Martin Lewis urges 2m households to claim £1,300 per month | Personal Finance | Finance

Millions of UK households are missing out on potentially vital financial help because they don’t realise they are eligible, personal finance guru Martin Lewis says. The TV personality and founder of MoneySavingExpert.com said most people aren’t aware that they qualify for council tax support payments that average £1,300 a year.

The benefit, which can cut council tax bills by up to 100%, is applied individually by councils across the country, but many people receiving Universal Credit and Pension Credit don’t realise they could be missing out on an annual cashflow of over £1,000. Mr Lewis said the scheme is only available in England, Scotland and Wales.

He added that he believed it should be applied automatically to those eligible, as the requirement for separate application was leaving many without much-needed extra funds. “Millions of workers, families and pensioners have paid into the system for years [and] are in need of help but think ‘benefits aren’t for people like me’ or ‘I won’t qualify’,” MoneySavingExpert said.

“Often that’s wrong. Benefits are both a political hot potato and a lifeline to many struggling to get by, including millions of people who are in work and on low incomes.”

Data released by research firm Policy in Practice showed that up to 2.6 million households in England, Scotland, and Wales are missing out on council tax support, each losing an average of £1,300 per year.

“Frustratingly, many people who qualify for Universal Credit and Pension Credit miss out on this as they don’t know you need to apply for it separately,” Martin Lewis said.

“Every council runs its own scheme, so what you get depends on where you live, but it can cut your council tax bill by up to 100%.”

Council tax is a yearly fee paid to local authorities, with the cost set by the council and going towards funding services.

Alongside where you live, your council tax bill will depend on the value of your home and your age, with over-18-year-olds typically having to pay council tax and the full bill based on at least two adults sharing a home.

Those on low incomes can apply to their local councils for support, which will be assessed depending on personal circumstances, household income and dependents.

“You could be eligible if you’re on a low income or claim benefits,” GOV.UK said. “Your bill could be reduced by up to 100%. You can apply if you own your home, rent, are unemployed or working.”