Martin Lewis warns households ‘do not trust’ councils over tax discount rules | Personal Finance | Finance

Martin Lewis has warned unpaid carers not to rely on council websites when checking whether they qualify for a council tax discount, after an investigation found widespread errors that could be costing families hundreds of pounds a year.

An investigation by MoneySavingExpert.com (MSE) found that at least 69 councils in England and Wales are displaying incorrect or incomplete information about the live-in Carer Council Tax discount. A further 80 councils were found to have no easily accessible information online explaining which benefits qualify someone for the reduction.

The discount can cut council tax bills by 25% or even 50%, with a typical 25% reduction worth around £500 a year.

MSE said the errors are likely deterring large numbers of unpaid carers, potentially among the five million people providing free care, from claiming money they are legally entitled to.

The live-in carer discount applies when someone provides at least 35 hours of unpaid care each week to a person they live with, provided that person is not a partner or a child under 18 and receives certain disability benefits.

The carer is then “disregarded” for council tax purposes, often triggering a single-person discount.

However, MSE found many councils are still relying on outdated rules that existed before changes introduced in 2013.

As a result, they frequently list only higher-rate disability benefits, wrongly excluding common entitlements such as lower-rate Attendance Allowance and standard-rate Personal Independence Payment (PIP).

Martin Lewis said unpaid carers “can’t trust councils’ information” and urged anyone who previously thought they were ineligible to check again using independent guidance.

He also advised carers to ask councils to backdate any missed discounts, where possible.

“This army of carers provides an unpaid backbone to the health and care system,” Lewis said, adding that many are under significant financial pressure and are being misled about savings worth hundreds of pounds.

Carers UK chief executive Helen Walker described the findings as “simply unacceptable”, noting that unpaid carers contribute an estimated £184 billion a year to the economy but often struggle financially.

She said incorrect council information could deprive families of a vital lifeline at a time when many are cutting back on essentials or relying on credit.

Since the investigation was published, 11 councils have updated their websites, though MSE says some errors remain.

The organisation has written to all affected councils and reported the issue to the Ministry of Housing, Communities and Local Government, calling for urgent action to ensure council tax guidance is clear, accurate and accessible.