A significant cash windfall could be in store for hundreds of thousands of Britons who have relocated within the last 31 years. This comes as a stark warning amidst the aftermath of 'Awful April', a month that saw a surge in various household bills, including Council Tax.

Councils across the country have hiked the annual bill by 4.99 per cent* - the maximum increase permissible without necessitating a local vote or referendum. However, six regions, including Bradford, were granted permission to surpass this limit, with Bradford's Council Tax soaring by an eye-watering 9.9 per cent.

Council Tax, which funds local amenities such as schools, waste collection, park maintenance, leisure facilities, and occasionally contributes to local police, fire and rescue services, is controversially determined by the market value of your property on 1 April 1991 in England, or 2003 in Wales. Despite the tax hike, the Local Government Association has cautioned that further reductions to already strained services cannot be dismissed.

In a surprising revelation, Martin Lewis' MSE recently uncovered through Freedom of Information requests that a staggering £141 million is owed to Council Tax-payers across 349 local authority areas in England, Scotland and Wales. This implies that approximately 800,000 households are due refunds, with potential claims exceeding £100.

"Essentially, a Council Tax account will be in credit if you've paid more than you owe at any point," explains MSE. "Normally, this isn't a problem – in fact, as Council Tax is usually paid in advance, you'll often be in credit. However, when an account is closed while in credit – which can happen if you move to another area, for example – this can be an issue.", reports the Mirror.

Moving house tends to be the main reason why people have accidentally overpaid on Council Tax, which is paid in 10 instalments. For example, if you pay for the duration of April to March - but moved out in mid-February, you'll likely have overpaid by a month and a half.

"Councils will often automatically give you a refund before closing your account," MSE added. "But if yours doesn't and you don't reclaim, it'll be closed in credit."

Many individuals are entitled to a Council Tax refund because they forget to cancel their Direct Debit payments after moving out, continuing to pay for a property they no longer inhabit. Additionally, refunds may be due for those who have had their property's Council Tax band lowered.

MSE highlights that those most likely to have a legitimate claim are individuals who moved out of a council area within the last 31 years (since 1993) and did not pay Council Tax via Direct Debit. "The vast majority of councils that do try to refund credit tell us they can't if you paid by any method other than Direct Debit – for example, if you paid by cash, standing order or cheque," the website explains. Furthermore, some residents may qualify for a discount or complete exemption from Council Tax. Eligibility criteria for these concessions can be checked here.