The Treasury Select committee met yesterday to hear more evidence on the future of the Lifetime ISA.

The committee first met in February and had a range of speakers to discuss the viability of the product, which pays an annual bonus to savers of up to £1,000.

Much is up for discussion, including the extreme solution of abolishing the product altogether.

So what is the Government thinking on this? The committee heard evidence from MP Emma Reynolds, the economic secretary to the Treasury. 

Unfortunately, her comments didn’t provide much information on whether the LISA will be improved upon. 

Reynolds told the committee: “Any changes that could be made to improve that situation would cost money. That money would have to be found from somewhere else.”

What is the Lifetime ISA?

The Lifetime ISA or LISA is designed for people who wish to save a house deposit for their first home purchase. Alternatively, savers can use the LISA as an alternative (or addition) to a pension. 

If the saver doesn’t use it for a house deposit, then the money can’t be withdrawn until they turn 60. 

Savings of up to £4,000 a year get a 25% bonus – up to £1,000. But any withdrawal made that doesn’t include the above reasons incurs a 25% penalty. The problem here is the penalty is made on the whole amount, not just the bonus. This means in effect someone who takes money out gets less back than they put in. 

But although this aspect has drawn many critics, who have called for the penalty to be lowered to 20% – which would negate the losses – Reynolds, told the committee this was a feature not a flaw of the product. 

She told the committee: “Having rules around a penalty if you withdraw are in line with unauthorised withdrawals of a pension. The penalty of withdrawing your pension earlier is much heavier than the 25% in this case.  

“We can’t have a risk-free option of investing for the long-term, but if you take your money out, there is not a charge. We would not have that situation.”

The LISA also presents first-time buyers in areas such as London and the South East with an issue because the cap on property purchase prices is £450,000 – which prevents some savers from using the product in areas where prices are very high. 

Future of the LISA

Brian Byrnes, head of personal finance at finance app Moneybox, spoke exclusively to Mouthy Money yesterday ahead of the next committee. You can hear him explain all about the LISA – its past and its future – in the latest Mouthy Money podcast episode. 

Having given evidence at the committee hearing in February, Byrnes told the podcast that Moneybox anticipated some action from the Government on the LISA in the next Autumn Budget, later this year. 

On the back of the committee hearing, Byrnes added: “Yesterday’s Treasury Select Committee session highlighted the continued debate around the future of the LISA. While it’s encouraging to see it on the agenda, we believe now is the moment to take action. 

“Small, pragmatic changes – such as increasing the property price cap and adjusting the unauthorised withdrawal penalty – would ensure the LISA continues to deliver for first-time buyers in a fast-changing economic landscape. These aren’t radical changes – they’re common-sense updates that would make a great product even better.”

Byrnes also highlights a less-well-understood issue for the LISA – why major legacy banks don’t offer the product.

“It’s also important to clear up a common misconception: banks don’t avoid offering the LISA because of mis-selling concerns,” he says. “The reality is that administering a LISA is significantly more complex than other ISAs due to the need for real-time connections with HMRC. 

“For many larger institutions with legacy tech infrastructure, this operational burden – combined with the £4,000 annual contribution limit and lower average income of LISA savers – makes it commercially challenging. By addressing these barriers, we can unlock greater provider participation and wider access.

Ultimately Byrnes believes the LISA is a good product worth improving. 

“The Lifetime ISA (LISA) has been one of the most impactful financial products introduced in recent years, helping young people across the UK take control of their financial futures – particularly when it comes to buying their first home. Since its launch in 2017, the LISA has empowered a generation to build long-term savings habits, with the confidence that they can work towards both homeownership and long-term financial security.

“At Moneybox, we’ve seen this impact first-hand. Over the past year alone, we’ve recorded a 34% increase in customers opening a LISA. Importantly, 80% of our LISA savers earn £40k or less, demonstrating how vital this support is for those who need it most. These are hardworking individuals striving for financial independence, and the LISA is giving them the boost they need to get on the property ladder.

“While much focus is rightly placed on increasing housing supply, this remains a long-term goal. In the meantime, we urge the Government to invest in near-term, practical solutions that support aspiring first-time buyers today – helping them save, build deposits, and access affordable mortgages.

“We encourage policymakers to build on the solid foundation already in place and future-proof a product that is delivering real, measurable impact for young people nationwide.”

SAVING THE LIFETIME ISA: LISTEN TO THE FULL PODCAST EPISODE

Photo by cottonbro studio

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In our first instalment, we meet Nigel Yates, lead portfolio manager for the AXA UK Sustainable Equity Fund, at AXA Investment Managers, a fund that recently adopted the ‘Sustainability Improver’ label under the FCA’s Sustainability Disclosure Requirements (SDR) regime.*

How does AXA UK Sustainable Equity Fund invest?

We invest in high quality companies with above average growth characteristics that are demonstrating a clear and credible commitment to reducing their carbon emissions to achieve net zero emissions by 2050.

The investment approach centres around investing in companies who have strong long-term growth potential by utilising our People, Planet, Progress thematic overlay to identify companies that are enabling a healthier, greener, more advanced society.

Attractive end markets alone is not enough, however.

We seek out companies that have the ability to deliver growth year after year as a result of their strong business model, culture of innovation and customer focus.

We term this durable profitability and it is at the centre of our investment analysis.

The aim is to have a balanced, diversified portfolio of sustainable growth companies with a low turnover approach and a focus on long-term active company ownership.

Where are you seeing opportunities?

Right now, in our view, the valuation and growth opportunities feel most apparent in the more domestically orientated FTSE 250 Index.

‘Higher for longer’ interest rates have meant companies in sectors such as Real Estate and Building Materials are trading at valuations not seen for many years.

We are terming this the ‘lost decade’ and it includes high quality companies solving environmental and societal issues where demand has been held back by short-term economic uncertainty.

The fund is exposed to Marshalls, Grainger and Genuit where we feel there is the potential for strong recovery.

If the Government can free up planning or if interest rates are able to be cut faster than the market currently expects, these companies could be in demand once again with investors.

What makes you decide to buy into a stock?

This comes down to following the process highlighted earlier. The science is identifying the right companies with growth opportunities and financial metrics such as strong balance sheets, high levels of recurring/repeating revenue and strong cash generation.

We also use our own proprietary methodology for screening companies with the appropriate carbon reduction policies and ESG practices that meet our sustainability objectives.

The art comes from our interactions with management and the valuation we are prepared to pay for the business. We will not invest until we have met the senior leaders of the business and get entirely confident that they can deliver on their growth plans.

We look for businesses with a culture that prioritises a ‘customer first’ mindset and, of course, innovation is crucial.

When all these factors combine with an exciting valuation, we will invest but until it does we are quite happy to remain patient watching from the sidelines.

Check out the Mouthy Money podcast

Tell us about recent changes to the portfolio?

Two companies that have met the criteria described above and have been added to the portfolio are Games Workshop and XPS Pensions.

Games Workshop (GAW) is an unusual company. It is run very much like a family business with a very long-term mindset. Shareholders are treated as less important than their hobbyists (customers), which of course they are!

The result is a business with wonderful financial metrics – growth, high margin, high return on capital employed (ROCE) all resulting in strong cash generation. I think most importantly however is the fact that it feels like Warhammer is on the cusp of becoming ‘mainstream IP’.

It takes a long time to scale a hobby properly. As the number of players grows so does the enjoyment of the game. This gives them pricing power and an ability to expand their monetisation opportunities. GAW has proven an ability to grow sustainably over the last 10 years and the next 10 could be even more fruitful for the business.

There is also lots to like about XPS Pensions which is a specialist pension consultancy offering advice and administration services to UK trustees and pension schemes. It has high levels of recurring income, an inflation-linked fee model, low client attrition, a well-diversified client base and regulatory change continues to be a strong driver of new business.

The market share opportunity within the pensions industry is significant and the adjacent insurance industry could offer another material growth runway in the fullness of time. The level of opportunity for this business could sustainably deliver double-digit revenue growth over the medium-term.

What is your highest conviction view right now?

In our view the market is very short-term focussed right now. Benefit of the doubt and consistent execution seem to count for nothing if a company can’t in the short term disprove a market fear.

This applies right now to Trainline which is the leading independent rail and coach platform selling tickets to millions of customers worldwide.

The recent Government announcement of a ‘Great British Railway’ ticketing website and app to rival Trainline’s offering has caused investors to panic. This is despite the last government developed App being the infamous ‘Track and Trace’ one developed during Covid.

In the fullness of time, it is likely that Trainline’s superior technology and customer focus will ultimately prevail but in the meantime, patience is required.

My fear is that the valuation disconnect with the fundamentals of this business may not go unnoticed and another Great British technology success story is lost before it reaches its full potential.

What do you think of efforts to boost the UK stock market?

I think some of the performance and valuation differential that the UK stock market has experienced relative to other international venues is related to capital flows.

There has been the much-publicised decline of UK pension allocations in favour of pursuing ‘US exceptionalism’.

I’m sure reversing this has been thought about in depth by the UK Government as a healthy stock market is essential to a prosperous domestic economy, which provides the necessary tax revenue to fund essential public services.

Whilst some of the solutions to resolve this might be complicated there are a number of things that can be done in the meantime.

If the Government does nothing else but provide economic stability and remove barriers to invest, such as regulation and ponderous planning decisions, then this will provide a more desirable background to attract capital flows back into the UK market.

What do investors get wrong about your asset class?

The perception of the UK is that it is an old economy, defensive market. There are however lots of high growth, high quality companies with digital first business models.

We also lead the world in corporate governance practices which provides plenty of opportunities for a UK-based sustainable fund.

What is the best advice you could give to an investor in your fund?

Patience is the key attribute that an investor in the stock market must have. Markets tend to underestimate the power of long-term compounding because of a structural focus on short-term earnings.

The best returns come from compounding but compounding by its very nature takes a while, so it’s easy to ignore. Our approach remains centred on owning good quality businesses that can reinvest and compound their returns over time.

I remember when I first invested in RELX, I wanted something that could consistently grow despite the economic conditions. At the time, it was considered by the market as being slightly dull. History has shown that was wrong!

We as an industry are guilty of trying to find the best performer in any given year. However, the best companies to own in my experience are those that deliver solid (not best) returns year in, year out.

FUND SNAPSHOT: AXA UK Sustainable Equity Z Acc

• Fund size: £66.09M
• Ongoing charges: 0.84%
• 5-year cumulative performance: 27.55%
• Since launch: 98.82%

TOP 5 HOLDINGS

1. AstraZeneca 5.55%
2. London Stock Exchange Group 4.28%
3. RELX 3.87%
4. Compass Group 3.33%
5. HSBC Holdings 3.29%

TOP 5 SECTORS

1. Financials 22.37%
2. Industrials 18.31%
3. Health Care 14.19%
4. Consumer Discretionary 13.99%
5. Technology 9.61%

Figures correct as of 28/02/25.

Source: https://funds.axa-im.co.uk/en/individual/fund/axa-uk-sustainable-equity-fund-z-accumulation-gbp/#performanceRisk

Past performance is not a reliable indicator of future results.

Companies shown are for illustrative purposes only and may no longer be in the portfolio later. It does not constitute investment research or financial analysis relating to transactions in financial instruments, nor does it constitute an offer to buy or sell any investments, products or services, and should not be considered as solicitation or investment, legal or tax advice, a recommendation for an investment strategy or a personalised recommendation to buy or sell securities.

*Please visit AXA’s Fund Centre where further information is included in the Consumer Facing Disclosure (CFD) Document which outlines the Fund’s sustainability approach – https://funds.axa-im.co.uk/en/adviser/fund/axa-uk-sustainable-equity-fund-d-accumulation-gbp/#documents

Photo by P. L. on Unsplash

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When your finances are overwhelmed, looking for quick debt fixes to ease the pressure is natural. But some of these solutions while tempting can backfire, leaving you with even more financial problems.

In today’s blog post, we’ll explore common ‘quick debt fixes’ that may seem helpful in the short term but can do more harm than good. 

1) Payday loans 

Payday loans promise fast cash, but they come with extremely high interest rates and short repayment periods, often trapping borrowers in a cycle of continuous debt. 

2) Balance transfers 

While transferring debt to a 0% interest card sounds appealing, balance transfers often come with fees and only delay the problem. If the promotional period ends before you pay off the balance, you’re back to high interest rates that are sometimes worse than before. 

3) Taking out new credit cards 

Opening new credit cards to manage existing debt creates more liabilities and often leads to more spending. It can also lower your credit score if you miss payments or accumulate more debt. 

4) Taking money from children’s piggy banks or savings accounts 

It may feel like an easy, harmless way to get money, but taking money from your children’s savings sets them back financially and can leave you with feelings of guilt, shame and regret. 

5) Borrowing money from family and friends 

Turning to loved ones for help might seem like the safest option, but money issues can strain relationships. If you’re unable to repay the loan on time, it can create tension and damage trust. 

6) Loan sharks and unlicensed lenders 

Desperation can push people toward illegal lenders who charge extreme interest rates and resort to intimidation or threats to collect payments.  

7) Overdrafting your bank account 

While using your overdraft can offer short-term relief, fees and interest charges add up quickly. This approach only deepens your financial trouble over time. 

8) Pawning valuable items 

Selling or pawning belongings may provide a quick cash injection, but you often get only a fraction of the value and risk losing items that are important to you. 

More from Tolu Frimpong

What to do instead 

If you’re struggling with debt, there are healthier, more sustainable options that can help you regain control without putting your financial future at risk.  

1) Contact debt charities or nonprofit credit counseling services 

Organisations like StepChange, Citizens Advice, or the National Debtline offer free, professional advice and support for creating a plan to tackle your debt. 

2) Speak to your creditors early 

Many creditors are willing to negotiate lower payments or temporary interest freezes if you explain your financial difficulties early on. 

3) Arrange a payment plan 

Setting up a debt management plan through a credit counseling agency can consolidate your payments into one manageable monthly amount. 

4) Explore debt consolidation 

If you have multiple debts, consider consolidation loans from reputable lenders to simplify your payments and reduce interest rates. 

5) Access government assistance programs 

Depending on your location, emergency grants, hardship programs, or benefits may be available to help ease the burden. 

6) Sell unused items or take up freelance work 

Instead of pawning valuables, try selling unused items online or taking up freelance or part-time work to generate extra income. 

7) Seek emotional and financial support 

Dealing with debt can be emotionally draining, so it is essential to speak to family, friends, or mental health professionals to get the support you need as you work through your challenges. 

When you’re desperate to manage debt, it’s important to resist the urge to take shortcuts that could worsen your financial situation. While the quick fixes listed above may offer temporary relief, they often come with long-term consequences. 

Instead, focus on sustainable solutions like seeking professional help, negotiating with creditors, and creating a repayment plan that works for your situation. 

Photo credits: Pexels

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With the coldest winter months fast approaching, energy bills can quickly become a significant financial burden. 

With smart planning and simple changes, however, you can reduce your energy costs and keep your home warm without breaking the bank. 

Here are some tips to assist you.

1. Insulate your home

Proper insulation is one of the most effective ways to reduce heat loss, keeping your home warmer and reducing the need for constant heating. Consider the following:

Loft insulation: Up to 25% of heat is lost through the roof. Installing or topping up loft insulation can significantly reduce this.

Wall insulation: If your home has cavity walls, insulating them could save a substantial amount on your heating bills.

Draught-proofing: Seal gaps around windows, doors and chimneys to prevent cold air from entering and warm air from escaping. Draught excluders, weather stripping and door sweeps are inexpensive and effective.

2. Upgrade your heating system

Boiler efficiency: If your boiler is more than 10 years old, it might be time to replace it with a more efficient model. Modern condensing boilers are more energy-efficient and could save you hundreds of pounds annually.

Smart thermostats: Install a smart thermostat to control your heating more efficiently. These devices learn your schedule and adjust the temperature accordingly, ensuring you only use energy when you need it.

3. Be smart with heating

Turn down your thermostat: Lowering your thermostat by just 1°C can cut your heating bills by up to 10%. Aim to keep your living room at around 18-21°C and bedrooms slightly cooler at 16-18°C.

Use heating zones: If possible, only heat the rooms you use regularly. Close doors to unused rooms to keep the heat where it’s needed most.

Time your heating: Set your heating to turn on 30 minutes before you wake up and off 30 minutes before you go to bed. This ensures warmth when you need it without wasting energy.

4. Maximise natural heat

Open curtains during the day: Let the sunlight in to naturally warm your home. Close them at dusk to keep the heat in.

Use reflective foil: Place reflective foil behind radiators on exterior walls to bounce heat back into the room, reducing heat loss through the walls.

5. Cut electricity usage

Switch to LED bulbs: LED bulbs use up to 80% less energy than traditional incandescent bulbs and last much longer.

Unplug stand-by devices: Devices left on standby can account for up to 10% of your energy bill. Unplug electronics or use a smart power strip to turn them off completely.

Use energy-efficient appliances: If you’re replacing appliances, choose ones with a high energy efficiency rating. They may cost a bit more up-front, but will save money in the long run.

6. Consider renewable energy options

Solar panels: Although the initial investment can be high, solar panels (as discussed in this article) can significantly reduce your energy bills over time. The government offers financial incentives for renewable energy installations, which can help offset the cost.

Government grants: Check if you qualify for government grants or schemes like the Energy Company Obligation (ECO) to help cover the cost of energy-efficient improvements.

7. Monitor and compare energy prices

Switch energy providers: Regularly compare energy providers to ensure you’re on the best tariff. Websites like Uswitch or MoneySuperMarket make it easy to compare deals.

Smart meters: If you don’t already have one, consider getting a smart meter. It provides real-time data on your energy usage, helping you identify opportunities to cut back.

Off-peak tariffs: Some energy companies (e.g. Octopus Energy) – offer cheap off-peak tariffs. These can deliver substantial savings if deployed correctly. Typically overnight rates are much cheaper – so if you run appliances such as washing machines at these times you may be able to cut energy bills substantially. If you have a home storage battery you can charge it at off-peak rates for use at other times when electricity is more expensive.

8. Develop energy-saving habits

Wash clothes at lower temperatures: Washing at 30°C instead of 40°C can save energy and money. Only run the washing machine with full loads.

Avoid using tumble driers as they consume a lot of electricity. Hang clothes outside to dry or use an airer.

Avoid overfilling the kettle: Only boil the amount of water you need. Overfilling wastes energy.

Shorten showers: Reducing your shower time by just a minute can save money on both your water and energy bills, especially if you have an electric shower.

9. Seek financial help if needed

If you’re struggling to pay your energy bills, you may be eligible for assistance:

Warm Home Discount: This is a one-off discount on your electricity bill, usually given between October and March. You’re eligible if you get the guarantee credit element of pension credit or you have a low income and high energy costs. For more details, visit the Warm Home Discount information page.

Winter Fuel Payment: If you were born before 23 September 1958, you could get £200 or £300 to help pay your heating bills. But as from this year (2024/25), only those on pension credit or certain other benefits will be eligible. Visit this government website for more info.

Cold Weather Payment: You may get a payment if the average temperature in your area is recorded as, or forecast to be, 0°C or below for seven consecutive days. Again, only those receiving certain benefits are eligible. See this web page for more info.

Help from the Household Support Fund: This is money provided to councils by the government to assist pensioners and others on very low incomes. You will need to contact your local council to check if you are eligible.

10. Plan ahead

Finally, start thinking about next winter as soon as possible. Energy-saving home improvements made during the spring and summer can help spread the cost and ensure your home is ready for the next cold season.

By taking the steps above, you can keep your home warm and cosy this winter without seeing a dramatic increase in energy bills. Small changes can make a big difference in energy efficiency and financial savings.

As always, if you have any comments or questions about this article, please do leave them below.Nick Daws writes for Pounds and Sense, a UK personal finance blog aimed especially (though not exclusively) at over-fifties.

Photo credits: Pexels

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Q Is it too late to start a pension? I’m turning 40 next year and I’m worried I should have started earlier. 

A It’s never too late to start saving into a pension and turning 40 is a great time to focus on your retirement planning. With many working years ahead of you, you still have ample opportunity to build up a significant pension pot, particularly if you take proactive steps now. 

You might already have a pension you don’t know about too. If you’re currently employed and earning over £10,000 a year, it’s likely you have a workplace pension with your current employer and possibly others from previous jobs, thanks to the introduction of Auto-Enrolment in 2012.  

To make sure you’re not leaving any hard-earned savings behind, consider using the government’s free Pension Tracing Service or contacting your former employers directly.  

Once you have tracked down any old pensions, you might want to consider consolidating them into one pot. 

If you’re earning below the auto-enrolment threshold or are self-employed, you can still save into a pension. A private pension, such as a personal pension or self-invested personal pension, are easy to set up and typically offer flexibility in the amount you have to contribute as well as investment choices to match your risk tolerance and retirement goals. 

Mouthy Money Your Questions Answered

Saving into a pension now ensures you have a source of income when you retire, rather than having to continue working in retirement or relying solely on other investments.  

While investments like property or ISAs can be valuable in retirement, it’s important not to rely solely on one type of asset. Diversifying your savings across different vehicles, including a pension, ensures you have multiple sources of income to draw from in retirement. This approach can help protect you against market fluctuations and ensure a more stable financial future. 

One major benefit of contributing to a private pension is the tax relief offered by the government. For example, if you’re a basic rate taxpayer, every £100 you contribute is effectively increased to £125 due to HMRC’s 25% top-up. Higher-rate taxpayers can claim even more, making pension contributions a very tax-efficient way to save for retirement. 

The key to building a substantial pension is consistency. Regular contributions, even if modest, can grow significantly over time, especially when combined with tax relief and potential employer contributions. Starting at 40 means you have time on your side to benefit from compound growth, so the earlier you start, the better prepared you’ll be for a comfortable retirement. 

Becky O’Connor is the Director of Public Affairs at leading online pension provider PensionBee. She is a personal finance and investment expert and award-winning journalist with two decades of experience in journalism and communications. Becky is the Telegraph’s ‘Pensions Doctor’ and is also a columnist for the i paper. Prior to joining PensionBee, Becky was Head of Pensions at Interactive Investor, and previously acted as a spokesperson for Royal London, the mutual insurer. Becky is also the co-founder of the ethical personal finance website, Good With Money; the author of a book on sustainable investment, The ESG Investing Handbook, Chair of the Ethical Advisory Committee for Castlefield Investment Management and a fellow of the Royal Society of Arts. 

Photo credits: Pexels

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I have broken up with British Gas. For the second time in my adult life.

The first time was in fact years ago when I moved into my first flat in London. I inherited British Gas as an energy supplier from the previous tenant.

This was back in the days before the pandemic and the cost-of-living crisis when energy deals were still (relatively) affordable, and there was a good breadth of deals in the market.

That was why I broke up with them at the time – purely because the energy price they offered was not competitive. We switched to Octopus Energy.

No hard feelings etc, but I do distinctly remember British Gas sending me a ridiculous mess of paperwork which I thought…um…bit much?

Here’s the post I put on Twitter (now X) at the time:

In those heady days we paid around £35 a month to heat and supply electricity to our one bed flat. Oh to have such bills again!

In the intervening years, my wife Ellyn and I have moved out of London, bought a house, got a dog and a baby and such.

Roll forward almost five years to the day, and history has repeated itself.

We bought our home during the midst of the cost-of-living crisis, when energy switching was not a thing, so we (for the second time) inherited British Gas as a supplier from the former owner. We didn’t bother switching, and that was our first mistake.

Now, regular readers may remember I have actually written about British Gas in this column recently. Although I didn’t name check them at the time. Not so lucky today, guys.

Feel free to read it and come back, but to cut a long story short we used more energy than anticipated last winter thanks to the arrival of our son Cosmo. This led to us going into quite a lot of energy debt with British Gas. £500 of it.

After a bit of careful calculation and negotiating, I got them to reduce our direct debit to £165 instead of £200. Job done, I thought.

British Gas strikes back

The story did not unfortunately end there, dear reader.

Every month since I reached that agreement with British Gas, it has attempted to increase our direct debit back above £200. This was despite, as expected, we were quite quickly vanquishing our energy deficit. At the most recent billing we had got it to £325, which had only taken about three months. Great.

Despite that, British Gas would not back down from try to force us to take a higher direct debit. Every month I would receive an email telling us our direct debit was increasing.

This reached a breaking point two weeks ago when this happened yet again. I decided enough was enough.

I called the firm to ask why it kept doing this. It was explained to me that they were simply basing forward charges on what we had previously used.

This was despite the fact that I had made several quite significant changes to our home to improve our energy efficiency and was pretty certain we’d be using a lot less energy moving forward (and as evidenced by our more recent usage).

No, British Gas were determined that I should be paying £200 a month for our energy. In fact, in the most recent episode they increased the direct debit even higher to £210.

The trouble here is that the company had us over a barrel, because we owed £325. Owing this money meant we were not free to leave and switch to a different provider.

We had to pay the debt first.

Fed up with the intransigence of the firm, I decided enough was enough. Despite needing cash for something else (tyres for our car if you must know) I decided to clear the debt and leave.

The ol’ switcheroo

There is good news and bad news in the energy market these days.

The bad news is the price cap has increased again. It has risen 10% from £1,568 to £1,717 per year for an average household usage level.

The good news, however, is that switching is back. We locked in a deal with Octopus Energy (hello old friend) which charges us £139 a month (based on average per-unit usage). Of course, this is still subject to change if we use more energy, but having a bit of surety in our bills (and not paying £210 a month) is a win.

If you want to switch yourself, then try a price comparison site to see what the best deal is. I don’t believe Octopus was the absolute cheapest but having been a customer before I was aware they have quite energy whizzy products and were generally quite good.

Octopus is also nice because it uses our smart meter readings to feed into an app which can tell me day-by-day usage almost immediately. We can track our consumption much more closely and keep on top of it.

I like the fact we can closely monitor usage with the app, and head off potential debt accruing before it gets out of hand.

More from Edmund Greaves

Bad British Gas

This is very much a personal review and experience. I am sure there are literally millions of ecstatic British Gas customers out there. Positively joyous. But I was not.

• I was tired of the fact that they let us run up debt over six months and didn’t lift a finger until we were badly in the red. But you can bet they were proactive as soon as we owed them a decent wedge.

• I was tired of the computer says no attitude that didn’t account for what was clearly a decrease in usage on our part.

• I was tired of doing a monthly dance to get them to decrease our direct debit to a more acceptable level – a level which was evidently bringing our debt down quickly.

• I was tired of having a smart meter that was basically useless to us despite feeding valuable usage data back to the company.

I am sure Octopus will have its own foibles. We shall see.

It gets weirder

As soon as we started our switching process, which was extremely easy, seamless in fact – British Gas started acting like a spurned lover.

I was texted three times in three hours saying it had an “exclusive offer” for me.

They rang me. I got emails. I was even approached by British Gas Twitter bots in the above tweets. It was an absolute bombardment of contact.

In other contexts, this is referred to as ‘love bombing’.

The company has mere hours to get me to change my mind before the switch takes hold, so bombards me with attempts to persuade me not to leave. It is an abysmal thing to do.

The thing that really pains me (and is often something I think wistfully about when it comes to personal finance) is that we are as ever in a fortunate position to have some cash to get out of the situation. Others don’t and so will be at the mercy of this kind of behaviour.

But my counsel, as it ever was with these matters, is do not be afraid to stand up to companies you feel are treating you poorly. They have not earned your good graces or submission to unfair practices.

So goodbye British Gas. It’s not me, it’s you. I was just trying to keep the lights on.

LISTEN: Edmund catches up with Chris as they discuss his energy bills, tipping, and cruise liners in this week’s Mouthy Money Podcast

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Pensions – let’s talk about it fellow millennials and Gen Z’s! It is understandable that the topic of pensions may not fill one with excitement, but it is certainly one of the most crucial considerations when planning your financial future.  

What is the pension landscape in the UK? 

The average private pension pot size across the UK sits around £20,077 according to pensions saving app Pension Bee¹.

These numbers will be skewed according to one’s region, age, and gender, but all things considered an average pension pot of around £20k would provide an income a little over £1,000 per year².  

The state pension, which is currently accessible at 66, provides a weekly income of £221.20, or £11,502 per year^3,4.  

It is impossible to predict the future or try to imagine the state of your finances in your 50s and 60s but a good place to start is to ask yourself: 

“Could I survive on X income per year?” or better still, 

“Could I live the life I would desire in my latter years on X income per year?” 

If the answer is no, then there’s no time like the present to make a solid plan, and here are a few reasons why: 

1. Allow COMPOUNDING to take effect 

The earlier you start contributing towards a pension, the less you will have to contribute in the long run.

The power of compounding means years or decades of interest earned also earn interest leading to exponential growth.

Below is a simple illustration of the compounding effect: 

Person A 

• Starts contributing to their pension at age 40 

• They contribute £500/month, with an assumed annual rate of return of 6% 

• Their total contributions = £105,000, and their total interested earned = £251,177 

• Their total pension pot by age 60 = £231,020 

Person B 

• Starts contributing to their pension at age 25 

• They contribute £250/month, with an assumed annual rate of return of 6% 

• Their total contributions = £120,000, and their total interested earned = £106,783 

• Their total pension pot by age 60 = £356,177 

2. Build good FINANCIAL HABITS earlier 

It is exceedingly tempting to lead a YOLO life when you’re young as those latter years seem so far away! But if you can start to build good financial habits when you start earning, it is much easier to maintain throughout the years.  

By setting up automatic pension contributions as soon as you start working, you’ll be surprised how you work with the remaining pay after your pension contributions have been made.

Just remember, everything healthy in life is about striking the right balance! Fun doesn’t have to be sacrificed completely for the sake of your future finances, nor does your financial future need to be sacrificed for the fun of today.  

More from Finance Dee on Mouthy Money

3. There are no STATE PENSION guarantees 

As much as we can hope that the state pension will still be in existence by the time we reach our late 60s, we need to be mindful that there is no guarantee.

Bearing that in mind, your retirement finances could potentially be based upon what you accumulate in your private pension pot alone. T

herefore, make a retirement plan and run the numbers with and without the state pension in your calculations so you have a best and worst case scenario to consider. 

¹ https://www.pensionbee.com/uk/pension-landscape 

² https://www.legalandgeneral.com/retirement/pension-drawdown/ 

³ https://www.gov.uk/new-state-pension 

⁴ The state pension is based on one’s eligibility including national insurance contributions and age. 

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Scams are everywhere these days in the UK, and they’re getting sneakier by the minute. Brits lost over £1 billion to scammers in 2023, according to trade UK Finance’s most recent fraud report.

With tech getting better, so are the scammers, and their tricks are harder to spot than ever. One minute you’re getting an email that looks exactly like it’s from your bank, and the next, a dodgy phone call from someone pretending to be HMRC. It’s enough to make your head spin!

And let’s not forget the scary stuff like losing your hard-earned cash or even having your identity stolen.

These aren’t just minor inconveniences. They can disrupt your life in ways you might not even realise until it’s too late. That’s why it’s more important than ever to know the warning signs and learn how to dodge these traps.

But don’t worry, while scams are getting more advanced, so are the ways to protect yourself. Let’s dive into some practical steps you can take right now to safeguard yourself and your money.

1. Be wary of unsolicited contact

Ever get one of those emails or texts out of the blue, asking you to click on a link or share some personal info? Red flag!

Scammers are pros at making their messages look legit, but there are usually a few giveaways if you know what to look for. First off, don’t panic and rush to respond. Take a deep breath and think, does this seem fishy?

Check the email address or phone number it came from. If it’s not one you recognise, or it looks slightly off (like a weird spelling or extra numbers), don’t engage. If in doubt, contact the company or person directly using a number or email you know is legit.

2. Guard your personal information like gold

Your National Insurance number, bank details, and even your date of birth are like gold to scammers.

They’ll do anything to get their hands on them, so it’s up to you to keep them safe. Never give out this information unless you’re absolutely certain who you’re dealing with.

And even then, it’s worth double-checking. If someone calls you out of the blue asking for this info, be suspicious. Hang up and call them back on a number you trust.

3. Get smart with passwords and two-factor authentication

We all know we should be using strong, unique passwords, but how many of us actually do it? It’s tempting to use the same password for everything. After all, who can remember a dozen different ones?

But this is exactly what scammers hope for. Mix it up! Use a combination of letters, numbers, and symbols, and avoid anything too obvious like your pet’s name or birthday.

And if you really want to step up your security game, turn on two-factor authentication wherever you can. It’s an extra step, but it’s worth it. Think of it like locking your front door and then putting the chain on.

More from Joel Davies on Mouthy Money

4. Stay updated on the latest scams

Scammers are always coming up with new tricks, so staying informed is key. Make it a habit to check out the latest scam warnings from trusted sources such as Citizens Advice or Action Fraud.

They regularly update their websites with the newest scams and advice on how to avoid them.

It might feel like a hassle but taking a few minutes to read up on the latest threats can save you a lot of stress and money down the line.

5. Speak up: report suspicious activity

If you think you’ve come across a scam, don’t keep it to yourself, report it! Action Fraud is the UK’s national reporting centre for fraud and cybercrime, and they’re the ones who can help stop scammers in their tracks.

Reporting a scam not only helps you but also protects others from falling victim to the same trick.

Plus, it gives the authorities the information they need to crack down on these criminals.

So readers remember, it’s not just about protecting your money. It’s about securing your future. Every step you take to safeguard against scams is a step towards a safer, more secure world for everyone.

And here’s the best part: the more we talk about these issues, the more we learn and grow as a community. With each conversation, each reported scam, and each small act of caution, we’re collectively building a stronger defence against these threats.

It might feel like an uphill battle at times, but rest assured, every little bit helps. Together, we can create a safer digital world where scammers have nowhere to hide.

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Moving can be an expensive business.

With the average cost of a home removal service for a three-bedroom house in the UK around £1,300, is it possible to make savings? 

Having moved home myself and helped my daughters do the same in recent years, I discovered some tips to save money on your home removal. I will share the best of them here.

1# Get plenty of quotes and check for discounts

As with everything, it pays to get a few quotes for home removal services. There are several comparison sites these days that make this process easier.

Be sure to ask if they offer any discounts, such as for blue light workers, and make sure the quotes include VAT.

If you are moving from a small property and don’t have masses of stuff, a man with a van service is likely to be considerably cheaper.

2# Hire a van and move yourself

We saved a ton of money during our recent house move by hiring a van and asking family to help. However, here is a disclaimer: this was very hard work!

If you have a few fit and able folks around to help and don’t have much to move, a DIY home move will be a great money-saver.

However, if you have a lot of heavy furniture or are relocating some distance it is probably better to enlist the services of professionals with a truck.

3# Move during the week

The most popular days to move are Fridays and Saturdays and, as a result, it can be cheaper to choose a weekday if possible. This is the same whether you are using a removal firm or hiring a van to drive yourself.

4# Source used packaging materials

You can purchase boxes and packaging materials from your removal company or on-line, but if you start early it is usually easy enough to pick them up for free.

I found a lot of medium-sized boxes by walking around my neighbourhood on recycling day. Freegle, Freecycle and Facebook are also good places to request large packing boxes, or you could try supermarkets and electrical retailers. 

5# DIY disassembling

Save money on your home removal by packing and disassembling furniture yourself. Removal companies will charge to take your beds apart, for example. Be sure to put nuts and bolts in a clearly labelled plastic bag so you don’t lose them. I usually tape bits and bobs securely to the piece of furniture they belong to.

6# Have a clear-out before you move

If you rarely use an item, it makes no sense to pay someone to move it! A home move is the perfect opportunity to have a good declutter. You could even make money to put towards your move by selling some of it online or at a boot sale.

7# Empty your freezer

Don’t leave emptying and defrosting your freezer until the last minute. Make sure you use everything up so that you don’t waste any food. 

Have a cool bag handy to keep any items from your fridge fresh until you get up and running in your new place, too.

8# Have a deep clean

If you rent the property you are leaving, make sure you get your deposit back with a thorough deep clean, preferably once it is empty of furniture. In addition, make sure any small repairs are done in advance of your move.

9# Buy secondhand

If you are going to a bigger property and need more furniture, check Freegle and Freecycle, charity shops and selling sites for bargains. You will pay a fraction of the price you would new.

It might be best to do this after you move so you don’t need a bigger van. If you purchase large items in advance, be sure to let your removal company know, as it may affect the price you are charged.

There are so many costs involved in moving, it makes sense to save money on your home removal where you can. Getting organised well in advance, finding the best price on your van or removal company and finding free packing materials can all help ease some of the financial stress.

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If you’ve tried all the mainstream tips, consider these unusual ways to save money instead.

Seasoned money savers will already know that you need to shop with a list, turn the thermostat down and wear layers in winter. But what else can you do to save some pennies?

Here I will explore some unusual ways to save money.

1# Get a student to cut your hair

Colleges and salons often need models for their junior stylists to practice on. You will be charged a fraction of the usual price or even get your hair cut for free.

2# Use cash envelopes

Cash is harder to part with than digital money. Try the cash envelope method of budgeting. Withdraw just the cash you want to spend on groceries, fuel, fares, going out, etc and hide your debit card away. Once the cash has gone, it’s time to stop spending!

3# Take a day a month to batch cook

Batch cooking saves time and money, particularly if you often get takeout food when you are tired or short of time. Plus you save money by buying larger packs of things like mince, cheese, etc. 

Set aside a day a month and do a huge quantity of whatever you enjoy eating regularly, then freeze into individual or family-size portions. Good options for batch cooking are bolognese or chilli sauce, shepherd’s pie, casseroles and soups.

4# House swap

Save money on holiday accommodation by house-swapping. You could start with friends and family, or join a home-swapping agency. One of the advantages is that many exchanges are happy to look after cats and other creatures as part of the deal.

5# Rent a driveway to save on parking

If you have to pay to park whilst you work, renting someone’s driveway can be a cheaper option. You could approach householders directly if you notice their driveway is often empty, or use an agency such as YourParkingSpace.

6# Plant some fruit trees

If you have the space, plant some fruit trees to save money on fruit for years to come. They require a little watering to get them going but, after that, they are quite low maintenance.

7# Wash your clothes less

Consider whether your clothing needs laundering after just a few hours of wear. Washing damages fabrics and causes them to fade over time, so they will last longer from being washed less. In addition, you will save money on water and energy.

8# Use the library audiobook service

If you currently pay for an audiobook subscription, did you know most libraries offer a similar service for free? All you need is a library card and an app. Many libraries use Borrowbox, for example.

9# Rent your kids’ toys

Check to see if you have a toy library in your area. You can borrow a range of toys, large and small, usually for the cost of a membership fee. Ask your local council or toddler group or do an internet search to locate your nearest one.

More from Shoestring Jane on Mouthy Money

10# Use up old paint

Who hasn’t got a shed full of old DIY supplies? To stop paint drying up and going to waste, find ways to put it to good use. Ideally, use it to brighten up a room. If you don’t have enough for a whole room, you could do one feature wall. 

Use spare paint to upcycle garden furniture or decorate the inside of a shed, or decant it into small containers for children’s craft projects.

11# Take a pantry challenge

Eat from your pantry for a week, planning your meals around what you already have. Yes, including the jar of fancy chutney you got in a Christmas hamper three years ago… 

Research recipes on the internet and use stuff up!

12# Cut your own and your family’s hair

YouTube will show you how to do anything yourself, including cutting your hair. Long, layered hair appears to be the easiest to do. This tutorial shows you how. 

13# Always buy generic

One of the easiest ways to save money when shopping is to go for generic brands. Be it toothpaste, paracetamol, baked beans, pasta or bread, generic labels are significantly cheaper.

14# Learn to fix things

Learn to do simple repairs yourself. Again, YouTube is a goldmine of useful advice. From fixing a broken tile, to repairing a garden chair, to patching a hole in your rug, you can find people who can show you how.

15# Start a pot-luck tradition

Pot-luck suppers are an American tradition that is becoming more popular here. They offer a great way to socialise on a budget.

The idea is that you get together with friends and each brings a dish to share.  Alternatively, you can be a bit less pot-luck and arrange for one person to bring a starter, one a main course, one the sides and another a dessert.

16# Learn some beauty treatments

If you usually go to a beauty salon, learning to carry out some of your treatments yourself can save you a packet. Waxing, brow and lash tints, lash extensions, manicures and pedicures are all relatively easy to learn. You could even do your own gel nails if you invest in an LEP lamp.

17# How much do you have to work to pay for something?

Before you make a purchase, work out how many hours you will need to work to pay for it. This can change your mindset completely. When you consider that you would have to work four hours to pay for an expensive pair of boots, for example, it might make you reconsider buying them!

18# Delete apps that encourage impulse spending

If you find yourself casually browsing your Temu, Amazon or Vinted apps and making purchases for items you don’t need, consider deleting the apps. You can reinstall them when you want to make a planned purchase. 

19# Give up smoking 

There are many health benefits to quitting smoking, but the high cost of this particular habit shouldn’t be underestimated. 

The NHS has a Quit Smoking app, which can be very helpful as it shows you how much you are saving each day. This illustration is a real one from a friend, 14 months after she quit. She set up a standing order each month, so what she previously spent on cigarettes now goes straight into her bank account!

20# Don’t idle

Turn off your car engine at traffic lights and in queues to save on fuel and reduce your carbon emissions.

I hope these slightly off-the-wall ways to save money give you a little fresh inspiration. What are your unusual way to save money?

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