January can be a tough time financially, as many of us tighten our belts after the festive period. But as the UK continues to grapple with a cost-of-living crisis, some may be struggling more than others.
That’s why banks and building societies across the country are offering extra cost-of-living support measures which could prove essential for many of us in 2023. From free financial health checks, to interest-free overdraft buffers and waiving charges for unlocking savings, there is plenty of support on offer.
Some account providers have also linked up with charities to help customers access suitable support. And while the exact help tools and support measures being offered vary depending on who you bank with, you may not even need to be a customer to access them in some cases.
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Speaking to providers early could also help to head off financial difficulties before they get worse. So, if you’re in need of some cost-of-living support, here’s what your bank or building society can do to help:
HSBC UK
The bank has a rising cost-of-living support hub and its benefit calculator tool also allows customers to check they are receiving what they are entitled to. It is also offering free financial health checks and webinars to customers and non-customers.
It also offers interest-free buffers on the first £500 of an overdraft on certain accounts for 12 months. Eligible customers need to complete an online form by March 31, 2023. HSBC UK is also waiving early closure fees on certain fixed-rate savings accounts, if customers need to access their funds.
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NatWest/Royal Bank of Scotland/Ulster Bank
The banks have contacted eight million personal customers with support and information, with over 600,000 financial health checks carried out with customers in 2022. Financial health and support teams work with customers who are struggling and support is tailored to their needs.
Support could include “breathing space” on loans and repayment plans. Free NatWest Rooster Money cards are also being offered for 12 months – subject to terms and conditions – for NatWest, Royal Bank and Ulster Bank customers, to help young people learn about budgeting and spending.
Lloyds Banking Group (includes Lloyds Bank, Halifax, Bank of Scotland)
Customers can book appointments with specially-trained staff to support them with money worries. Some 130,000 regular overdraft users have been offered a £500 interest-free buffer for six months.
Mortgage customers nearing the end of their deal can secure a new rate up to six months in advance, giving them flexibility. Customers can also select controls for gambling, spending abroad and other payments.
Cost-of-living support for Lloyds Banking Group customers can be found at Lloyds Bank , Halifax , and Bank of Scotland .
TSB
The bank’s “money worries” pages on its website and app have had over 60,000 visits since launch in July. It has launched new cost-of-living training for customer-facing staff and it also has “money confidence experts”, who can offer conversations over video chat.
Barclays
Barclays’ app allows customers to see their accounts in one place, helping them stay on top of their finances. Customers can also view a breakdown of their spending by merchant and category to help them budget and can see upcoming payments on a calendar.
Card controls allows customers to set daily spending limits. Barclays also has a money worries hub online where people can find money tips, as well as support for customers coping with a gambling addiction, living with an illness, or coping with financial loss.
It also has interest and repayment calculators , and Barclays’ Money Mentors initiative offers free budgeting sessions.
Santander UK
The bank offers support on its website and digital tools including its financial health check and budget calculator . It has been growing its financial support team and worked to ensure its chatbot helps customers effectively.
Santander provides a range of tailored options to support people in financial difficulties, with products such as mortgages and credit cards. The bank says it has proactively contacted over two million personal customers to point them towards the support available.
first direct
The bank is allowing fee-free withdrawals on its fixed-rate saving products, if savers need to access their funds. It has a £250 interest-free overdraft facility on its 1st Account, but customers can opt in to increase this to £500 for 12 months as part of the bank’s cost-of-living support.
The bank’s website has information to help with budgeting as well as dealing with financial difficulty. It also has “money coaches” offering support and has partnered with charity Shelter to help provide increased access to support for renters.
First Direct has also been working with debt charity StepChange to help bank staff enhance their skills.
Nationwide Building Society
Nationwide has a freephone cost-of-living hotline (0800 030 40 66) for members experiencing money worries. The Society is also holding virtual and in-branch events for members, providing practical help with managing money.
The Society is proactively contacting some members who have repeatedly used their overdraft for a prolonged period and putting them on six-month interest-free periods.
Virgin Money
The bank partnered with charity Turn2Us to offer access to a free online benefits calculator and introduced a dedicated cost-of-living hub to its website. Virgin Money also directs people who need extra help towards support services, whether they are a customer or not.
The bank recently teamed up with digital inclusion charity Good Things Foundation to help tackle digital poverty, giving people access to free sim cards provided by the National Databank programme. This is similar to a foodbank but provides free mobile data, texts and calls for people in need.
Virgin Money has also recently joined forces with Youtility, a subscription management platform, to help customers cut costs.
Metro Bank
The bank has an online support hub and in the months ahead plans to proactively to make contact with customers it has identified as needing extra support before they fall into arrears. Its specialist team helps customers experiencing financial difficulty with support tailored to their circumstances.
Yorkshire Building Society
The Society has a dedicated webpage with resources including budgeting tools. It also has access to organisations such as National Debtline and Citizens Advice, with some of its branches having Citizens Advice advisers within.
Citizens Advice appointments in branches are open to whole communities, not just Yorkshire Building Society customers.
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