Inflation may have eased and energy prices are in decline, but Brits are still having to make budgets stretch. On this leap day year, here are 10 ways to help you save an extra £1,000.
The UK has fallen into recession, but the interest rate hiking cycle has been halted and inflation’s coming down, as are energy bills, adding to a more positive outlook for households.
But with an extra leap year day in the mix, it’s a perfect time to sit down and reassess your finances, with the potential to save £1,000+ by ditching and switching accounts and contracts, checking benefit entitlements and using cheaper alternatives.
Here are 10 ideas to get you started…
1) SWITCH BANK ACCOUNTS FOR £200
Banks are so keen to attract new current account customers that they give you cash to switch your everyday banking to them.
NatWest is currently offering £200 for newbies opening its Reward or Select account. You need to meet a few criteria, including depositing £1,250 into the account and logging into the bank’s mobile app within 60 days.
Alternatively, Lloyds Bank is paying new account holders £175 when switching to a Club Lloyds account (£3 per month, which is waived if you pay in £2,000 per month), Club Lloyds Classic (£10 per month), or Club Lloyds Platinum (£21 per month) packaged accounts.
2) Ends 6pm tonight: £150 warm home discount
The Government’s Warm Home Discount scheme gives households claiming certain benefits a £150 discount on their electricity bills between October and March each year.
If you’re eligible for this year’s Warm Home Discount (check the Government’s eligibility checker here), you only have until 6pm tonight (Thursday 29 February) to contact the Department for Work and Pensions (DWP) to claim. The number to call is 0800 030 9322.
The Warm Home Discount has run since 2011 and aims to help households most at risk of fuel poverty. The majority of eligible recipients will get the concession automatically.
3) CHECK YOUR COUNCIL TAX BAND
It’s possible you’ve been paying too much council tax for years – this will be the case if your property has been placed in the wrong band. You can challenge your council tax band with the Valuation Office Agency.
If your home is in a higher band than it should be, it will be moved to the correct band and you’ll get a rebate on the council tax you’ve overpaid.
4) CLAIM THE MARRIAGE ALLOWANCE
Married couples and those in a civil partnership may be eligible for a tax break of £252 per year via the marriage allowance.
It lets a non-taxpaying partner transfer £1,260 of their £12,570 personal allowance to the higher-income-earning partner. The personal allowance is the amount of income you don’t have to pay tax on, so by transferring a portion of your allowance to your partner, it reduces their tax bill.
However, claims can be backdated by up to four tax years, so eligible couples could receive a lump-sum payment worth more than £1,000.
5) Go quick: Use your Tesco Clubcard vouchers
Tesco Clubcard holders have until Thursday 29 February to use vouchers issued back in February 2022. The vouchers can be used to reduce the cost of your weekly shop, petrol, or for Tesco Mobile.
Shoppers who use the vouchers to contribute to their weekly shop can exchange 150 points for £1.50, and those points can be doubled when exchanged for use at the retailer’s 100 reward partners.
6) SWITCH TO A CHEAPER SUPERMARKET
Budget chain Aldi remains the cheapest supermarket around, with the average price of a 72-item shop coming to £129.24, according to data from consumer champion Which? The most expensive came in at £170.44 at Waitrose. Aldi has also been crowned the cheapest supermarket for the third year in a row.
7) REVIEW YOUR SUBSCRIPTIONS
Take a look through all the direct debits and continuous payments set up on your bank account. Are there subscriptions you pay for but no longer use or could live without?
If you have Netflix, Amazon Prime and Disney+, you could consider rotating them to become a ‘super switcher’, potentially saving hundreds of pounds.
8) ARE YOU ELIGIBLE FOR BENEFITS?
Many people may be eligible for benefits such as Universal Credit, a council tax reduction, personal independence payment or working tax credit.
Speak to Citizens Advice or charity turn2us.org to find out what you might be entitled to.
9) HAGGLE YOUR TELECOMS CONTRACTS
There’s no denying that mobile, broadband and pay TV customers have swallowed big price hikes in the last couple of years. But households can save cash by negotiating with suppliers when their broadband or mobile contract ends.
There’s no harm in asking – just be polite and armed with market research. It could help you save a few pounds per month or even hundreds per year.
10) GET A SIDE HUSTLE
If you want to increase your income, a second job or ‘side hustle’ could be the answer if a pay rise isn’t on the cards.
Since 1 January 2024, freelancer platforms such as Ebay, Vinted, Airbnb, Fiverr, Upwork, Uber, and Etsy have recorded how much their users make to report to HMRC to ensure people are paying the right amount of tax.
The ‘trading allowance’ lets you earn up to £1,000 per tax year, which you can use against any gross income made from self-employment, casual or miscellaneous sources. This £1,000 is in addition to your personal allowance.
You can also earn up to £7,500 tax-free from letting out furnished accommodation in your home, under the Rent A Room Scheme.
If you make more than this from side hustles, you need to tell HMRC. Either your tax code will be changed, or you’ll need to complete a self-assessment tax return.
