How to challenge your council tax band - and potentially get £100 energy payout

Are you missing out on the government's £100 energy payment due to being in the wrong council tax band?

The £100 energy payment, announced in the budget, is available to households in bands A-D.

Millions of homes in higher bands won't be entitled - but a challenge is possible.

There were 66,060 challenges made in the tax year from April 2025 to 2026.

Some 69,120 rulings were made - a greater figure due to the Valuation Office making its way through a backlog.

Here's how they played out...

Roughly one in seven challenges resulted in a band reduction, but the vast majority remained the same.

An unlucky few (1%) even saw their band raised.

Why people challenge their council tax band

Let's start by looking at why people can challenge their band if they're in England or Wales (people in Scotland can find out how to challenge via the Scottish Assessors Association here)...

The Valuation Office Agency (VOA) for England and Wales accepts appeals on the following grounds:

• Your house has been overvalued - you'll need proof here, such as the sale price;
• Neighbours with similar or bigger homes are in lower bands;
• There's been a change to the property (i.e. some of it has been demolished or it's been converted into flats), or the surrounding area since the original valuation;
• You haven't extended your home, or made significant improvements that would justify a band shift;
• The valuation is wrong due to a legal decision on another property;
• And the property details are wrong or incomplete.

How to gather evidence

The first thing to do is check what band your neighbours with similar properties are in. You could ask them or check the VOA or SAA websites.

You then need to look at the valuation. Your council tax band is based on your property's value in 1991 in England and Scotland, and 2003 in Wales - and you'll need to gauge this even if your property wasn't built at the time.

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There are a few steps to this. First, if you've just bought the house, you have an up-to-date valuation - or you can get information from sites such as Rightmove and Zoopla.

Once you have an idea of the current valuation, you can use tools such as the Nationwide House Price Calculator to discover the valuation in 1991 or 2003.

Which band does this old valuation put you in according to this table?

Time to appeal - but beware one catch

If you think your original valuation is wrong, it's now time to go to the VOA or SAA to state your case.

If you think your band has changed since the initial valuation, you need to go to your local council instead.

This can be done via their respective websites.

Making improvements to your property won't increase your council tax - but the band could change upon sale. This can also happen if the property is subject to a new lease for more than seven years.

You can check if a home you are buying is pending a band review on the VOA's council tax list. Helpfully, the government website has a step-by-step guide to appealing in England and Wales here.

You could lower your band through a review - but beware: assessors could also find your property, and potentially those of your neighbours, are undervalued.

Your council tax bill(s) would then go up and you'd miss out on the energy payment - a double whammy.

(c) Sky News 2026: How to challenge your council tax band - and potentially get £100 energy payout