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| What is my council tax band and how can I check it's right? | |
| (12 days later) | |
| Homeowners in England and Scotland are being urged to check they are in the correct council tax band. | |
| Council tax in England is expected to keep rising by 5% every year to pay for local services, documents in the government's recent Spending Review suggest. | |
| Most councils in England put up bills by the maximum amount in April 2025, and average bills also rose in Wales and Scotland. | |
| What is council tax for and who pays it? | What is council tax for and who pays it? |
| Council tax is a compulsory charge on properties in England, Scotland and Wales, external. | Council tax is a compulsory charge on properties in England, Scotland and Wales, external. |
| It is set by local authorities to raise money for providing services to residents, including: | It is set by local authorities to raise money for providing services to residents, including: |
| rubbish collection | rubbish collection |
| street lighting | street lighting |
| libraries | libraries |
| police and fire services | police and fire services |
| youth clubs | youth clubs |
| parks and recreation facilities | parks and recreation facilities |
| care services | care services |
| Typically, anyone who is over 18 and owns or rents a home has to pay council tax. | Typically, anyone who is over 18 and owns or rents a home has to pay council tax. |
| However, there are some exemptions and discounts. | However, there are some exemptions and discounts. |
| Someone living alone, for example, is entitled to a 25% reduction, external, and properties occupied only by students are completely exempt. | Someone living alone, for example, is entitled to a 25% reduction, external, and properties occupied only by students are completely exempt. |
| Some discounts are available if you - or someone you live with - has a disability, external. | Some discounts are available if you - or someone you live with - has a disability, external. |
| Northern Ireland uses a domestic rates system, external instead of council tax. | Northern Ireland uses a domestic rates system, external instead of council tax. |
| How is council tax calculated and how can I check if I'm in the correct band? | |
| The amount of council tax you pay depends on your property's council tax band - from A to H. | |
| Broadly speaking, the more expensive the property, the higher the band and the more council tax is due. | |
| In England and Scotland, bands are based on the price the property would have sold for in 1991. After separate revaluation exercises, Wales uses 2003 prices and Northern Ireland 2005 prices. | |
| You can check which council tax band your home is in by clicking on the links below: | |
| England and Wales, external | |
| Scotland, external | |
| Northern Ireland, external | |
| Many of the 1991 valuations were done quickly ahead of the introduction of the then-new council tax system. Some were based on estimates from estate agents who simply drove past the property. | |
| Moneysaving expert Martin Lewis says this means tens of thousands of householders could be in the wrong band, external. | |
| Martin Lewis has been campaigning about council tax valuations since 2007 | |
| You cannot ask for your council tax band to be lowered, but in some circumstances you can ask for your property to be revalued which may lead to a reclassification. | |
| To do this, Mr Lewis says you should compare your council tax band with that of neighbouring properties which are similar to yours in size and value. You then need to find out - or estimate - what your property would have been worth in 1991. | |
| If you have evidence that suggests that your property has been wrongly assessed then you can challenge your listing, external. | |
| However, Mr Lewis points out that your property might be in a higher band because your neighbours' bands are too low - and this could mean they are moved up a band instead of you being moved down. | |
| LISTEN: The Martin Lewis Podcast - How to check and challenge your council tax band | |
| Council tax bills also include additional charges. | |
| These are used to fund the cost of care homes and other adult social care services. Another is set by local police and fire authorities to help fund their work. | |
| Some cities with mayors, such as London and Manchester, can also add a separate charges for other services. | |
| What is expected to happen to council tax in 2026? | What is expected to happen to council tax in 2026? |
| Councils with responsibility for social care can increase bills every year by 4.99% without having to hold a referendum or get approval from central government. | Councils with responsibility for social care can increase bills every year by 4.99% without having to hold a referendum or get approval from central government. |
| Smaller councils without social care duties can increase bills by up to 2.99%. | Smaller councils without social care duties can increase bills by up to 2.99%. |
| Documents about police funding released as part of the government's Spending Review assumed councils in England will put bills up by the maximum amount every year until 2029. | |
| Director of the IFS economic think tank Paul Johnson said that this would mean bills were set to rise "at their fastest rate over any Parliament since 2001-05". | |
| Chancellor Rachel Reeves said there had been no change to the cap rules, which were introduced by the previous Conservative government. | Chancellor Rachel Reeves said there had been no change to the cap rules, which were introduced by the previous Conservative government. |
| But the Local Government Association said council budgets were under "severe financial pressure", and services may have to be cut even if bills do rise by the maximum. | But the Local Government Association said council budgets were under "severe financial pressure", and services may have to be cut even if bills do rise by the maximum. |
| Council tax expected to rise by 5% a year | Council tax expected to rise by 5% a year |
| Seven ways the Spending Review will affect you | Seven ways the Spending Review will affect you |
| How much did council tax go up in April 2025? | How much did council tax go up in April 2025? |
| Of the 384 councils in England subject to the referendum rules, 294 (77%) put bills up by the maximum amount. | Of the 384 councils in England subject to the referendum rules, 294 (77%) put bills up by the maximum amount. |
| Another 56 (15%) were close to the limit. Eight authorities (2%) either made no change or reduced bills. | Another 56 (15%) were close to the limit. Eight authorities (2%) either made no change or reduced bills. |
| The government let six areas introduce bigger rises to help deal with funding pressures. | The government let six areas introduce bigger rises to help deal with funding pressures. |
| Bradford Council increased bills by 10% while they rose by 9% in Windsor and Maidenhead, and in Newham. | Bradford Council increased bills by 10% while they rose by 9% in Windsor and Maidenhead, and in Newham. |
| Birmingham, Somerset and Trafford put bills up by 7.5%. | Birmingham, Somerset and Trafford put bills up by 7.5%. |
| A number of other councils were not allowed to put up bills by more than the standard maximum, including Hampshire, which had asked for a 15% uplift. | A number of other councils were not allowed to put up bills by more than the standard maximum, including Hampshire, which had asked for a 15% uplift. |
| It means the average Band D council tax bill in England for 2025-26 is £2,280, which is an increase of £109 or 5% on the 2024-25 figure of £2,171. | It means the average Band D council tax bill in England for 2025-26 is £2,280, which is an increase of £109 or 5% on the 2024-25 figure of £2,171. |
| Struggling homes owe billions in council tax ahead of rise | |
| Councils which provide social care services can increase council tax by a larger amount | |
| What happened to council tax in Scotland and Wales? | What happened to council tax in Scotland and Wales? |
| Council tax rates in Scotland had been frozen or had limited increases since 2007, but went up in April. Bills rose by an average of 9.6% in April, with increases of at least 10% in 13 areas. | Council tax rates in Scotland had been frozen or had limited increases since 2007, but went up in April. Bills rose by an average of 9.6% in April, with increases of at least 10% in 13 areas. |
| It means the average Band D council tax bill in Scotland for 2025-26 is £1,543, up from £1,418 in 2024-25. | It means the average Band D council tax bill in Scotland for 2025-26 is £1,543, up from £1,418 in 2024-25. |
| The country's 32 councils had warned that they faced a potential shortfall of £392m in 2025-26, which could rise to £780m the following year. | The country's 32 councils had warned that they faced a potential shortfall of £392m in 2025-26, which could rise to £780m the following year. |
| The Scottish government said it was giving councils an extra £1bn in 2025-26 to help limit increases. | The Scottish government said it was giving councils an extra £1bn in 2025-26 to help limit increases. |
| Why are Scottish councils so short of cash when tax is going up? | Why are Scottish councils so short of cash when tax is going up? |
| Council tax rates in Wales increased by an average of 7.2% in April. | Council tax rates in Wales increased by an average of 7.2% in April. |
| It means the average Band D council tax bill in Wales for 2025-26 is £2,170, up from £2,024 in 2025-25. | It means the average Band D council tax bill in Wales for 2025-26 is £2,170, up from £2,024 in 2025-25. |
| Wales' 22 local authorities had been given £253m in December to help reduce increases, but council leaders said more was needed. | Wales' 22 local authorities had been given £253m in December to help reduce increases, but council leaders said more was needed. |
| Where else do councils get their money? | Where else do councils get their money? |
| About half of local authority funding comes from council tax, according to the Institute for Government (IFG). | About half of local authority funding comes from council tax, according to the Institute for Government (IFG). |
| Councils in England can also raise money by charging for services including parking, swimming pools and planning applications. | Councils in England can also raise money by charging for services including parking, swimming pools and planning applications. |
| Most of the rest comes from a combination of business rates and central government grants. | Most of the rest comes from a combination of business rates and central government grants. |
| Labour had promised £2bn of central government funding for English councils in the year from April 2025, an extra £700m on top of the £1.3bn announced in October's Budget. | Labour had promised £2bn of central government funding for English councils in the year from April 2025, an extra £700m on top of the £1.3bn announced in October's Budget. |
| But £515m of that was earmarked to pay for higher National Insurance (NI) contributions from April. | But £515m of that was earmarked to pay for higher National Insurance (NI) contributions from April. |
| The local government settlement in the Spending Review provides an additional £3.3bn for local authorities in 2028-29 compared with 2023-24. | The local government settlement in the Spending Review provides an additional £3.3bn for local authorities in 2028-29 compared with 2023-24. |
| The Spending Review also revealed the Ministry of Housing, Communities and Local Government would see a 1.4% cut in its day-to-day budget. | |
| But the government said councils' "core spending power" would still go up, if they increased council tax by the maximum amount. | But the government said councils' "core spending power" would still go up, if they increased council tax by the maximum amount. |
| Separately the government has announced plans to give councils in more deprived areas of England more money, under the first shake-up in funding rules for over a decade. | |
| What happens when a council goes 'bankrupt'? | What happens when a council goes 'bankrupt'? |
| Councils cannot technically go bankrupt, but if they cannot balance their budget for the financial year, they can issue what is called a section 114 notice, external. | Councils cannot technically go bankrupt, but if they cannot balance their budget for the financial year, they can issue what is called a section 114 notice, external. |
| This means they cannot commit to most new spending, and residents could see reduced services, such as fewer bin collections or cuts to libraries. | This means they cannot commit to most new spending, and residents could see reduced services, such as fewer bin collections or cuts to libraries. |
| Before 2018, only two councils had issued a section 114. Twelve have been issued since. | Before 2018, only two councils had issued a section 114. Twelve have been issued since. |
| Birmingham City Council went bust in 2023, with a £760m black hole. It followed Woking Council, Thurrock and Croydon (for the third time). | Birmingham City Council went bust in 2023, with a £760m black hole. It followed Woking Council, Thurrock and Croydon (for the third time). |
| A number of local authorities in England have not issued section 114 notices but are receiving so-called "exceptional financial support", external, to help manage their budgets. | A number of local authorities in England have not issued section 114 notices but are receiving so-called "exceptional financial support", external, to help manage their budgets. |
| Middlesbrough Council was one of 19 authorities allowed to borrow money to fund day-to-day spending in 2024-25. | Middlesbrough Council was one of 19 authorities allowed to borrow money to fund day-to-day spending in 2024-25. |
| Why do councils go bust and what happens when they do? | Why do councils go bust and what happens when they do? |