As energy prices continue to rise, many of us are exploring ways to cut costs while staying comfortable. 

One increasingly popular solution is the smart thermostat. But what exactly is a smart thermostat and can it really save you money? In this article I’ll try to answer these questions and discuss my own experiences with one.

What is a smart thermostat?

A smart thermostat is an internet-connected device that allows you to control your home’s heating (and sometimes cooling) remotely via a smartphone app, tablet or computer. 

They may use advanced technology such as machine learning, motion sensors and geolocation to optimize your heating schedule, based on your habits and preferences.

Unlike traditional thermostats, which require manual adjustment or rely on fixed schedules, smart thermostats can automatically learn your routines and adjust your heating to ensure comfort and energy efficiency.

Smart thermostats work with most boilers – including gas, heating oil and electric boilers – but not all. As long as your system can be controlled by a standard thermostat or programmer, however, you should be fine.

Benefits of a smart thermostat

Energy savings – Smart thermostats can significantly reduce energy wastage by heating your home only when needed. For example, they can lower the temperature when you’re out and preheat the house before you return. 

Remote control – Forgot to turn off the heating before leaving the house? No problem. With a smart thermostat, you can adjust settings from anywhere using your smartphone.

Insights and reports – Most smart thermostats provide detailed energy usage reports, helping you understand your consumption patterns and identify opportunities to save money.

Smart integrations – Most models integrate with voice assistants like Amazon Alexa, Google Assistant, or Apple HomeKit, allowing for hands-free adjustments.

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Top smart thermostat brands

Here are the three most popular smart thermostat brands available in the UK, along with their pros and cons.

1. Nest Thermostat (Google)

Pros

• sleek design and intuitive interface
• learns your habits and automatically creates a heating schedule
• works seamlessly with Google Home and integrates with other smart devices
• energy-saving features like ‘Eco Mode’ when you’re away

Cons

• higher up-front cost compared to some competitors
• limited compatibility with certain heating systems

2. Hive Active Heating (British Gas)

Pros

• easy to use and install
• works with a wide range of heating systems
• excellent app interface with multiple scheduling options
• offers add-ons like smart radiator valves and light bulbs for a complete smart home experience

Cons

• lacks advanced learning features compared to Nest
• some additional features require a monthly subscription

3. Tado Smart Thermostat

Pros

• strong focus on energy efficiency with geofencing and open-window detection
• offers granular control with smart radiator valves
• provides detailed energy-saving reports
• compatible with almost all UK heating systems

Cons

• subscription required for premium features like geofencing
• simpler design might not appeal to those looking for a high-tech aesthetic

My experience

I got a Hive smart thermostat for my gas central heating in October 2024. I chose this based on the advice of my regular heating engineer, Dave. He has a Hive himself and recommended it for its simplicity and ease of operation. 

I paid Dave to supply and fit the device, for which he charged around £300. If you’re a keen DIY’er it’s perfectly possible to install a smart thermostat yourself, maybe with the aid of an online guide and/or YouTube video. Personally I was happy to leave the manual parts of the job to Dave, though I assisted with the electronic and online aspects.

With a Hive (and I assume other smart thermostats) you basically get three components. There is a hub you have to connect to your router using a cable; the thermostat itself, which I have on the wall of my living room (though you can detach it and move it from room to room if you like); and the main control unit, which is where my old controller used to be in the kitchen. You’ll also want to download the relevant app, so you can control the heating using your phone.

Set up was pretty straightforward. The only delay was when connecting the app. For some reason this took a few tries (Dave told me this was common in his experience), but we got there eventually.

I set up a weekly schedule for my heating and hot water, and after that basically let the thermostat do its thing. I’ve found the insights page on the app really helpful for seeing temperature changes in the house throughout the day and when the heating has cut in and out. This works far more efficiently than my old manual thermostat ever did, and is undoubtedly saving me money by only heating the house to the temperature I require. 

One small issue I experienced was that initially I kept getting a message on the app that the internet connection was weak. After a bit of research I discovered this was being caused by the fact I’d left the Hive hub too close to my router. Once I moved it a couple of feet to the window sill, the problem vanished and never returned.

Hints and tips for making the most of your smart thermostat

Here are some tips on maximizing the energy-saving potential of your smart thermostat.

1. Let it learn your routine

If your smart thermostat has a learning feature (like the Nest), give it a week or two to adapt to your schedule. Avoid making constant manual adjustments, as this can interfere with its ability to learn.

2. Use geofencing features

Many smart thermostats, such as Tado, use geofencing to adjust the heating when no-one is home. Ensure this feature is activated and that your phone’s location services are enabled for the app.

3. Set realistic temperatures

Aim for a comfortable yet energy-efficient temperature, typically around 18-21°C. Lower the temperature slightly at night or when you’re away to save more.

4. Take advantage of zones

If your system supports zoning (e.g. Hive with smart radiator valves), heat only the rooms you use regularly. For instance, keep bedrooms cooler during the day and focus heat in living areas.

5. Schedule around your lifestyle

Use scheduling tools to preheat your home only when necessary. For example, program the heating to turn on 30 minutes before you wake up or arrive home.

6. Use insights to adjust habits

Review the energy usage reports provided by your thermostat’s app to identify patterns of wastage. Adjust your settings accordingly to reduce unnecessary heating.

7. Integrate with smart home devices

Pair your thermostat with voice assistants like Alexa or Google Assistant for convenient control. You can also integrate it with other smart home devices, such as lights or sensors, for automated routines.

8. Utilise holiday modes

Going away? Use the vacation or holiday mode to keep your home at a low but frost-protecting temperature while minimizing energy use.

9. Check compatibility with your boiler

Ensure your boiler and heating system are compatible with your chosen thermostat. This will avoid efficiency issues and ensure full functionality. Personally I have a traditional heating system with a separate hot water tank, but others will have a more modern combi boiler. It’s essential to purchase the right smart thermostat for your system (Hive have two different versions for traditional and combi systems, for example).

10. Stay updated

Keep your thermostat’s firmware up to date. Manufacturers often release updates to improve efficiency, fix bugs or add new features.

Bonus tip: combine with other energy-saving measures

Combine your smart thermostat with energy-efficient practices, such as proper insulation, draught-proofing and using energy-saving curtains, for even greater savings. 

In addition, try turning down your thermostat by one degree. According to the Energy Saving Trust, this can save you up to £145 annually on your heating bills. 

Closing thoughts

So can a smart thermostat save you money? My short answer is yes – though how much will depend on your usage habits and the size of your household. 

By reducing energy wastage, offering precise temperature control, and providing actionable insights, it is estimated that a smart thermostat can lower your energy bills by 10-20% annually. This can translate to savings of £100-£200 a year.

While the initial investment for a smart thermostat may seem steep (ranging from £100 to £300, plus installation), for most people the long-term savings should outweigh this. Additionally, some energy providers offer discounts or schemes to help with purchase.

A smart thermostat isn’t just about saving money, though. It’s also about convenience, comfort and doing your bit for the environment by reducing your energy consumption. 

Whether you opt for Nest, Hive or Tado, investing in a smart thermostat should set you on the path to a more energy-efficient and comfortable home.

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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Today I’m spotlighting a lesser-known government scheme which, if you’re eligible, can give your finances a valuable boost.

The Help to Save scheme is an initiative aimed at helping people on low incomes build up their savings. Offering generous tax-free bonuses, this scheme can provide significant benefits for qualifying individuals. 

Here’s everything you need to know.

What is Help to Save?

Help to Save is a government savings scheme designed for people on Universal Credit or Working Tax Credit. 

For every £1 you save into your account, the government adds a 50p bonus,  effectively giving you a 50% return. You can save up to £50 a month, with bonuses paid out at two key points over the four-year scheme.

How do the bonuses work?

Year two bonus: After the first two years, you’ll receive a bonus worth 50% of your highest balance during that period.

Year four bonus: At the end of the four years, you’ll receive a second 50% bonus based on the difference between your highest balance in years 3-4 and years 1-2.

So if, for example, you save the maximum £50 a month for two years, you’ll have £1,200 in your account. The government will then pay you a 50% bonus of £600.

If you continue saving £50 a month for the next two years, your balance excluding bonuses will be £2,400. You will then receive another £600, bringing your total bonuses to £1,200.

Putting it another way, in four years your investment of £2,400 will have accrued £1,200 in tax-free bonuses, giving you a total savings pot of £3,600. No bank savings account will offer you a guaranteed return anywhere near that!

Key benefits of Help to Save

High returns: As mentioned above, a 50% bonus is significantly higher than any bank savings account interest rate

Flexibility: You can save as little or as much (up to £50 a month) as you like.

No risk: The scheme is government-backed, so there’s no chance of it going bust. 

Tax-free: The bonuses are tax-free, and they aren’t treated as income for benefits purposes.

Easy withdrawals: You can withdraw savings any time if you need them (though frequent withdrawals may reduce your future bonuses).

No strings: The scheme is completely free and won’t affect your credit score. In addition, once you have been accepted on Help to Save, it doesn’t matter if your circumstances change and you no longer receive a qualifying benefit.

Who is eligible?

You may qualify for Help to Save if you are receiving one of the following:

• Working Tax Credit
• Child Tax Credit and you are entitled to Working Tax Credit
• Universal Credit and you (with your partner if it’s a joint claim) had take-home pay equivalent to at least 16 hours a week at the National Living Wage (from April 2024, this is equivalent to £793.17 a month) in your previous assessment period.

You must also live in the UK (or meet specific conditions if you live abroad as a Crown servant or member of the armed forces).

Are there any age limits?

There are no specific age restrictions for opening a Help to Save account, provided you meet the eligibility criteria related to benefits and the general requirement of living in the UK. 

All the qualifying benefits do require you to be earning some work-related income, however. So if you’re retired and living entirely off your pensions and benefits, you’re unlikely to qualify. If in doubt, however, you can always apply anyway and see what response you get.

Very important deadline

The Help to Save scheme is set to close to new applicants in April 2025, meaning time is running out to take advantage of this opportunity. 

While accounts will remain open for existing users for the full four-year term, anyone hoping to benefit from this scheme now must apply before the April 2025 deadline. This will enable you to maximize your savings and earn the full bonus amount available.

How to apply

Opening a Help to Save account is straightforward. You can apply online via the official government website or using the HMRC app. 

Note that you will need a Government Gateway User ID and password. If you don’t have one of these already, you can create one during the application process. 

Closing thoughts

For those receiving eligible benefits, Help to Save offers a valuable opportunity to build a savings pot, with the added advantage of tax-free government bonuses. 

The scheme is designed to be simple and flexible, making it easy for individuals to develop a habit of saving and improve their financial security. If you qualify, it’s well worth considering as a step towards achieving a more stable financial future.

For more information and to apply, visit the government website. Don’t miss this chance to turn small, regular savings into a significant financial boost, before the scheme closes to new applicants in April 2025. 

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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Today I’m featuring a tax-saving opportunity that may potentially be of interest to many Mouthy Money readers.

The tax-free trading allowance is a benefit for UK residents looking to earn extra income from trading or side hustles without worrying about declaring that income to the taxman (initially at least). 

This allowance – sometimes referred to as the trading income allowance – provides a threshold below which individuals can earn a certain amount from trading activities without needing to report it to HMRC or pay tax on it. 

Let’s explore what the allowance is, how it works and how to maximize its benefits.

What is the tax-free trading allowance?

The tax-free trading allowance, introduced in 2017, allows individuals to earn up to £1,000 per tax year from trading activities before paying income tax on it or declaring it. 

This allowance is available to any UK resident engaged in casual trading or so-called side hustles. It can be claimed by hobbyists, self-employed individuals, and even those in formal employment.

Who can use the allowance?

The trading allowance is available to:

Self-employed traders: Those earning casual income from selling products or services. That might include small-scale eBay sellers, people running craft stalls, those hiring out power tools or other items, or anyone else offering goods and/or services for profit.

Casual workers: People who supplement their income providing services such as gardening, lawn-mowing, DIY and repairs, dog walking, babysitting, and so on.

Gig economy workers: This would include driving for ride-sharing companies and delivery services, market research, mystery shopping, and other types of gig work.

Hobby traders: People who trade primarily as a hobby (e.g. sellers of handmade crafts or collectibles) without it being their primary income source. Freelance writers and photographers who occasionally sell work would also fall into this category.

This allowance is not limited by age or employment status, so it’s open to anyone over 18 in the UK who meets the criteria.

How does the tax-free trading allowance work?

The allowance allows individuals to earn £1,000 in trading income without the need to declare it to HMRC. Here’s a quick breakdown of how it operates.

Income below £1,000: If you earn less than £1,000 from your trading activities, you don’t need to report this income to HMRC, nor do you have to pay any tax on it. For those with low-income side businesses, this is especially useful as it minimizes the burden of income tax and cuts the need for form-filling and bureaucracy.

Income above £1,000: If your trading income exceeds £1,000, you have two options:

• Deduct allowable business expenses from your trading income and pay tax (if due) on your net income.
• Use the £1,000 trading allowance as a flat deduction from your gross income and pay tax on the remainder.

It’s important to note that you cannot claim both the £1,000 allowance and business expenses. You must choose one or the other.

How to claim the tax-free trading allowance

If your total trading income is under £1,000, no action is required. You do not need to register as self-employed or complete a self-assessment tax return. If you already do this, you don’t need to record this income on the form.

However, if you earn over £1,000 and wish to claim the allowance, you will need to:

Register for self assessment: Register with HMRC as self-employed if you haven’t already. You can do this online, and it’s essential to complete this step if you’re earning above £1,000 a year from trading activities.

File your tax return: Report your income through a self-assessment tax return and select the trading allowance instead of claiming business expenses. An accountant will advise you about this if required.

Choose the better option: Decide between claiming the allowance and deducting expenses. If your expenses are relatively high, it may be more tax-efficient to deduct them from your gross income rather than the trading allowance.

Maximizing the benefits of the trading allowance

Here are some tips on how you can make the most of the tax-free trading allowance:

Test a new business idea: The allowance is ideal for experimenting with a new business idea or side gig, as it gives you a hassle-free buffer period while you test profitability. If it doesn’t work out, nobody need ever know.

Keep accurate records: Ensure you keep records of your income, even if below £1,000, to provide clarity if questioned by HMRC. Record your expenses as well, in case you end up earning more than expected and need to register as self-employed.

Deduct the allowance if beneficial: Calculate if it’s more advantageous to deduct business expenses or use the £1,000 allowance. Some people find that opting for the allowance saves them more in tax, while for others deducting expenses from their gross income works out more tax-efficient. Be aware that you cannot use the tax-free trading allowance to create a taxable loss to offset against other income sources.

What about property businesses?

If you also (or alternatively) make money from a property-related business, the good news is that alongside the tax-free trading allowance, the government also provides a separate £1,000 tax-free property allowance. 

This allowance applies specifically to people earning a small income from property-related activities. That includes such things as renting out a room, letting out your driveway or garage, or short-term letting via platforms like Airbnb.

This allowance operates similarly to the trading allowance, allowing individuals to earn up to £1,000 per year of property-related income without needing to declare it or pay tax on it. 

It’s possible for an individual to benefit from both allowances. For instance, if you earn £1,000 from a small sideline business and £1,000 renting out a spare room or parking space, you can use both allowances and keep up to £2,000 tax-free.

Common questions 

1. Can I claim the trading allowance (or property allowance) on top of my personal allowance?

Yes, the trading allowance is separate from your personal income tax allowance (for most people this is £12,570 as of the 2024/25 tax year), meaning you can still earn other types of income tax-free up to this threshold.

2. Can I claim the allowance if I’m employed full-time?

Absolutely. The trading allowance is available to everyone regardless of employment status. It’s a way to encourage side businesses and casual trading.

3. What if I have multiple income streams?

The allowance can cover different income streams, but each individual can only claim one £1,000 trading allowance and one £1,000 property allowance per year. 

So if you make £500 a year mowing lawns and £400 a year from online surveys, you can claim the total £900 tax-free under the trading allowance. But if you make over £1,000 in total that wouldn’t be the case and you would have to declare this as self-employed income.

4. What records do I need to keep?

While there are no strict rules about record-keeping, it’s important to track your earnings carefully to ensure you remain under the £1,000 threshold and accurately report any income over it. 

Even if you don’t exceed the £1,000 allowance, maintaining records of your income and business expenses is good practice and will make life much easier if your sideline business turns out to be more profitable than expected.

5. Where can I find more information?

If you’re unclear about any aspect of the tax-free trading or property allowances, the official government website should be your first port of call. If you’re still uncertain, I strongly recommend speaking to a qualified accountant. Tax can be complicated and everyone’s circumstances are different. A good accountant will be familiar with the rules and (just as important) how they are typically applied by HMRC.

Closing thoughts

The trading allowance is a flexible, tax-free cushion that can help you profit from casual trading or side gigs without added tax burdens. 

Whether you’re selling a few items online, earning from a hobby, or doing a few odd jobs for profit, it can help you keep more of what you earn and keep admin to a minimum. It can also be a great way to test out sideline money-making ideas, as regularly discussed in Mouthy Money.

By understanding how it applies to your activities, you can make the most of this valuable allowance and hopefully turn your side ventures into profitable additions to your income.

As always, if you have any comments or questions about this article, please do leave them below. But please note that I am not a qualified financial adviser and cannot answer specific queries about your personal tax circumstances.

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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Today I’m highlighting quite a traditional way of making extra money, but none the worse for that.

If you have a spare room (or rooms) in your home that you don’t mind letting out, you can generate a steady income by doing so. 

Even better, you can earn up to £7,500 a year (gross) tax-free under the government’s long-running Rent a Room Scheme. 

The Rent a Room Scheme

Anyone with space in their own home is allowed to use this scheme. You can let a single room or an entire floor.

You don’t even have to be the home-owner yourself. If you’re a tenant, you can sub-let a room, as long as your lease allows you to do this.

There are some restrictions, though. Most importantly, the accommodation must be furnished and it must be within your main residence. And you can’t claim under the scheme for self-contained flats even if they are in your own home.

• In addition, if you have a mortgage you will need permission from your mortgage provider. You should also request permission from your home insurance provider.

Money matters

If your gross rental income is under the £7,500 annual limit you don’t have to take any other action and can keep all the money tax-free. 

You don’t even have to tell the taxman unless you fill in a self-assessment form already (in that case you’ll need to enter the rental income on your return but won’t have to pay any tax on it).

One important thing to note is that the £7,500 a year tax-free allowance is for total rental income. You aren’t allowed to deduct any expenses from this, e.g. repairs or redecoration.

If you earn over £7,500 a year from renting you have two choices. One is that you can keep the first £7,500 tax tree under the Rent a Room scheme and pay tax at your highest marginal rate on the balance above this (that’s 20% for basic rate taxpayers, 40% for higher rate and 45% for additional rate – different rates apply in Scotland). This will probably be the best option for most people.

Alternatively, you can opt out of the scheme altogether. In that case you will be treated like any other small business. You will be taxed on your entire rental income, but allowed to deduct all reasonable expenses before tax is charged on what is left. This will be advantageous if you have major property-related expenses to cover. 

You can choose which option will be best for you each year, so it’s important to keep detailed financial records. More information can be found on the official government website.

Short term letting

If you don’t want a permanent – or semi-permanent – lodger, another option that has become hugely popular in recent years is short-term letting to budget travellers and people who prefer a more personal alternative to hotels.

At the forefront of this trend has been Airbnb. This site lets you offer anything from a sofa in your living room to your whole house. You can set your own rent, and decide which would-be guests you want to accept.

In most cases Airbnb charges you 3% of whatever you charge your guests (they also charge guests a service fee of around 14%). You get paid via Airbnb approximately 24 hours after your guest checks in. You can see more details about Airbnb fees and charges here.

Income from Airbnb rentals can also be claimed under the Rent a Room scheme, so long as you meet the general requirements mentioned above. This applies even if you rent out your whole house for a short period, as long as it clearly remains your main residence.

Short-term letting can obviously work well in holiday areas, but it can be done elsewhere too. For example, my sister Annie lives near Oxford and sometimes offers accommodation in her home through Airbnb to visiting academics and people coming to business meetings and conferences in the city.

There are other, similar options to Airbnb you may like to check out as well. They include Vrbo, Homestay, Booking, and more. They all operate a bit differently and offer a different range of accommodation and services (e.g. Vrbo is specifically for holiday rentals).

Closing thoughts

If your circumstances allow it, letting a room in your home can be a great way of making some extra cash. It will provide you with a regular, ongoing source of income, which could prove a lifeline in these financially challenging times. And you can choose between getting a full-time lodger or offering short-term lets. The latter is likely to entail a bit more work but may suit some people better.

As always, if you have any comments 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 by SHOP SLO® on Unsplash

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Today I’m spotlighting a piece of official data about you that might seem dry and boring, but is actually crucial to ensuring you don’t pay more tax than you need to.

Your tax code is set by HM Revenue and Customs (HMRC). It determines how much income tax is deducted from your salary, wages or pension before you receive it. 

Understanding your tax code and ensuring its accuracy can prevent you from overpaying (or underpaying) tax.

What is a tax code?

A tax code is a combination of numbers and letters that helps your employer or pension provider calculate how much tax to deduct from your income. 

For example, a common tax code for the 2024/25 tax year is 1257L. This indicates that you are entitled to a tax-free personal allowance of £12,570, with tax due on any income you receive over this. 

The letter in your tax code provides additional information about your circumstances, such as whether you have more than one source of income or are being taxed on an emergency basis.

How to find your tax code

Your tax code can be found on any of the following:

• your payslip

• your P60 or P45 (for those who have changed jobs or retired recently)

• letters or emails from HMRC

• your personal tax account on the HMRC website

Deciphering your tax code

Here’s a breakdown of what the numbers and letters mean:

Numbers: Multiply the number in your tax code by 10 to calculate your tax-free allowance. For example, 1257 means you can earn up to £12,570 a year tax-free.

Letters: These Indicate specific circumstances. 

L: standard personal allowance

M: you’ve received a marriage allowance transfer

BR: all income is taxed at the basic rate (20%)

NT: no tax is deducted from your income

S: taxpayers living in Scotland

C: taxpayers living in Wales

More from Nick Daws on Mouthy Money

Common reasons for incorrect tax codes

Your tax code might be wrong if any of the following apply:

• you’ve started a new job

• you’ve received a pay rise or bonus

• you’re receiving income from multiple sources

• you’ve claimed or stopped claiming benefits like marriage allowance

• HMRC hasn’t been updated about changes in your circumstances, such as retirement or moving abroad

What to do if your tax code is incorrect

Check your tax code: Review your payslip and/or other relevant documents to confirm your tax code.

Use the HMRC tax code calculator: This tool is available on the HMRC website. It  can help you determine if your tax code is correct, based on your circumstances. It will also reveal your annual tax-free allowance.

Contact HMRC: If you suspect an error, contact HMRC directly. You can do this by any of the following means:

• call 0300 200 3300

• use the online chat service on the HMRC website

• update your details through your personal tax account

When contacting HMRC, have the following information ready:

• National Insurance number

• details of all income sources

• recent payslips or P60s

Of course, if you have an accountant, you may prefer to ask him or her to handle this for you. Accountants are well accustomed to dealing with these matters and will normally be happy to call HMRC on your behalf.

Adjustments and refunds

Once HMRC updates your tax code, your employer or pension provider will use the new code in your next payslip. If you’ve overpaid tax, HMRC will issue a refund automatically or else adjust your tax deductions in future months.

Preventing future errors

To avoid future tax code errors:

• inform HMRC promptly about changes in your income or circumstances

• regularly check your payslip and tax code notifications

• use your personal tax account to keep track of your tax records

By staying proactive and understanding your tax code, you can ensure your finances remain in order and avoid any unpleasant surprises when it comes to your taxes.

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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Planning a European getaway this year? Along with your tickets and passport, there’s one other essential item to arrange and take with you: a Global Health Insurance Card (GHIC). 

If you’re unfamiliar with the GHIC or how it differs from the previous European Health Insurance Card (EHIC), don’t fret. This article will cover everything you need to know, from how to apply to why it’s so important for your travels.

What is a GHIC?

The GHIC card allows UK citizens to access state-provided healthcare in EU countries at a reduced cost or, in some cases, for free. It’s essentially the post-Brexit replacement for the EHIC card, which provided similar benefits. 

Like the EHIC, the GHIC is also valid in some non-EU countries, including Norway, Iceland, Liechtenstein and Switzerland. It’s also valid in Australia, and negotiations are ongoing to extend it to other countries as well.

The GHIC ensures that you’ll receive medically necessary treatment while visiting a qualifying country, allowing you to continue your trip or return home safely. This includes care for chronic or pre-existing medical conditions and routine maternity care, so long as the reason for your visit isn’t specifically to give birth.

• If you have an EHIC which is still valid you can continue using this for now, but if it has expired you will need to replace it with a GHIC.

How to apply for a GHIC

The application process for a GHIC card is simple and entirely free of charge. Beware of third-party websites that may charge unnecessary fees to process your application. Here’s how you can get your GHIC:

• Visit the official NHS website.

• Fill in the online application form. You’ll need to provide your full name, address, date of birth, and National Insurance or NHS number.

• Submit your application and wait for your card to arrive by post.

It usually takes up to 10 working days to receive your GHIC, so ensure you apply well in advance of your trip.

What are the benefits of a GHIC?

Having a GHIC can be a lifesaver if you encounter a medical emergency while abroad. The card entitles you to:

• state-provided healthcare on the same terms as residents of the country you’re visiting

• emergency care, such as treatment for injuries or sudden illnesses

• care for chronic or ongoing medical conditions that may flare up during your visit

It’s important to note, however, that the GHIC does not cover:

• private healthcare

• medical repatriation

• costs of treatment in most countries outside the EU

• non-essential procedures or treatments that can wait until you return home

Why you still need travel insurance

While the GHIC is an excellent safety net, it’s not a substitute for comprehensive travel insurance. 

A GHIC will only cover healthcare costs under the local state system, which may still involve charges depending on the country’s rules. For example, you might need to pay for hospital stays or medication upfront, even with a GHIC.

Travel insurance, on the other hand, provides broader coverage, including:

• private medical care

• medical repatriation if you need to be transported back to the UK for treatment

• non-health-related emergencies, such as lost luggage or trip cancellations

To ensure you’re fully protected, consider a travel insurance policy that complements the GHIC. Look for one that includes medical expenses and covers scenarios that the GHIC doesn’t.

Closing thoughts

Whether you’re exploring the historic streets of Rome, lounging on a Spanish beach or skiing in the Alps, having a GHIC card in your travel kit is a must. 

It’s a simple and cost-free way to ensure you’ll receive essential medical care if the unexpected happens. Just remember: it’s not a substitute for travel insurance, so don’t leave home without both.

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

The post Travelling to Europe this year? Here’s why you need a GHIC card appeared first on Mouthy Money.

Bank account switching could be a great way to make some extra cash. And we could all do with a bit more cash right now!

So today I’m featuring an easy method for generating handy lump sums by taking advantage of the incentives being offered by some UK banks.

The banks are currently battling one another for your custom. And they are offering some enticing cash bonuses (sometimes other freebies/benefits as well) to get you to sign up. 

I have seen offers of up to £250, which is certainly not to be sneezed at. What’s more, you can repeat the process multiple times, potentially making thousands of pounds.

What bank account switching involves

Making money this way simply involves switching your current bank account to a different provider that is offering an incentive for doing so. 

An example at the time of writing is First Direct, which is offering £175 in free cash (and a range of other benefits including a £250 0% overdraft).

Other banks that have offered bank account switching bonuses recently (and may still be) include TSB, HSBC, Halifax, Lloyds, Nationwide, NatWest, Santander, RBS, Co-op Bank, and Virgin Money.

You might think bank account switching is a stressful hassle. But the good news is that most switches nowadays can be managed by the Current Account Switching Service (CASS), which makes the process quick and easy. It generally takes no longer than seven days.

CASS automatically ensures all direct debits and standing orders are switched to your new account. It also ensures that any incoming payments are automatically re-routed to it.

• Though note that continuous payment authorities, sometimes used for subscriptions and loan repayments, are NOT covered by CASS. These recurring payments are set up by providing your credit/debit card details. If you have any of these you will need to switch them manually yourself.

Once your application has gone through and your new account been opened, your bank account switching bonus will be credited to it. This can take as little as 10 days, though depending on eligibility requirements (see below) it may take longer.

More from Nick Daws on Mouthy Money

Eligibility requirements

The above are the bare bones of this method, but there are also certain requirements you’ll need to meet to qualify for switching bonuses. 

Requirements vary between banks. But typically they will want you to deposit a certain amount of cash into your new account, either as a single sum or over a period such as three months. Many banks also require you to have at least two active direct debits on the account in question.

Another common requirement is that you haven’t held an account with the bank you’re switching to previously, at least within a certain period. So with First Direct (mentioned above) you can’t ever have had ANY account with them (e.g. a current account, credit card or mortgage). Also, you can’t have opened a current account with their sister bank HSBC since January 2018. 

• If for whatever reason you don’t want to change your current account, you can still benefit from this method by first setting up a ‘burner’ account with a bank that doesn’t typically offer switching bonuses. You can then use this to switch to a bonus-paying account, as long as you can meet their eligibility requirements.

Finding bank account switching offers

Bank account switching offers come and go quite frequently. The best way to keep track of them is through specialist financial websites which are regularly updated. 

I recommend this page on the popular Money Saving Expert website which lists all the best current bank switching offers. It reveals the bonuses and other freebies that are on offer and eligibility requirements, e.g. how long it must be since you last had an account with them.

Rinse and repeat!

Of course, each switch only generates one bonus. Having done it once, however, there is no reason you can’t do it again, and again…

Just be aware that applying for a new bank account will inevitably show up on your credit record and if you do it multiple times could affect your credit score.

So it may be advisable to delay if you are currently doing something that requires a good credit score, e.g. applying for a mortgage. 

In any event, it’s probably best to apply this strategy over a longer period, rather than try to cram in every offer over just a few months.

Annie’s story

My sister Annie is a serial switcher and has made hundreds of pounds from switching over the last few years. She was kind enough to send me her story (and advice), which I have reproduced (slightly edited) below…

I’ve changed bank accounts three times in the last five years, having stayed with the same bank for the previous thirty! 

Initially I was lured by the prospect of a hefty £250 to move to Virgin Money. Then I switched again to get bonuses of £150, first with Nationwide, then more recently with NatWest. 

The process is straightforward, but you have to follow the instructions to the letter. Most importantly, I found it’s nearly always the case that you can’t have been a previous customer of the bank offering the bonus, or at least not in the last five years. Secondly, you always have to use the dedicated ‘Switch’ service. And thirdly, you generally have to pay in a minimum amount each month, including a couple of direct debits. 

Like most people, I worried that all my standing orders and direct debits would get lost or messed up in the move, but the system really does operate flawlessly. It’s a very easy way to make some money! Just read the small print. Also you will probably have to download the app for your new bank in order to qualify, but I’ve found that very useful anyway. I’m currently eyeing up another move to First Direct. My only problem going forward is that I am in danger of running out of banks to switch to!

Many thanks to Annie for sharing her story.

Closing thoughts

Switching bank accounts clearly isn’t going to make anyone rich. But in these times of financial strain, the extra money from bonuses can come in very useful indeed.

And with CASS making the whole process simple and straightforward, there really is no reason you can’t make hundreds or even thousands of pounds by this method in the months and years ahead.

As always, if you have any comments 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 by Avery Evans on Unsplash

The post How to make money through bank account switching appeared first on Mouthy Money.

Today I’m turning the spotlight on a vital aspect of your financial health. Your credit score affects everything from loan approvals to mortgage rates.

It’s a measure of how reliably you handle credit and debt, and lenders use it to assess risk. 

Here’s everything you need to know to understand, check and improve your credit score.

Understanding credit scores

In the UK credit scores are managed by three main credit reference agencies (CRAs). These are Experian, Equifax and TransUnion.

Each agency uses its own scoring system, which can lead to some variation in scores. Generally, Experian scores range from 0 to 999, Equifax from 0 to 1,000, and TransUnion from 0 to 710. Higher scores are better and show lenders that you’re financially reliable, while lower scores indicate greater risk.

A ‘good’ credit score typically means:

• Experian: 721–880 is good, 881–960 is very good, and 961–999 is excellent.
• Equifax: 531–670 is good, 671–810 is very good, and 811–1,000 is excellent.
• TransUnion: 566–603 is good, 604–627 is very good, and 628–710 is excellent.

How to check your credit score

Each credit reference agency offers ways to check your score, often for free or with a free trial.

Experian: You can sign up for a free Experian account to get an overview of your score. Paid plans are also available if you want detailed reports.

Equifax: Equifax partners with ClearScore to offer free access to your score. Signing up on ClearScore provides monthly updates and access to your credit report.

TransUnion: Check your TransUnion score with Credit Karma (formerly Noddle), which provides free score updates and insights into your credit report.

Each CRA allows you to request a statutory credit report for free. This provides a snapshot of your financial history. You can request this once a year from each agency, helping you keep tabs on your credit profile and verify its accuracy.

Factors that affect your credit score

Credit scores are influenced by a range of factors, including:

Payment history – making timely payments on credit cards, loans, and other debts has a positive impact. Late or missed payments lower your score.

Credit utilization – using a high percentage of your available credit can be seen as risky. Aim to use less than 30% of your credit limit across all credit accounts.

Length of credit history – a longer credit history with consistent payments can boost your score, while short histories might lower it.

Credit mix – a good balance of credit types (credit cards, loans, mortgages) can positively influence your score, showing you’re capable of handling different types of credit.

Recent credit applications – frequent applications for new credit can indicate financial instability and lower your score. Applying for credit in moderation is wise.

Tips to improve your credit score

If you’d like to improve your credit score, here are some steps to consider:

1. Check your credit report for errors

Look over your credit reports for any inaccuracies, such as outdated addresses or accounts that aren’t yours. If you spot an error, contact the CRA to correct it.

2. Make payments on time

Paying bills promptly is one of the most effective ways to boost your score. Setting up direct debits can help ensure you never miss a payment.

3. Reduce credit utilization

Aim to use only a small percentage of your credit limit. For example, if you have a credit limit of £1,000, keeping your balance below £300 is ideal. This ratio, known as credit utilization, is a major factor in your score.

4. Build a long-term credit history

If possible, keep long-standing accounts open even if they’re not in active use. Older accounts can add stability to your credit history and increase your score.

5. Limit new credit applications

Every credit application creates a ‘hard enquiry’, which temporarily lowers your score. Only apply for new credit when necessary, and avoid multiple applications within a short period.

6. Consider a credit builder card

If you have a low or limited credit history, a credit builder card can help. These cards come with low limits and higher interest rates, but making timely payments on them can help build positive credit history. Just be sure to pay them off in full to avoid interest charges.

Use free credit score tools

Several services offer free tools to help you monitor and understand your credit score:

ClearScore – partners with Equifax to offer free monthly score updates, personalized credit offers, and insights into your credit report.

Credit Karma – offers access to your TransUnion report, complete with regular updates and tips for improvement.

Experian’s free service – Experian provides a basic score for free, along with options to monitor changes with their paid subscription plans.

These tools can help you understand what influences your score, track changes over time, and receive notifications for unusual activity, potentially alerting you to identity theft.

How long does it take to improve your credit score?

Building or improving a credit score is usually a gradual process. The time it takes varies depending on your starting point and the steps you take. Minor improvements, such as reducing your credit utilization or making a few timely payments, might result in noticeable changes within a few months. 

If you’re dealing with more severe issues, such as past defaults, it may take several years of good financial habits to see significant improvements.

Key takeaways

Check your credit score regularly – this helps you stay informed and spot errors that could be holding you back.

Pay on time – consistent, on-time payments are crucial.

Limit credit use – using a low percentage of available credit can boost your score.

Build a history – maintaining accounts over the long term adds stability to your profile.

By actively monitoring and managing your credit score, you can ensure you’re in the best position when it comes to applying for credit, securing a mortgage or negotiating loan rates. Taking steps now can lead to a stronger financial future for you and your loved ones.

As always, if you have any comments 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

The post How to check and improve your credit score appeared first on Mouthy Money.

Rail travel is generally a comfortable, environmentally-friendly way of getting from A to B in Britain. But it can also be expensive, especially for longer journeys. 

However, there’s a money-saving hack called ‘split ticketing’ that savvy travellers can use to reduce their fare costs – often by a substantial amount. 

What is split ticketing?

Split ticketing involves breaking a journey into two or more smaller segments, purchasing separate tickets for each segment rather than one through-ticket. With the help of apps like Trainsplit, this process becomes simple and automated.

With split ticketing you still travel on the same train and follow your intended route. But instead of buying a single ticket from your starting point to your destination, you buy multiple tickets to and from stops along the route. This can result in significant savings without any need to change trains.

For example, say you’re travelling from London to Edinburgh. Instead of buying a direct ticket, you could split the journey into sections like London to York and York to Edinburgh. The train stops at York anyway, so you’re not inconvenienced, but the price could work out considerably cheaper.

• Note that split ticketing only works if the train you’re on stops at the intermediate destination/s on your tickets. If it merely goes through them without stopping, this won’t be allowed.

Why does split ticketing work?

The UK rail fares system is complicated and confusing, with different pricing structures and promotional fares on offer for different parts of the same journey. 

These pricing inconsistencies mean that splitting a trip into smaller segments can bypass some of the more expensive through-ticket fares.

It’s a loophole in the system, but one that is perfectly legal. I have even had ticket inspectors comment approvingly when they see I am doing this!

How do apps like Trainsplit help?

Apps like Trainsplit do all the hard work for you. They automatically search for the best combination of tickets to get you to your destination at the lowest price. 

You enter your starting point, destination and travel time, and the app generates options showing where you can split the journey and how much you will save. 

If you have a Railcard that offers a discount (see below) this can be incorporated by the app as well. Just ensure you have the Railcard with you when you travel.

Example savings

Let’s take a few real-world examples to illustrate just how much you can save with split ticketing:

London to Manchester

Standard fare: £90 (for a direct ticket)

Split ticketed fare: £65 (splitting at Milton Keynes and Stoke-on-Trent)

Savings: £25 (about 28%)

Edinburgh to Birmingham

Standard fare: £80

Split ticketed fare: £55 (splitting at Newcastle and York)

Savings: £25 (around 31%)

Bristol to Leeds

Standard fare: £85

Split ticketed fare: £58 (splitting at Birmingham New Street)

Savings: £27 (about 32%)

In each case, the split-ticketing options allow you to stay on the same train, without changing platforms or worrying about missed connections, while saving a significant percentage on your fare.

How to use Trainsplit and similar apps

Using Trainsplit is straightforward:

• Download the app or visit the website.
• Enter your starting point and destination.
• Select your travel dates and times.
• Tick the box for any railcard you may have.
• The app will show you the best split-ticket options, along with the potential savings.
• Purchase the split tickets directly through the app.

The app even takes care of booking all the individual tickets at once, so you don’t have to make multiple transactions. 

Other similar apps, like Trainline and RailEurope, also offer split ticketing features, though Trainsplit is especially focused on maximizing savings. In my experience it typically offers the best savings, though you can of course try other apps as well to see if you can find a cheaper option.

More tips for saving money on rail fares

While split ticketing can make a significant difference, there are other ways as well to reduce the cost of rail travel:

Book in advance: Advance tickets are usually released 12 weeks before travel and are often much cheaper than buying on the day.

Travel at off-peak times: Fares are usually lower during off-peak hours (generally outside morning and evening rush hours).

Use a Railcard: If you’re eligible, a Railcard (such as the 16-25 Railcard, Two Together Railcard, or Senior Railcard) can save you up to a third on fares.

Check GroupSave offers: Some routes offer GroupSave discounts for groups of three or more travelling together.

Save on days out: Certain tourist attractions offer reduced-price admission (or two-for-one) if you go by train. For example, the London Dungeon offers a third off if you do this. Check out the National Rail website for this and other offers.

Closing thoughts

Travelling by train doesn’t need to break the bank, especially when using smart strategies like split ticketing. 

With apps like Trainsplit, the process of finding the best deals is automated, making it easier than ever to save. By investing a few minutes in checking split-ticket options, you could potentially save a significant amount on your next journey, leaving more money in your pocket to spend at your destination!

As ever, if you have any comments about this article, please do share 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

The post How to save money on rail fares with split ticketing appeared first on Mouthy Money.

In today’s busy world, finding time to stay fit can feel like a challenge. But what if working out could help your wallet as well? 

Thanks to a range of fitness apps available on your phone, staying active can do more than just improve your health – it can also help you make or save money. 

From cashback on fitness purchases to rewards for hitting step goals, technology is making it easier than ever to turn your workouts into financial gains. 

Here’s how you can get fit and boost your bank balance into the bargain.

1. Get paid to walk with apps such as Sweatcoin

Walking is one of the easiest and most accessible forms of exercise. With Sweatcoin, you can get paid simply for walking. 

The app tracks your steps and converts them into ‘sweatcoins’, a form of digital currency. These can be redeemed for goods and services, including fitness gear, tech gadgets and even gift cards. You can also save up your sweatcoins to donate to charitable causes.

How it works:

• Download the Sweatcoin app (available for iOS and Android).
• Let the app track your steps in the background.
• Earn sweatcoins for every step you take.
• Redeem sweatcoins for a variety of products or donate to charity.

Potential savings: While you won’t make a fortune, Sweatcoin rewards can help you offset costs on everyday purchases, contributing to long-term savings.

• Other apps like Sweatcoin that offer the chance to save or make money by keeping fit include BetterPoints, Winwalk and Evidation.

2. Get cashback for staying active

Some fitness apps and services now offer rewards for maintaining an active lifestyle.

For example, Vitality, a UK health insurance provider, encourages you to stay active by offering cashback and rewards like discounts on gym memberships and sports gear.

By linking your fitness tracker or app to their system, you can collect points for every run, walk, cycle or workout, which you can then redeem for rewards.

How it works:

• Sign up for a Vitality health insurance plan.
• Track your fitness activity with your app or wearable device.
• Accumulate points for activities such as walking, cycling or going to the gym.
• Redeem points for rewards like gift cards, Apple Watches or cashback on your premiums.

Potential savings: Depending on how active you are, you can save hundreds of pounds a year on insurance premiums and lifestyle products.

3. Earn cashback on healthy purchases

Several UK-based banking apps, such as Monzo and Curve, offer cashback or discounts for spending on fitness-related purchases, such as gym memberships, sports equipment and healthy food.

They often partner with wellness brands, offering users cashback when they make qualifying purchases.

How it works:

• Sign up for a Monzo or Curve account (or link your existing account to an app that offers cashback).
• Use your card to make fitness-related purchases, such as gym memberships, sports gear or nutrition supplements.
• Earn a percentage of your purchase back in cashback, which is credited directly to your account.

Potential savings: Cashback offers can range from 1% to 10% depending on the brand, potentially saving you hundreds of pounds annually.

4. Offer online fitness coaching

If you’re already passionate about fitness, why not turn your hobby into a source of income?

Apps like Fiverr and Upwork allow you to offer personal training, fitness coaching or wellness advice to clients around the world. 

Whether you’re a certified personal trainer, a yoga instructor or a fitness enthusiast with a wealth of knowledge, there are people willing to pay for your expertise.

How it works:

• Create a profile on a freelancing platform (e.g. Fiverr, Upwork).
• Offer fitness-related services, such as personalised workout plans, online coaching sessions or nutritional guidance.
• Set your rates and start taking on clients.

Potential earnings: Depending on your skills and experience, freelance fitness coaches can charge anywhere from £20 to £100 per hour, making it a lucrative side hustle.

5. Sell fitness plans and content

Another potentially profitable option if you’re a fitness fan is creating and selling digital products such as workout plans, ebooks or exercise videos. 

Platforms like Etsy and Gumroad allow you to create and sell fitness-related digital content. Whether it’s a beginner’s guide to weightlifting or a 30-day home workout plan, there’s a growing market for well-structured fitness programmes. 

Another option would be to set up a health and fitness channel on YouTube and profit from a share in the advertising revenue. It worked for Joe Wicks!

How it works:

• Create a digital product, such as a workout plan, healthy recipe guide or training video.
• List your product on a digital marketplace like Etsy or Gumroad.
• Promote your product through social media or fitness-related communities.

Potential earnings: While the income may start off small, digital products have the potential to generate growing amounts as word spreads, meaning you earn money without much ongoing effort.

6. Save on gym memberships

With the rise of high-quality fitness apps like Nike Training Club and FitOn, you no longer need an expensive gym membership to stay fit. 

Many of these apps offer free or low-cost workouts that you can do from home, saving you money on gym fees, travel and equipment.

How it works:

• Download a free fitness app (e.g., Nike Training Club, FitOn, or Freeletics).
• Choose from a variety of workouts, from yoga to high-intensity interval training (HIIT).
• Follow guided workouts from your phone, often with no equipment needed.

Potential savings: Typical gym membership in the UK costs around £40 a month. By using a free or low-cost fitness app, you can potentially save £480 a year or more.

7. Get discounts on fitness tech

Several apps and fitness services offer discounts on wearables like Fitbits and Apple Watches if you commit to using their platforms. 

For example, with health insurer Vitality (mentioned earlier), you can get an Apple Watch for as little as £37 if you hit your activity targets each month.

How it works:

• Sign up for a fitness or health platform that offers wearable discounts.
• Purchase a discounted fitness tracker or smartwatch.
• Keep up with your activity goals to avoid paying full price.

Potential savings: A premium smartwatch like an Apple Watch can cost over £400, so taking advantage of fitness-related discounts can save you hundreds of pounds.

Closing thoughts

Staying active doesn’t have to be expensive. With the right fitness apps (and a bit of physical effort) you can improve your health while saving or even making money.

Whether you’re earning cashback for your daily steps or saving on costly gym memberships, there are lots of ways to maximise both your fitness and your finances. 

So lace up your trainers, download a fitness app, and start boosting both your body and your bank balance!

Nick Daws writes for Pounds and Sense, a UK personal finance blog aimed especially (though not exclusively) at over-fifties.

Photo credits: Pexels

The post Get fit, make money – how to profit from fitness apps appeared first on Mouthy Money.