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Daily Record
Daily Record
Lifestyle
Linda Howard

Martin Lewis shares seven simple ways to save hundreds of pounds in just a few minutes

The UK’s rate of inflation has rocketed to its highest level for nearly 30 years as the cost-of-living squeeze intensifies.

Consumer Prices Index (CPI) inflation jumped from 5.1% in November to 5.4% in December - the highest since it hit 7.1% in March 1992. Household finances are being stretched across the board as gas and electricity tariffs have also seen huge price hikes - with more to come.

However, in the latest edition of the Money Saving Expert newsletter, its founder Martin Lewis has shared a staggering 22 ways to save over £2,000 in 2022 - depending on your circumstances and where you live.

And while not all of his “money makeover” tips may apply to you, or even be available in Scotland, there are several which are definitely worth looking into.

The consumer champion wrote in the newsletter: “It's January, bills are coming in, and the cost of living crunch is on. So it's the perfect time to give yourself a pain-free money makeover. Pain-free as it isn't about cutting back (though some may need that too), it's about cutting costs without lifestyle change.”

Martin also advised people take a full day to tackle the entire list or pick out the “ big and easy” ones to get you started.

You can read the full list of 22 tips on the MoneySavingExpert.com website here.

Seven money makeovers to do right now

Switch bank accounts to earn cash

Three banks are currently offering cash to encourage customers to ditch and switch their current account.

The switch is done within seven working days and transfers all your outgoings and incoming payments to your new account - full details can be found here.

  • HSBC Advance - free £150
  • First Direct - free £130, £250 0% overdraft and top-rated customer service
  • Nationwide FlexDirect - £100 and one year 0% overdraft
  • Virgin Money - 12 bottles of wine or £150 experience voucher

Help to Save bonus scheme for those on a low income

Nearly 11 million people getting Working Tax Credits or Universal Credit could be eligible for the Help to Save scheme.

Help to Save gives an unbeatable 50% savings boost on the highest amount you have in your account over two years - worth an impressive £1,200.

Find out more here.

Reduce your Council Tax bill

Martin suggests two ways to check if you’re paying too much:

Use the check and challenge system to see if you're in too high a band

Check if you're eligible for a discount - for example, if you're the only adult in the home, have a disability or mental impairment, are on a low income, have a carer and more

Find out more about Council Tax discounts here.

Check your tax code if you’re working or over State Pension age

Tax codes are the short numbers like 1257L that tell employers how much tax to take from you. Millions are wrong each year, and the rules say it is actually your responsibility to check it's correct - not your employer's or HMRC's.

You can use the MSE.com Tax Code Calculator to check if yours is right or wrong.

You can also read more about this here.

Deep dive your Direct Debits and Standing Orders

Martin said: “These two, plus hidden recurring payments (where you give firms permission to take money each month from your debit or credit card) can leave money unwittingly dripping from your bank account.

“So view now what you're paying, check if you need to or whether you can do it cheaper, and cancel if not.”

Claim back up to £280 if you are working from home

If you are an employee required to work from home, even for one day since April 2020 you could join the two million others who have claimed back up to £280 from HMRC through their tax code to help with additional energy costs.

HMRC has a very quick and easy to claim microsite on GOV.UK here and you can read more details about how much you can claim here.

Married or in civil partnership tax relief

The marriage tax allowance allows a non-taxpaying spouse to shift 10% of their annual tax-free allowance to their basic-rate (20%) taxpaying partner.

It's worth £252 this year, and backdating could land you a cheque for an extra £970.

Find out more here.

You can read all 22 tips on the MoneySavingExpet.com website and sign up for the weekly newsletter here.

Get the latest money-saving and benefits news sent straight to your inbox. Sign up to our weekly Money newsletter here.

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