Households who are already feeling the pinch are bracing themselves for hikes in their energy bills.
Regulator Ofgem this week approved a 54 per cent increase in the energy price cap - the maximum amount that can be charged to customers for their gas and electricity.
With average bills set to rise by £693, according to Chancellor of the Exchequer Rishi Sunak, the government is now offering some help to families with an energy bill rebate worth £350 through two methods.
The first will see electricity customers receive a £200 discount on their energy bills.
However, the £200 will have to be repaid over five years, with families repaying £40 a year for the next five years.
The second method will see households living in properties which fall into Council Tax Bands A to D receive a £150 discount on their council tax bill.
But what can you do if you feel your home is in a higher band than it should be?
With the Government receiving about 70,000 queries every year already this news could see the figure grow even bigger.
Now they have issued guidance on how to challenge and advice on what to check before getting in touch.
They said: "If you’re thinking about challenging your Council Tax band because you think it’s too high there are a few things to consider, in order to make sure you don’t spend time on a challenge that won’t be successful.
"Legally, we can only review your Council Tax band if you provide certain types of evidence to show your banding is wrong, or if it meets certain criteria. This evidence might include the addresses of similar properties to yours that are in a different band, or evidence of house prices which similar properties to yours have sold at.
Evidence needed
You need evidence before making a claim. This includes:
The addresses of up to 5 similar properties in a lower Council Tax band than yours.
They must be the same as your property in:
- age
- style and design
- size - the Valuation Office Agency (VOA) will also consider properties that are larger than yours
- type - for example, they must be semi-detached houses if you live in a semi-detached house
They must also be either:
- in the same street or estate - if you live in a town or city
- in the same village - if you live in the countryside
Evidence from house prices
You can also use the price that your property or similar properties sold for as evidence, if the sales were between:
- 1 April 1989 and 31 March 1993 - if your property is in England
- 1 April 2001 and 31 March 2005 - if your property is in Wales
You can look up property sale prices online from 1995 onwards.
Compare the sale prices to the prices the properties are valued at for Council Tax.
Other circumstances
Separate from this, there are certain other specific circumstances in which a formal review can be made. These are if:
- your property has changed - for example, it’s been demolished, split into multiple properties or multiple properties merged into one
- your property’s use has changed - for example, part of your property is now used for business
- your local area has changed - for example, a new supermarket has been built and has impacted the value of your property
- you’ve been paying Council Tax on your property for less than six months
You should also note that your Council Tax band as well as that of your neighbours could increase as the result of a review, as opposed to decreasing.
How bands are assessed
You may be wondering why your property is in a certain band. It is not just the location of a property, but also the size and characteristics of the building that can affect banding, which could explain why a neighbouring property is in a different band, according to the Government advice.
All properties are banded on the same basis, including properties bought under discount schemes, such as Right to Buy. The purchase price discounts applied to these properties aren’t taken into account when setting the band.
Council Tax bands in England (based on 1 April 1991 values)
| Band | Value at 1 April 1991 |
|---|---|
| A | up to £40,000 |
| B | £40,001 to £52,000 |
| C | £52,001 to £68,000 |
| D | £68,001 to £88,000 |
| E | £88,001 to £120,000 |
| F | £120,001 to £160,000 |
| G | £160,001 to £320,000 |
| H | more than £320,000 |
Council Tax bands in Wales (based on 1 April 2003 values)
| Band | Value at 1 April 2003 |
|---|---|
| A | up to £44,000 |
| B | £44,001 to £65,000 |
| C | £65,001 to £91,000 |
| D | £91,001 to £123,000 |
| E | £123,001 to £162,000 |
| F | £162,001 to £223,000 |
| G | £223,001 to £324,000 |
| H | £324,001 to £424,000 |
| I | more than £424,000 |
Council Tax band assessments
The VOA assesses properties to ensure that they’re in the correct Council Tax band. They automatically assess some properties, for example when a property has been made smaller or when a property is newly built. The VOA also assesses properties when asked to do so, such as during a Council Tax appeal or band review.
Assessments are based on a number of factors, such as a property’s:
- size
- layout
- character
- location
- change in use
- value on 1 April 1991 (England) or 1 April 2003 (Wales)
Check your Council Tax band in England and Wales or Scotland.
A property that’s increased in size may move to a higher band when it’s next purchased.
If you have any concerns regarding the assessment of your Council Tax band contact the VOA.
New properties
When a new property has been built, or an existing property is converted to domestic use (for example, a warehouse conversion), the property will need to have a Council Tax band.
If you’ve moved into a property that doesn’t have a Council Tax band, you should contact your local council. They’ll provide the VOA with the information they need to allocate a band.
Visits from the VOA
If the VOA is unable to get enough information to band a property, they’ll arrange a visit.
Usually, the VOA can get all the information they need from outside, so they won’t need to disturb you. The inspector will often take photographs to save time. Generally, only 1 or 2 external pictures are necessary – much like an estate agent would use.
If the VOA can’t get all the information from the outside, they may ask to go inside the property. If photographs of the inside are needed these won’t be taken without your permission.
Inspections can only happen with your consent at a time when it’s convenient for you. Visits usually take 10 to 30 minutes.
Rebate
The Chancellor announced on Thursday that households in England which are in Council Tax bands A-D will receive a £150 rebate, made directly by local authorities from April.
If you are unsure what Council Tax band your home currently sits in, you can check here.
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