N182)How to save money with low income in 2023

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In this video, we will talk about How to save money with low income in 2023

1: Haggle or switch broadband and mobile phone providers

Our survey of more than 5,000 customers found that more than seven in 10 who switched to a new provider at the end of their contract made a saving of between 13% and 16%.

If you're happy with your existing provider, it's worth negotiating. Haggling typically leads to savings between 5% and 7%. 

Don’t be daunted – haggling is invited and encouraged by telecom providers. Build your case by getting price quotes from rivals first.

2: Check if you’re eligible for a discounted broadband tariff

Social tariffs are special discounted broadband deals available for certain low-income customers. You’re likely to be eligible if you receive a means-tested benefit, such as universal credit or pension credit.

Social tariffs start at just £12 a month and are offered by a range of providers. For a full list, head to our online guide. Eligible customers could save £250 a year. Social tariffs also don’t usually have setup fees and aren’t subject to price rises.

3: Shop around for groceries

Every month, we scrutinise thousands of grocery prices to reveal the cheapest supermarket. We compare how much the biggest supermarkets charge for a trolley of goods, including everything from bread to toothpaste – and the differences can be shocking.

For example, in November 2022 shoppers would have paid 35% more at Waitrose, the priciest supermarket, compared with Aldi, which was the cheapest. 

4: Avoid 'express' supermarkets

Doing your weekly grocery shop at a big supermarket is often much cheaper compared to their express counterparts.

In 2021, we compared costs at Tesco Express and Sainsbury’s Local with the same items at their supermarket counterparts.

Over the course of a year, we found the average weekly difference added up to £322 more for Sainsbury’s and £279 more for Tesco.

5: Time your tech purchases

Home and tech appliances can be cheaper at different times of the year. In a year-long investigation, we found that some products such as TVs followed a clear pattern.

Our investigation tracked prices from June 2017 to May 2018, and all three TVs we looked at showed a distinct downward price trend. 

Meanwhile, the spring months were a good time to buy the three popular printers in our investigation – probably down to the academic year ending.

6: Reduce your taxable income

Contributing to a workplace or personal pension can be a great way of reducing your taxable income. Basic-rate taxpayers automatically get 20% tax relief on the money they put into their pot, so a £100 contribution would only cost you £80.

For higher and additional rate taxpayers, you can claim an additional 20% or 25% respectively by filing a self-assessment tax return.

If you’re an employee, don’t forget about salary sacrifice offers, such as season ticket loans and cycle-to-work schemes, which let you save tax by swapping pay for perks.

7: Compare fuel prices

Traditionally, supermarkets were cheaper for fuel, but that’s no longer necessarily the case. To find the cheapest fuel nearby you can use sites such as petrolprices.com or the function in some sat nav apps. Petrolprices.com claims its users save an average of £220 each year.

Premium or ‘super’ unleaded petrol tends to cost 10p to 15p more per litre than regular unleaded and contains greater amounts of performance additives. It won’t harm your car to use premium fuel, but it’s typically only beneficial in high-performance cars that require a higher-octane rating on petrol.

8: Change your driving habits

The way you drive impacts the efficiency of your car and, as a result, how much you need to spend on petrol. 

Harsh throttle inputs and acceleration can increase your fuel use. Keeping the revs between 1,500rpm and 2,500rpm (petrol engine) and 1,200rpm and 2,000rpm (diesel engine), while avoiding labouring the engine, will help your fuel last longer. 

Changing gears earlier and short shifting (skipping gears, such as going directly from first gear to third) will also help efficiency, again, providing you don’t labour the engine, while braking unnecessarily can hamper your car’s efficiency.

9: Claim refunds for delayed journeys

In 2019-20, only 37% of eligible passengers claimed a refund on their delayed or cancelled rail journeys. 

Most train operators offer a 50% refund on journeys delayed by 30 minutes or more, and a 100% refund on journeys delayed for more than an hour or cancelled altogether. Several rail companies now also offer compensation for 25% of the value of your ticket for delays of 15 minutes or more.

You can also claim for delayed and cancelled flights. Unlike rail delays, you won’t get money back if the reason is beyond the control of the airline – such as bad weather. 

10: Don’t miss out on benefits

If you’re over state pension age and on a low income, check if you’re eligible for pension credit. This can act as a gateway to other benefits, including a free TV licence and electricity bill discounts. 

You can check your eligibility for other benefits by using the free tool at entitledto.co.uk.

11: Make the most of Isas

The end of March and the start of April is known as ‘Isa season’. This marks your last chance to use up whatever’s remaining of your £20,000 tax-free Isa allowance.

This heightened demand can lead to providers upping their rates to attract new customers, so it’s worth hunting around in April for good deals. However, it’s still a good idea to use up your remaining 2022-23 Isa allowance in March before it’s lost.

12: Switch bank accounts

Switching your current account provider is a quick and simple way to earn some free cash.

The most generous offers we’ve seen recently were £200 from HSBC and £175 from First Direct (a Which? Recommended Provider for current accounts).

You’ll need to use the Current Account Switch Service for these deals, which involves closing your old account and meeting any other conditions such as a minimum deposit.

13: Stock up when you can

We all know there are groceries that seem like they’re on offer nearly as often as they’re at full price. But did you know prices can fluctuate by up to 284%?

Lavazza Qualita Rossa Ground Coffee (250g) at Ocado had the dubious honour of being the product with the most dramatic price difference in our investigation. If bought on a good day in 2020 (of which there were 63), it would have cost you £1.30. But if you unknowingly picked one of the 130 bad days, you would have been stung for a whopping £5. Ocado told us the fluctuation in price was ‘a technical error’, which it then fixed.

This so-called ‘yo-yo’ pricing means it’s worth stocking up when items you buy regularly are discounted.

14: Don’t automatically renew your insurance

The ban on the insurance ‘loyalty penalty’ in 2022 brought an end to new customer discounts, but it’s still worth shopping around when your policy is up for renewal.

Use the best quotes you’ve gathered to negotiate with your insurer and take your business elsewhere if your insurer doesn’t improve its offer.

Some 48% of Which? members who haggled in the first six months of 2022 made savings.

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