Martin Lewis issues ‘painful’ Council Tax warning over £394 rise in October | Personal Finance | Finance

Money expert Martin Lewis has issued a ‘painful’ Council Tax warning over fears Labour could increase bills by an average of £394.

Labour has reportedly not ruled out ending the 25 percent single person council tax discount, a move which could see anyone who lives on their own – from young professionals to state pensioners – face bill increases worth £394.

The average Band D Council Tax bill in England is currently £1,578 a year, meaning a single person discount would be worth an average of £394, or 25 percent off.

Now Martin Lewis has issued a warning over the possible move, stressing that it would hit single adults and single parent families – as well as create two other problems.

He outlined that those with Severe Medical Impairments can already get 25 percent off their bills, but this ‘surely’ wouldn’t be ended as well, before adding that many hundreds of thousands of households are still in the wrong Council Tax bands and need to be re-assessed to make sure they aren’t overpaying.

He said: “Reports out that the govt hasn’t ruled out ending the 25% single person council tax discount. Clearly this would be a painful hit for single adults and single parent families, but also 1) What about the similar reduction for Severe Medical Impairments?

“Surely they’re not going to end the reduction for these vulnerable people too?

“Substantial council tax changes shouldn’t be done without a rebanding. Up to 400,000 homes are in the wrong band because we still rely in Eng & Scot on a stop-gap temporary valuation done in 1991 to dictate what bands people are in. If such a big change comes, surely there should be even more emphasis on ensuring that people are in the right band and not overpaying.”

Labour will put out its Budget on October 31, but Chancellor Rachel Reeves and Prime Minister Keir Starmer have already warned it is going to be ‘painful’.