Peak Borough Council
- Horsham District Council
- Inverclyde Council
- London Borough of Brent
- London Borough of Bromley
- London Borough of Islington
- London Borough of Merton
- London Borough of Tower Hamlets
- Preston City Council
- Rutland County Council
- South Derbyshire District Council
- South Kesteven District Council
- Staffordshire Moorlands District Council
- West Oxfordshire District Council
- Wirral Council
A further 32 councils failed to respond or disclose the data requested following repeated attempts by The Sun:
- Aberdeen City Council
- Barnsley Metropolitan Borough Council
- Bath and North East Somerset Council
- Bournemouth, Christchurch and Poole Council
- Bridgend County Borough Council
- Calderdale Metropolitan Borough Council
- Carmarthenshire County Council
- Colchester Borough Council
- Eastbourne Borough Council
- Folkestone and Hythe District Council
- Harlow District Council
- Highland Council
- Lewes District Council
- London Borough of Barnet
- London Borough of Haringey
- Luton Borough Council
- Maldon District Council
- Middlesbrough Council
- Milton Keynes City Council
- Newcastle City Council
- Powys County Council
- Ribble Valley Borough Council
- Rossendale Borough Council
- Salford City Council
- South Gloucestershire Council
- Spelthorne Borough Council
- Stockton-on-Tees Borough Council
- Sunderland City Council
- Telford and Wrekin Council
- Westminster City Council
- Wokingham Borough Council
- Wrexham County Borough Council
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."
Our FOI request was submitted at the end of 2024, with the data representing a snapshot of council tax credits held in November of that year.
Councils track this information on either a monthly or annual basis, meaning these figures may not be entirely up-to-date.
The actual amount owed to residents may be higher or lower depending on how frequently each council updates its records.
You can check to see how much cash your local authority might be sitting on by searching for your council in our tool below.
Why are people overpaying?
It's surprisingly easy to overpay your council tax, and millions of us do.
One of the main reasons is moving house.
Council tax is usually billed annually, from April to April, but paid in instalments.
This means you're always paying some of it in advance.
Therefore, if you move out before the year's end, you'll likely be due a refund for the remaining months.
Another reason for over payments is a change in your property's council tax band.
If the band is lowered, you're due a refund for the over payments made at the higher rate.
Finally, forgetting to cancel your direct debit after moving out can lead to continued payments and further over payments.
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."
REDUCE YOUR CHANCES OF OVERPAYING
SETTING up a direct debit for your council tax is one of the simplest ways to avoid overpayments and makes claiming refunds much easier.
This is because the council has your bank details readily available, allowing them to automatically refund any overpayments directly into your account.
It's always best to cancel these payment authorisations if you're moving to ensure that you don't make any more payments.
How can I claim a refund?
Finding out if you're owed a council tax refund is easier than you think.
Many councils have online claim forms available on their website
To find your local council's site, visit gov.uk/find-local-council.
While some forms can be lengthy, claiming online is often the quickest way to get your money back.
If you've recently moved, you'll likely need your old council tax reference number, which you can find on a previous bill.
If your council doesn't have an online form, or if the form seems too daunting, you can contact them directly by phone, email, or live chat.
Bear in mind that even if you contact them this way, you might still need to complete a form later to actually receive the refund.
READ MORE SUN STORIES
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."
CHECK FOR COUNCIL TAX DISCOUNTS
IF you're struggling with your council tax costs, it's worth checking out whether you're entitled to reduce your tax bill, which can save you thousands of pounds.
Some people can even get their bills slashed by 100%, meaning they won't pay anything at all.
Here are all the other discounts available.
If you're a pensioner
If you don't receive the guaranteed credit part of pension credit, you could still get a council tax discount if you have a low income and less than £16,000 in savings.
If you live alone, you will get the 25% reduction, even if you’re not entitled to any benefits.
If you're a disabled
People with certain disabilities can get a discount of up to 100%. This applies to anyone considered severely mentally impaired (SMI), which includes conditions such as dementia, Parkinson’s or learning difficulties resulting from a stroke.
If you're living with someone affected with an SMI, you could qualify for a discount, too.
To be considered, a GP needs to certify the SMI, and typically, they will need to receive at least one type of benefit, such as attendance allowance or personal independence payments (PIP).
Again, you can check your eligibility or that of a family member and apply on your local council’s website.
If you live alone
If you're the only adult in your home, you can get a 25% discount on your council tax bill.
This includes if you're a single parent with children under 18 in the house.
Usually, you'll need to let your local council know to get the reduction.
Even if other adults are in your home, you might still get the 25% reduction, as some groups of people are "disregarded" for council tax purposes.
If you're a student
Households where everyone is a full-time student do not have to pay any council tax.
To qualify as a full-time student, your course must:
- Last at least one year
- Involve at least 21 hours study per week
If you're between 18 and 20 and doing A Levels or equivalent, your course must last at least three months and involve at least 12 hours of study a week.
If there is an adult who is not a student in your household, they will need to pay council tax, but should still qualify for a discount if everyone else is a student.
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