Martin Lewis has helped millions of consumers save money over the years with his advice on household bills, mortgages and your consumer rights, to name a few.
For many families, it has been another tough year for their finances, with interest rates still high and energy bills set to rise again next year. But thankfully, there are ways to cut your costs – so as 2024 comes to a close, we’ve rounded up the best tips from the MoneySavingExpert.com founder to help you into the New Year.
Boost your state pension by thousands
Martin says you could potentially boost your state pension by thousands by plugging the gaps in your National Insurance record. Most people need 35 qualifying years on their National Insurance record to get the full new state pension and ten years to receive anything at all. If you have gaps in your record, you could receive less state pension than you were expecting.
At the moment, you can buy back missing National Insurance years dating back to 2006 – but the rules are changing so that after April 5, 2025, you will only be able to go back six tax years. Martin says this is the “most lucrative” thing you can do. It costs £824 to buy a missing National Insurance year, and this adds up to £328 each year to your pre-tax state pension.
Get free £1,000 towards your first home
Martin has urged first-time buyers to open a Lifetime ISA (LISA) savings account to help give them free cash towards the purchase of their first home. A LISA is a tax-free savings account in which the government gives you a 25% bonus on your savings. You can open one anytime between the ages of 18 and 39 years.
You can save up to £4,000 a year and the government will then add a 25% bonus on top – so a free £1,000 each year. However, Martin has warned that there are some caveats. The first, is that if you withdraw your cash for any reason other than your first home or retirement, you’ll be slapped with a 25% withdrawal penalty, which not only wipes out the bonus but also part of your original savings. You also cannot use the money to buy a property costing over £450,000.
Cut your water bill
Martin says that your water bill is often the “forgotten utility” as you are simply stuck with your area’s provider and have no options to switch. However, if you have fewer people living in your home than you have bedrooms, then you may be able to swap to a water meter – and, in turn, make your bills cheaper. So if your home has three bedrooms but only two of you live there, then you can benefit. Before swapping, check if you would benefit from using a water calculator.
Find money in lost savings accounts
The MSE website founder says there is an estimated £82billion sitting in lost bank and savings accounts in the UK – plus around three million lost pension pots. Martin says the process of finding them can take a “little effort” but it can be worth it. Martin says the biggest payouts are often seen from old private pension or investment providers.
To track down old pension pots, the first thing you need to do is contact ex-employers and dig out old paperwork. However, if this isn’t possible, then the Government has a free Pension Tracing Service tool to track down lost pensions on its website. You can find lost savings accounts through My Lost Account, a joint venture between UK Finance, the Building Societies Association, and National Savings & Investments (NS&I).
Claim back energy credit
If you have credit in your energy bill account, then one of the easiest ways to make some cash is the claim this back. Your monthly energy bills – if you pay by direct debit – are just your annual cost divided by 12. This smooths out your bills over the year, so you don’t face sky-high bills in the winter. Martin says if you have two months’ worth of monthly bill payments in your energy account, then you should ask for some month back.
Tax break for married couples
Martin has urged married couples – or those in a civil partnership – to claim the Marriage Tax Allowance, which could cut their yearly tax bill and get them a free lump sum payment. The tax perk allows the lower earner in the relationship to transfer £1,260 of their personal allowance — the amount they can make before paying tax — to their partner.
One of you needs to be a non-taxpayer, while the other person needs to be paying the basic 20% rate of tax. To claim, the person who doesn’t pay tax needs to apply for it. Couples who have not applied before can also backdate their claims for the previous four tax years which could potentially give them a lump sum payment worth over £1,000. If you’re applying for the current tax year, the higher earner will pay slightly less tax on their take-home pay, and if you’re due a backdated payment, it will come in the form of a cheque or bank transfer.
Haggle your broadband and mobile bills
Some bills are set in stone – however, Martin says others are a little bit more flexible, and you may be able to haggle them cheaper. These include broadband, mobile and insurance. You can only haggle when you are at the end – or nearing the end of your contract.
When going into a haggle, Martin says you need to provide a reason why you want a lower price; you will then be put through to “customer disconnection” which Martin says is actually “customer retention”. This group have “the power to keep you” and offer you cheaper deals. Often these people have quotas on the number of discounts they can give a day.
Best time for cheapest home and car insurance
If your car or home insurance is up for renewal, make sure you compare prices online to see if you can get a better price elsewhere. Martin Lewis has previously advised checking car insurance quotes 23 days before your current deal expires, or 21 days for home insurance. If you want to stick with your current insurance provider, try and haggle – if you do this, Martin has said the best way is to use charm and be polite.
Don’t forget travel insurance
Travel insurance can help cover you if something goes wrong while you’re on holiday – for example, medical expenses to your luggage going missing. Martin has long highlighted the importance of sorting out travel insurance “as soon as you book”. Use comparison websites to check the best prices. You’ll need to enter details about yourself, such as your age, as well as information about your trip, including where you’re going and for how long.
Challenge your council tax band
Martin has warned how hundreds of thousands of houses are in the wrong council tax band, and many have been paying more than they need to. If you think this could be you, Martin says you need to do your research first. First, you need to see what council tax band your neighbours are on. You can check council bands online for free, so you don’t need to ask your neighbours – just make sure you try and compare homes of similar sizes and value.
Next, you need to work out how much your property was worth in 1991, as this is when council tax was launched by the Government. Once you’ve done these checks, if you think you’ve got a good case, you can submit it to the Valuation Office Agency (VOA) in England and Wales or the Scottish Assessors Association (SAA) in Scotland. If successful, you will be contacted with a changed band and some money back. However, they could go up or down, so they could become more expensive.
Check you’re eligible for council tax discount
Martin has warned that thousands of people could be missing out on council tax discounts worth between 25% to 100% in the UK. People who can claim a discount on their council tax include those on means-tested benefits, people who live on their own, and people who are classed as being “severely mentally impaired”. You are classed as this if you have a mental health condition which is permanent – such as dementia.
A single-person discount could give you a discount of 25% if everyone is classed as disregarded in the home – this is those who are not counted by the local authority when calculating council tax for a household – then they can get a discount of 50%, and if you are on a low income you could receive a 100% discount on your council tax bill. If you are found to be eligible for a discount, you could potentially be able to claim back pay from your council. You can read our full and extensive list of all the discounts you can get in our article here.
Check you’re not being underpaid
Hundreds of thousands of people are legally being underpaid in the UK, and Martin says Brits should be regularly checking their payslips to make sure they are not. One of the main ways people can be underpaid is through uniforms, tools and safety clothing. If you need to buy them, then the cost should not take you below the equivalent minimum wage over your pay period – for example, if you are paid weekly or monthly.
You should also be paid for all of your working time, including overtime, security checks, handover meetings, opening up, and being on call. If you get less than minimum wage once these are factored in, you’re owed money. Alongside this, it’s important to remember that you should not be topping up your wage with tips or overtime – these extras must be on top of minimum wage.
For those who are on commission only, Martin says employers must top up your earnings with a salary to meet the minimum wage if you don’t earn it. If you are being underpaid, you can report it to HMRC anonymously, and they will then investigate your situation. If ruled in your favour, you could receive up to six years back pay.
Cut your credit card debt
Martin has long advocated for people to check if they can cut their credit card debt by using a balance transfer card. These allow you to move your existing credit card debt to another credit card that charges 0% interest for a set period of time. You’ll sometimes have to pay a fee to move your debt – although some shorter cards may come with zero fees.
You’ll start paying the representative APR once the promotional period is up. Always make sure you check your eligibility first, so you know which card you’re likely to be accepted for, and make sure you go for a card with a long enough length of time to clear your debt. Finally, try to avoid spending or withdrawing cash on your card.
Make money by switching bank account
Martin says switching banks can be one of the easiest ways to earn extra cash when you need it. All you need to do is switch your main bank to another that is offering a switching incentive. To get the cash, you will need to you need to close and switch your current account using the Current Account Switch Service (CASS).
This is a free service which will move your balance, direct debits, and salary over to the new bank within seven days. Sometimes, you may also need to jump through a few hoops to get the money; this can include depositing money into the account, setting up direct debits, or registering for mobile banking. Once these have been done, you should get your money.
Look for forgotten Child Trust Fund
If you are under 22 years old, Martin says you should check if you have a forgotten Child Trust Fund account. Child Trust Funds were offered to children born between September 2002 and January 2011, and each child was given a voucher worth £250 – or £500 for those from lower-income families. You could put up to £9,000 a year into one of these accounts, but if a parent didn’t open one, HMRC opened one on behalf of the child.
This means many accounts may have been forgotten about, and there could be cash in them. If you know the Child Trust fund provider, you can contact them directly. If you’ve lost track of it, Martin says you can contact HMRC by filling out a form on GOV.UK. You can ask HMRC to find a Child Trust Fund if you’re a parent or guardian of a child under 18, or if you’re 16 or over and looking for your own account.
Get free cash to help with childcare
Martin has said this government childcare scheme is “appallingly named”, and because of this, over 800,000 parents could be missing out on it. The scheme is the Tax Fee Childcare Scheme which essentially is a discount childcare savings scheme. Overall, it is an online account which parents and guardians pay into, and then they receive top-up payments from the Government. For every £8 you pay into the account, the Government will automatically add in £2 which you can put towards your childcare costs.
It helps pay for children up to the age of 11 years, or up to 16 if the child has a disability. If you’re eligible, you can get up to £500 every three months – up to £2,000 a year – for each of your children. If your child is disabled, you could receive £1,000 or up to £4,000. It is open to working families earning less than £100,000 collectively – so you cannot get this help if you are claiming certain benefits such as Tax Credits or Universal Credits.
Get money back on your student loan
Martin has previously warned how over one million people could be owed money back after overpaying their student loan. One reason this may happen, is if you’re put on the wrong payment plan by your employer. Another common reason is you have started paying back, even if you are not earning over the threshold.
Some people had money deducted from their pay even after fully repaying the loan, while others started repayments too early. Repayments should only begin in April following graduation, but errors can occur. If you think you’ve overpaid, contact the Student Loans Company (SLC) on 0300 100 0611 (for Wales, 0300 100 0370 and +44 141 243 3660 from overseas).
Check for unclaimed Premium Bond prizes
Figures provided to MSE show there is a collective £92million in unclaimed Premium Bond prizes. This includes eight prizes worth £100,000 each, 12 prizes worth £50,000 each and 27 prizes worth £25,000 each. There are also more than 1.8million smaller £25 prizes that have not yet been claimed.
You can use the NS&I online prize checker tool, or the Premium Bonds prize checker app on the App Store or Google Play, to see if you’ve won. You can also write to NS&I with your name, address and bond number by sending a letter to: NS&I, Sunderland, SR43 2SB. If you’re a winner, you can have the money paid into their bank account, or reinvest it into new Premium Bonds.
Don’t pay in pounds when abroad
Planning a trip abroad next year? Martin says you should always pay in the local foreign currency, due to poor conversion rates when paying in pounds. He said: “If you pay in pounds, it’s the overseas ATM or shop that does the conversion and every time I’ve tested this – and I’ve done this many times – it’s a pants exchange rate.”
When it comes to holiday cash, Martin recommends always comparing rates online, to see where you can get the best deals. He then warned against exchanging your money at the airport, as this always offers “the worst” rates – however, if you do need to do this, he recommended calling and booking your transaction ahead of time.
Do a 10-minute benefit check
Millions of households are missing out on an estimated £19billion in unclaimed benefits – and Martin has previously urged families to do a ten-minute benefit check to see what they could be entitled to. You could be entitled to help if you are on low income, if you have children, you’re a carer or you have health issues. Martin has explained how it is a common misconception that you need to be out of work to claim benefits. Use these calculators to check if you could be due help:
Don’t miss out on best saving rates
Martin has regularly called on savers to check what interest rate they’re getting on their hard-earned cash. It comes after the Bank of England started reducing interest rates, with the base rate now at 4.75%. Right now, the best cash ISAs pay more than normal easy-access accounts – but you can only put away £20,000 each tax year into an ISA.
Martin explained how you could also look into regular savings accounts, as some pay up to 8% – but you can only put away a small amount each month. If you’re on Universal Credit, you could also look at the Help to Save scheme, which is backed by the government and pays 50p back for every £1 you save. You can save between £1 and £50 each calendar month, and after four years, if you save the maximum of £50 a month, you would receive a bonus of £1,200.
Free school meal warning
MSE sounded the alarm for free school meals earlier this year – as it reminded parents that you must reapply for this help every year. The latest figures from the Government show almost two million pupils are entitled to free school meals. But the eligibility criteria can be complicated – as there are different rules for England, Wales, Scotland and Northern Ireland. It also depends on the age of your child, and sometimes you’ll need to be claiming certain benefits.
For example, if you’re in England and your child goes to a state school, they’ll get free school meals if they’re in reception class, year 1 or year 2. After that, they are eligible only if you claim certain benefits, including Universal Credit and Child Tax Credit. Read the full criteria here.
Know your return rights
Most shops have their own returns policies if you do change your mind after making a purchase – but Martin has explained that by law, you have no legal rights to take any item back, unless it is faulty. The rules are different online, where you have the right to change your mind and send the item back. He explained you have 14 days to notify the company where you bought the item from, and then upon notifying them, you have 14 days to return the product.
Don’t buy Christmas presents
Martin has long called for a “ban” on buying unnecessary Christmas presents, as he says it creates an obligation for someone to buy you a present back, when they might not be in a financial position to afford to. He said: “Sometimes the best gift is releasing people from the obligation of buying for you. This year more than ever before we have to be mindful… if you’re giving a gift to someone who may feel obliged to buy back for you and cannot afford it.”
In a similar tone, he has also warned against getting sucked into major shopping events such as Black Friday and Boxing Day, unless you’re genuinely looking to buy something and you’re getting a good deal. His theory is, if you weren’t planning on buying something anyway, then you’re not really saving any money.
Why you shouldn’t worry about your credit score
Martin Lewis has explained how no one actually has a credit score in the UK and lenders never actually see any score when you apply for credit. Each credit reference agency has its own scoring system, which is just an indicator as to whether you’re likely to be accepted for credit. Your credit score can also help you spot any inaccurate or incomplete information that could impact a future credit application. The three main credit reference agencies in the UK are Experian, Equifax and TransUnion.
