The Chancellor said people will be £1,000 better off by the next general election while delivering her Spring Statement – but you don’t need to wait until then to save money
Rachel Reeves today promised people will be £1,000 better off by the next general election while delivering her Spring Statement.
The latest growth forecast predicts gross domestic product (GDP) will grow slightly slower in 2026, before beating previous expectations in 2027 and 2028.
However, unemployment is expected to rise and tax thresholds remain frozen – meaning people are set to pay more in tax over the next few years.
The Chancellor admitted she is still not “satisfied” by the growth forecasts – but insisted her economic plan “is the right one” and pointed to lower inflation and government borrowing.
She told the Commons: “I can confirm that GDP per person is set to grow more than was expected in the autumn, with growth of 5.6% over the course of this parliament…
“And by the next election, after accounting for inflation, people are forecast to be £1,000 better off per year. We promised change and we are delivering that change.”
But you don’t need to wait to save money – we round up five ways to save up to £3,165 now.
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Switch bank account – £200
Several high street banks are currently paying money for new customers. Santander is paying £200, First Direct, Co-op Bank and Nationwide are each offering £175 and NatWest is giving £150 to newbies.
You need to meet certain eligibility criteria first in order to get the cash. For example, you may need to spend a certain amount each month or have a particular number of direct debits.
Some banks may also require that you have not been a customer with them before. Check the terms and conditions carefully before you apply.
If you’re going to be putting in a big credit application soon, such as a mortgage, you may want to hold off on doing multiple switches in a short period of time.
This is because each application to switch will show on your credit file.
Fix your energy tariff – £200
The energy price cap is currently set at £1,758 a year for the typical household. It will fall to £1,641 from April. But there are fixed deals available now which could save around £200 based on the current price cap.
The Ofgem price cap does not put a limit on how much you can pay for energy – instead, it sets the maximum unit rates and standing charges.
This means your bill is still based on the amount of energy you use, and it can be higher or lower than the headline price cap figure.
The price cap figure represent what the typical billpayer can expect to pay, based on how much energy Ofgem estimates that the average household uses.
Compare insurance – £703
You can save £513 on average on your car insurance, and £190 on home insurance, by comparing prices when your renewal is up, according to MoneySuperMarket.
Research from MoneySavingExpert.com suggests the best time to compare prices for cheaper car insurance is 26 days before your current policy ends.
For home insurance, MSE claims the ideal day to shop around for the cheapest quotes is 15 to 20 days before.
When the time comes to look for other quotes, you should use a comparison website to check for prices. It is also worth checking quotes with some providers directly, as not all appear on comparison websites.
If you find a cheaper quote, you can either switch to that provider, or try haggling down your existing insurance company.
Water social tariff – £175
If you’re eligible for a water social tariff, you could save an estimated £175 a year. A water social tariff is a discounted rate for water and sewerage charges and is typically available if you are on a low income or claiming benefits.
The exact type of support available, and who exactly is eligible for help, varies between water companies. It may also be worth considering a water meter, if you have the same or less rooms in your home as you do people.
A water meter is a device that measures the exact volume of water used, so you are billed based on your on actual consumption rather than estimates.
Downshift your food shop – £1,887
If your food bill has soared, try the Downshift Challenge – which is where you swap branded goods for supermarket own labels – and you could save 30% a year.
The average UK family of four spends around £121 a week on their supermarket food shop, according to NimbleFins. This would work out at a weekly saving of £36.30 – or £1,887.60 over the year.
