Three million households owed council tax refunds of up to £3,659 each – use our tool to check

OVER three million households are owed a combined total of £544million in council tax refunds, according to a Sun investigation.

The average refund due is around £178, but some could be owed as much as £3,659.

Sun Money submitted a Freedom of Information Request to all 349 local authorities in England, Scotland and Wales to find out just how much taxpayer money our councils are sitting on.

Edinburgh City Council holds the largest amount of council tax credits, with a staggering £23.4million owed back to residents.

Glasgow follows with £17.5million, then Hammersmith and Fulham with £15.9million.

Newham, Lambeth, Lewisham, Wandsworth, Liverpool, Camden, and Kensington and Chelsea also hold significant sums, all exceeding £8.8million.

On the other end of the scale, Hyndburn holds no council tax credit at all.

Orkney Islands, Midlothian, and Eastleigh hold the smallest amounts, all under £32,000.

Several other councils, including Newark and Sherwood, Rochford, Fylde, Clackmannanshire, Braintree, and the Shetland Islands, hold less than £100,000 in outstanding credits.

Our lists focus on the total value of credit held, Glasgow City Council actually has the largest number of households in credit (88,669), despite not having the largest total sum.

Similarly, Southend-on-Sea has the highest average refund due (£3,659.05), but a relatively small total value and number of households affected.

The councils listed above have offered various explanations for holding so much in council tax credits.

Edinburgh Council points to its transient population and lack of a time limit for claiming refunds, noting that most credits are under £10.

Hammersmith and Fulham encourages residents to claim refunds online.

Harrow explains that credits represent a small percentage of households and often result from moving, house sales, or fluctuating council tax support payments, promising refunds within 14 days of a request.

Glasgow says credits can arise from over payments or early payments and highlights its online tools for managing accounts, stating that credits are automatically applied to reduce current bills.

Consumer rights expert, Martyn James, said: “The vast majority of people in the UK will be unaware that their cash is lining the coffers of their local council – and will be genuinely shocked by this extensive investigation by The Sun.

“Given that some councils use exceptionally aggressive debt collection procedures for even the slightest delay in payment of council tax, I’d argue that the time has come for a single, standardised approach to the collection and management of this tax.”

Our FOI request was submitted at the end of 2024, with the data representing a snapshot of council tax credits held in November of that year.

Councils track this information on either a monthly or annual basis, meaning these figures may not be entirely up-to-date.

The actual amount owed to residents may be higher or lower depending on how frequently each council updates its records.

You can check to see how much cash your local authority might be sitting on by searching for your council in our tool below.

Why are people overpaying?

It’s surprisingly easy to overpay your council tax, and millions of us do.

One of the main reasons is moving house.

Council tax is usually billed annually, from April to April, but paid in instalments.

This means you’re always paying some of it in advance.

Therefore, if you move out before the year’s end, you’ll likely be due a refund for the remaining months.

Another reason for over payments is a change in your property’s council tax band.

If the band is lowered, you’re due a refund for the over payments made at the higher rate.

Finally, forgetting to cancel your direct debit after moving out can lead to continued payments and further over payments.

An LGA Spokesperson said: “Councils strongly recommend that council tax payers keep their accounts and details up to date, and any refunds which are due will be processed accordingly.”

How can I claim a refund?

Finding out if you’re owed a council tax refund is easier than you think.

Many councils have online claim forms available on their website

To find your local council’s site, visit gov.uk/find-local-council.

While some forms can be lengthy, claiming online is often the quickest way to get your money back.

If you’ve recently moved, you’ll likely need your old council tax reference number, which you can find on a previous bill.

If your council doesn’t have an online form, or if the form seems too daunting, you can contact them directly by phone, email, or live chat. 

Bear in mind that even if you contact them this way, you might still need to complete a form later to actually receive the refund.

Sarah Coles, head of personal finance at Hargreaves Lansdown, added: “Don’t be afraid to call.

“It’s another annoying piece of admin, but this one could leave you more than £100 better off, which isn’t a bad return for ten minutes of admin.”