Saving Money

Posts about saving money from a 60-plus perspective, including cashback schemes, deals sites, discount offers, and so on.

Could a Smart Thermostat Save You Money?

Could a Smart Thermostat Save You Money?

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As I write this, the UK is enjoying a period of fine summer weather; but of course autumn and winter will be along soon enough. 

With energy prices continuing to rise, it’s more important than ever to explore ways to cut your home heating costs while staying comfortable. 

An increasingly popular solution is a smart thermostat. But what exactly are these devices and can they really save you money? In this post 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 will work with most (but not all) boilers, including gas, heating oil and electric boilers. It is also possible to use them with heat pumps, but you will need a special type of smart thermostat that works a bit differently. In this post I will concentrate on smart thermostats for ‘traditional’ heating systems. This article has some useful information about smart thermostats for heat pumps.

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.

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, 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. Utilize 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 post, please do leave them below. 



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Amazon Prime Day is Almost Here

Amazon Prime Day is Almost Here!

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A quickie today to let you know that the annual Amazon Prime Day is almost with us. This year it extends over four days, Tuesday 8th to Friday 11th July 2025.

Prime Day is a special event for Amazon Prime members only. During it Amazon offers Prime members extra savings and special offers across a wide range of TVs, smart home products, kitchen equipment, grocery, toys, fashion, furniture, everyday essentials, and more.

Some of the best deals are typically reserved for Amazon’s own products, such as their Kindle e-book readers, Amazon Echo smart speakers and Ring video doorbells and security cameras. Discounts are often in the region of 40-50 percent for these products. If you’re thinking of buying any of them, Prime Day is definitely the day – or four days! – to do it.

I have been a member of Amazon Prime for over ten years now. As a regular Amazon shopper, I find it well worth while for the free one-day delivery on millions of items alone. But as a Prime member you get access to a lot of other benefits and services as well, including Amazon Prime Music and Amazon Prime Video.

If you’re thinking of joining Amazon Prime, therefore, I highly recommend doing it in the next day or two, so you can benefit from the Prime Day offers. Personally I think it’s worth it for the free delivery alone, let alone everything else that’s on offer. But if you wish, you can get a 30-day free trial now, take advantage of the Prime Day offers, and then cancel without owing any money. It’s your choice!

  • You can also see all the latest Prime Day deals by clicking here. This page also lists early deals before Prime Day itself.

As always, if you have any comments or questions about Amazon Prime or Prime Day, please do post them below.

Disclosure: This post includes affiliate links. If you click through and make a purchase, I may receive a commission for introducing you. This will not affect the price you pay or the products or services you receive.




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Social tariffs

How Social Tariffs Can Help You Save on Household Bills

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With the cost of living continuing to put pressure on household finances, many people in the UK are unaware they could be paying less for essential services like broadband, water and energy. If you’re on a low income or receiving certain benefits, you may be eligible for social tariffs – discounted rates offered by providers to help those most in need. Here’s what you need to know.

What Are Social Tariffs?

Social tariffs are specially discounted rates offered to people on low incomes and/or receiving certain means-tested benefits. These tariffs are often significantly cheaper than standard ones and aim to ensure everyone can afford access to essential utilities and services.

Unlike short-term promotions, social tariffs are designed to offer long-term affordability and typically come with flexible terms, e.g. no exit fees and the ability to switch back to regular plans when your circumstances change.

Social Tariffs for Broadband

Broadband internet is essential for accessing services, finding work, staying in touch, and more. Yet many people are paying standard prices when they could be saving money each month.

 

Who Offers Social Broadband Tariffs?

Most major UK broadband providers offer social tariffs. Some examples are shown in the table below.

Provider Plan Name Monthly Cost Speed Eligibility
BT Home Essentials £15 36 Mbps Universal Credit, Pension Credit, ESA, JSA, Income Support
Virgin Media Essential Broadband £12.50 15 Mbps Universal Credit
Sky Broadband Basics £20 36 Mbps Universal Credit, Pension Credit
NOW Broadband Basics £20 36 Mbps Universal Credit, Pension Credit
Hyperoptic Fair Fibre Plan £15 50 Mbps Several means-tested benefits

 

Check each provider’s website for full details and availability in your area.

How to Apply

You’ll usually need to:

  • Be receiving a qualifying benefit (e.g. Universal Credit, Pension Credit, ESA, JSA)

  • Apply directly with the provider, often via a dedicated web page

  • Provide proof of eligibility (some providers check automatically)

Most social broadband tariffs have no setup fees, no mid-contract price rises, and shorter contract terms – typically 12 months or rolling monthly

Social Tariffs for Water Bills

As discussed in this recent blog post, water companies in England and Wales also offer discounted tariffs for customers who are struggling to afford their bills. These social water tariffs are designed to reduce charges for households on low incomes or receiving certain benefits.

What Support Is Available?

Each water company sets its own scheme, but most offer:

  • Reduced bills based on income and household circumstances

  • Debt support and payment plans

  • Water meters to help control usage

For example:

Water Company Scheme Name Support Offered
Thames Water WaterHelp Up to 50% off bills for low-income households
Severn Trent Big Difference Scheme Bills reduced by up to 90% depending on income
United Utilities Help to Pay Lower bills for those on Pension Credit
Yorkshire Water WaterSupport Tiered discount based on income and household size

 

Who Is Eligible?

Eligibility varies slightly by region, but in general you may qualify if:

  • Your household income is below a certain threshold (e.g. £21,000 per year)

  • You receive means-tested benefits

  • You have high water usage due to medical needs or a large family

How to Apply

Visit your water company’s website or contact them directly. You’ll likely need:

  • Proof of income or benefits

  • Recent water bills or meter readings

  • Details about your household size and needs

You can also get help from Citizens Advice or StepChange, who can assist with applications and managing arrears.

Social Tariffs for Energy

Energy prices remain high, and although the Energy Price Guarantee and price cap offer some protection, many households are still struggling.

While there is currently no mandatory social tariff for energy in the UK, some suppliers do offer extra support, and the government has been consulting on introducing a formal scheme.

Help Currently Available

  • Warm Home Discount: Offers £150 off your electricity bill automatically if you’re eligible. It’s not a social tariff, but it helps reduce costs.

  • Priority Services Register: Offers free support services (e.g. advance notice of outages, help reading meters) for vulnerable customers.

  • Energy Support Funds: Some suppliers (e.g. British Gas, EDF, E.ON Next, Octopus) offer hardship funds or discretionary credit for customers in financial difficulty.

  • Government Consultation: A formal energy social tariff could be introduced in the future, aiming to replace stop-gap measures like the Warm Home Discount.

Who Is Eligible?

Eligibility criteria vary by provider, but typically you must be receiving at least one of the following:

  • Universal Credit

  • Pension Credit (Guarantee Credit)

  • Income Support

  • Employment and Support Allowance (ESA)

  • Jobseeker’s Allowance (JSA)

  • Personal Independence Payment (PIP)

  • Attendance Allowance

  • Disability Living Allowance (DLA)

  • Carer’s Allowance

Even if you’re not sure, it’s worth checking — some providers may consider broader circumstances.

Tips to Save Even More

  • Use a benefits calculator (e.g. Turn2us or Entitledto) to check what you’re entitled to.

  • Switch providers: Even without a social tariff, switching could save you money.

  • Check for grants or local schemes via your council or Citizens Advice.

Final Thoughts

If you’re struggling with your broadband or energy bills, don’t suffer in silence. Social tariffs can offer substantial monthly savings and provide peace of mind during difficult times. They’re designed to be easy to apply for and are often available even if you’re already a customer.

Check with your provider or visit Ofcom’s website to find out more – and make sure you’re not paying more than you need to.

Have you benefited from a social tariff? Share your experience in the comments to help others who might be eligible too.




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How to reduce your water bills

How to Reduce Your Water Bills

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In Britain we’re lucky to have high-quality running water on tap whenever we need it. LIke everything else in life it costs money, however. And in these times of rising prices and squeezed incomes, those costs can be a growing burden. So in this article I’ll be setting out some ways you may be able to reduce your water bills.

The first thing to say is that water pricing varies across the nations of the UK. In England and Wales, unless you have a water meter, the price you pay will depend on the rateable value of your home. 

In Scotland, again unless you have a meter, you will pay a standard water charge with your council tax. 

Domestic customers in Northern Ireland are fortunate in that they aren’t required to pay a water bill at all, though it is possible this may change in future.

Should You Get a Water Meter?

The average water bill for unmetered customers is currently around £470 a year.

If you’re on a low income, that can represent a significant chunk of your money. And unlike gas and electricity, you can’t just shop around for a better deal with a different supplier. You may, though, be able to make significant savings by having a water meter installed.

With a meter, you are of course charged according to how much water you use. A good rule of thumb here is that if your house has more bedrooms than occupants or the same number, it is definitely worth looking into getting a meter installed.

Of course, people vary considerably in how much water they use. So you can use  this free online calculator from the Consumer Council for Water to check whether you are likely to save money with a meter. It asks a series of questions about your home and your water usage and reveals the estimated cost you would pay if you had a meter. You can then compare this with what you are paying currently.

The good news is that in England and Wales (though not Scotland) water companies will normally install a water meter free of charge if requested. Even better, they will usually let you switch back to unmetered within 12 or even 24 months if you find you are paying more with a meter than you were before. You should check with your water company to find out their policy about this.

  • If your water company can’t fit a meter for some reason, you can ask for an ‘assessed charge bill’. This is calculated based on the size of your home and how many people live there. If it comes to more than you’re currently paying you can stick with your present billing method, so there is nothing to lose by requesting this.

Saving Money With a Water Meter

Once you have a meter installed, there are lots of ways you can reduce your water usage and save yourself money (and benefit the environment as well!). Here are just a few suggestions…

  • Only ever use the washing machine with a full load.
  • Have showers rather than baths and keep them reasonably short.
  • Do all the washing-up in one go.
  • Use a dishwasher, or at least a washing-up bowl.
  • Turn off the tap while brushing your teeth.
  • Don’t use the toilet as a waste bin for paper tissues, etc.
  • Fix dripping taps and any other leaks as soon as possible.

Finally, most water companies have a range of gadgets to help save water they will send you for free. Give them a call or check on their website to find out what’s available.

Other Ways to Cut Your Water Bills

If you are on a low income, all the water companies have schemes and discounted tariffs to help you. These vary a lot and you will need to check with your water company what they offer. 

Severn Trent, for example, has the Big Difference Scheme, which offers significant discounts (up to £390 a year) on water bills for eligible households, based on income.

My Experience

As a customer of South Staffs Water, I recently applied successfully for a discount on grounds of low household income (under £22,011) under their Assure scheme. 

Under this rather odd (in my opinion!) scheme I will be getting 60% off my bills in the first year, 40% in the second year, and 20% in the third. I have no idea if I will then be able to reapply and start the process again. Even so, it will certainly help my finances in these challenging times. Under Assure (and similar schemes) it is only your household income taken into account, not any savings or investments.

Closing Thoughts

Water bills have risen rapidly in recent years, partly due to the major investment required in Britain’s creaking water-supply and sewerage infrastructure, along with a rising population. 

From being at one time a relatively minor expense, water bills are now (if you’ll pardon the pun) a significant drain on many people’s household income. 

With other bills rising fast as well, it’s therefore vital to grasp any opportunity to keep your water costs as low as possible. 

As always, if you have any comments or questions about this post, please do leave them below.

This is a revised and fully updated version of my original post.



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How to save money on rail fares with split ticketing

How to Save Money on Rail Fares With Split Ticketing

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Rail travel is generally a comfortable, environmentally-friendly way of getting from A to B. 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 this. 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 better 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, visitors to Madame Tussauds in London can get a third off the admission price if they travel by train. 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 post, please do share them below.

This is a revised and updated version of an article first published on Mouthy Money.




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Could You Benefit From Help to Save?

Could You Benefit From Help to Save?

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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.

Help to Save 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. 

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

Year 4 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.

Who is Eligible?

Recent changes have expanded eligibility for Help to Save to include all working Universal Credit claimants who earned £1 or more in their previous assessment period. The former minimum earnings threshold of £793 per month has been removed.

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). You must also have a UK bank account.

  • The Help to Save scheme deadline has also been extended. You can now open an account until April 2027. ​

Are There Any Age Limits?

There are no specific age restrictions for opening a Help to Save account provided you meet the criteria above. Once you have qualified for the state pension, however, you will not be eligible to receive Universal Credit. That means if you’re coming up to retirement age (currently 66, gradually rising to 67 from 6 May 2026), it’s important to apply for the scheme before you reach that age.

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 eligible 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 2027. 

As always, if you have any comments or questions about this article, please do leave them below. 




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From Saving to Spending - The Retirement Mindset Shift

From Saving to Spending: The Retirement Mindset Shift

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Today I’m looking at a subject that may affect many readers of this blog who have recently (or not so recently) retired. It’s certainly a concern that I’ve faced myself (discussed later in the article).

For decades, many of us save diligently for retirement, carefully managing our finances to ensure what we hope will be a comfortable future. But once we finally reach retirement, a surprising challenge can emerge: shifting from a saving mentality to a spending one.

This transition can be difficult, even stressful, leading to problems such as excessive frugality, missed opportunities for enjoyment and unnecessary financial anxiety. Understanding why this happens – and how to navigate it – can help retirees make the most of their ‘golden years’.

Why Can it be Hard to Spend in Retirement?

For most of our working lives, we are conditioned to save for the future. The importance of building a pension pot, maximizing savings and preparing for the unexpected is constantly emphasized. Over time, this mindset becomes deeply ingrained, making it hard to reverse once retirement begins.

Here are some key reasons why many retirees struggle with spending…

Fear of Running Out of Money – With no regular salary coming in, retirees often worry that their savings won’t last. This fear can be worsened by rising living costs, potential healthcare expenses, and uncertainty about how long they will need their money to last.

A Lifetime Habit of Frugality – Many people have spent decades budgeting carefully, avoiding unnecessary expenses and prioritizing financial security. Suddenly being told it’s ‘okay’ to start spending feels unnatural, even reckless.

Uncertainty About the Future – Unlike a working salary, which can be replenished, a pension pot or savings account feels (and generally is) finite. Economic uncertainty, stock market fluctuations and potential care costs make it difficult for retirees to gauge how much they can safely spend.

The Problems of Excessive Frugality

While being cautious with money is clearly advisable, being overly frugal can unnecessarily reduce quality of life. Some retirees deny themselves experiences, comforts and even essentials because they feel they ‘shouldn’t’ spend. Here are some reasons why this can be problematic…

Missed Opportunities – Retirement is meant to be enjoyed, yet some people avoid holidays, hobbies or social outings because they fear dipping into their savings.

Health and Well-being Risks – Reluctance to spend on home improvements, heating or even nutritious food can have serious consequences for health and safety.

Unnecessary Financial Stress – Constantly worrying about money can take a toll on our mental well-being, even when there are sufficient funds available.

Regret Later in Life – Some realize too late that they were overly cautious and could have enjoyed their retirement more. By the time they feel comfortable spending, they may no longer be fit and healthy enough to do so.

How to Develop a Healthy Spending Mindset

Making the shift from saver to spender requires a conscious effort, but is possible with the right approach. Here are some suggested guidelines to embrace the opportunities presented by retirement whilst still maintaining financial security…

Create a Retirement Spending Plan
Just as saving required a strategy, so too does spending. Work out a realistic budget that includes essentials, discretionary spending and an emergency fund. This can provide reassurance that spending on enjoyment is both affordable and sustainable.

Think of Your Savings as a Paycheque
Rather than seeing savings as a lump sum to be preserved, treat it like an income stream. Regular withdrawals – whether from a pension or other savings – can make spending feel more structured and less daunting.

Prioritize Experiences
Research shows that spending money on experiences rather than possessions leads to greater happiness. Travel, hobbies and social activities can provide fulfilment while keeping finances under control.

Reframe Money as a Tool for Happiness
Rather than viewing savings as something to hoard, retirees can shift their perspective to see money as a resource for a fulfilling and comfortable life. This change in mindset can help ease spending anxieties.

Consider Gradual Adjustments
If spending feels uncomfortable, starting small can help. For example, try increasing your leisure budget gradually or treating yourself to one extra luxury per month. Over time, this can help you feel more at ease with enjoying your wealth.

Take Financial Advice
A professional financial adviser can help retirees feel confident about how much they can afford to spend while ensuring their money lasts. Regular reviews of pensions and investments can provide reassurance (see My Experience, below).

Give Yourself Permission to Enjoy the Rewards of Saving
Remember why you saved in the first place – to have security and enjoyment in later life. A balanced approach ensures financial stability while allowing for a fulfilling retirement.

My Experience

I have been officially retired for several years now. I still do a bit of freelance work (and run this blog) but my freelance income has tapered off. I am fortunate to have some savings and investments, the bulk of which I acquired through inheritances (though some from money I saved over the years).

As regular readers will know, although I’m a money blogger with a particular interest in such matters, I do have a personal financial adviser myself (I talked about this a while ago in this article). His name is Mike, and in my recent annual review he gently suggested that I could afford to withdraw a bit more from my investments. Essentially, he told me that I wasn’t getting any younger (I’m 70 this year) and there would be no benefit to dying with a lot of money left in my account. In some ways I found this advice encouraging, in others a bit depressing!

I do accept the gist of Mike’s advice, though. Even though I’m basically in good health, none of us knows what the future may hold. So I have promised Mike that I will think about what he has said and consider whether to draw more from my investments, while still leaving enough to cover my possible health and care needs in future. Of course, without a functioning crystal ball this isn’t an easy task, especially with the very high cost of care in the UK. But it’s important to take a balanced view and ensure you aren’t depriving yourself unnecessarily now whilst still retaining sufficient funds in case circumstances change in future.

Closing Thoughts

As I said at the start, the shift from saving to spending can be one of the biggest psychological adjustments in retirement.

Retirement is meant to be enjoyed, but many retirees find themselves trapped in a frugality mindset that stops them fully embracing the opportunities presented by this stage of life.

While financial prudence is important, excessive caution can lead to missed opportunities and unnecessary sacrifice. By shifting perspectives, planning carefully and embracing the idea that money is there to be used and enjoyed, retirees can – hopefully – strike a balance between financial security and enjoying their hard-earned wealth.

As ever, I’d love to hear any views (or tips) from readers about walking the tightrope between preserving your savings and making the most of life while you can.



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Beat the Postage Stamp Price Rise

Beat the Postage Stamp Price Rise!

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A quickie today to let you know that the price of stamps is rising again on Monday 7 April 2025. That will be the SIXTH rise in the price of first class stamps in just three years.

On this occasion a standard first class stamp is going up from £1.65 to £1.70, a 3% increase. The price of sending a large letter first class is going up by substantially more, from £2.60 to £3.15. That’s an increase of 55p or an inflation-busting 21%.

The price of sending a standard letter by second class post is increasing from 85p to 87p (a 2% rise), One small bit of good news is that the cost of sending a large letter second class is not rising and remains at £1.55.

Standard letters can weigh up to 100g and measure a maximum of 24cm x 16.5cm x 5mm. Large letters can measure 35.3cm x 25cm x 2.5cm but still have to weigh under 100g. If they weight over 100g, higher rates apply, and if they weigh over 750g they have to go at parcel rates.

The cost of many of Royal Mail’s ‘Signed For’, ‘Special Delivery Guaranteed’ and ‘Tracked’ services will also rise from 7 April, as will the price of sending parcels first and second class. You can see a full list of prices by clicking here (PDF).

Saving Money on Stamps

So is there anything you can do to mitigate the impact of the latest price rises?

Well, my number one recommendation is to stock up now while stamps are still at the old price. Standard and large-letter stamps don’t have values printed on them and will still be valid after the April price rise comes in. If you can afford to buy (say) 100 standard first-class stamps and 100 large letter first class stamps, that will save you an impressive £60 in total.

The best bet for buying stamps is – of course – your local post office. If you don’t have one near at hand, however, you can also buy in bulk from The Royal Mail Shop (minimum order £50 for free delivery)..

Amazon also sell postage stamps, though costs vary and when I checked some prices were significantly higher than at post offices. But they may be worth a look, especially if you are an Amazon Prime member.

Another option you could consider is the online auction site eBay. There can be good savings to be made here, but check reviews and ratings carefully and be wary of offers that are clearly too good to be true.

  • Remember, also, that older UK stamps without barcodes are no longer valid.

For more information about the price rise and all the new rates from 7 April 2025, you can access the Royal Mail April 2025 pricing guide here (PDF).

If you have any comments or questions about the above, as always, please do post them (no pun intended!) below.




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Use Your Tax-Free ISA Allowance Before It's Too Late!

Don’t Miss Out! Use Your £20,000 ISA Allowance Before It’s Too Late

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As the end of the tax year on 5 April 2025 approaches, so too does the deadline to utilize the annual tax-free Individual Savings Account (ISA) allowance.

The clock is ticking, and unless you take action in the next few weeks, this opportunity to maximize your tax-free savings for the 2024/25 financial year will be gone.

ISAs are a popular choice for savers and investors alike, offering a tax-efficient way to grow your wealth. With a diverse range of options available, from cash ISAs to stocks and shares ISAs and innovative finance ISAs, individuals have the flexibility to tailor their savings strategy to suit their financial goals and risk appetite.

The current ISA allowance stands at £20,000, providing a significant opportunity to shield your savings and investments from tax. This allowance represents a generous sum that, if left unused, cannot be carried forward to future years. In essence, any portion of the £20,000 allowance that remains untapped by the upcoming deadline will be lost, representing a missed opportunity for tax-free growth.

For those who have yet to fully utilize their annual ISA allowance, now is the time to take action. Whether you’re looking to bolster your rainy-day fund with a cash ISA, seeking to invest in the stock market through a stocks and shares ISA, or diversify your investment portfolio with an IFISA, there’s no shortage of options available.

Cash ISAs offer a secure and accessible way to save, providing a tax-free environment for your savings with the added benefit of easy access to your funds when needed. Meanwhile, stocks and shares ISAs open the door to potentially higher returns by investing in a wide range of assets such as equities, bonds and funds, albeit with a higher level of risk. And an Innovative Finance ISA, or IFISA for short, allows you to invest via P2P/crowdfunding platforms, further diversifying your portfolio (though again with a higher level of risk).

With an ISA you will never incur any liability for dividend tax, capital gains tax or income tax, even if your investments perform exceptionally well. Of course, there is no guarantee this will happen, but over a longer period stock market investments have typically outperformed cash savings, often by a substantial margin.

In recent years I have invested much of my own annual ISA allowance in a stocks and shares ISA with Nutmeg, a robo-manager platform that has produced good returns for me (almost 20% over the last year alone). You can read my in-depth review of Nutmeg here. I have also invested some money in a property IFISA from Housemartin (previously Assetz Exchange). You can see my latest post about Housemartin here. You can also check out my February 2025 Investments Update to see how my Nutmeg and Housemartin investments (and others) have been faring recently.

Finally, for shorter-term savings, I am currently using the Trading 212 Cash ISA. The interest rate paid by Trading 212 is reducing from the current 4.9% to 4.5% from the start of March, but it’s still competitive with other cash ISA providers and has fewer strings attached..

With just a few weeks left to take advantage of this valuable tax benefit, delaying now could prove costly. By acting swiftly you can ensure that your savings and investments are positioned to grow tax-free, setting yourself up for a better financial future.

  • This has become all the more important with reports (such as this one) suggesting Chancellor Rachel Reeves is considering changing the rules applying to ISAs, and in particular reducing the tax-free allowance for cash ISAs to as little as £4,000.

In summary, the £20,000 annual ISA allowance for the 2024/25 tax year presents a golden opportunity to maximize your tax-free savings and investments. Time is of the essence, though. Unless you act before the impending deadline on 5th April 2025, this valuable allowance will be lost forever. If you have the money available, therefore, seize the opportunity now to help secure your financial future.

As always, if you have any comments or questions about this article, please feel free to leave them below.

Disclaimer: I am not a qualified financial adviser and nothing in this blog post should be construed as personal financial advice. Everyone should do their own ‘due diligence’ before investing and seek professional advice if in any doubt how best to proceed. All investing carries a risk of loss.




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Plum 52-Week Saving Challenge

Take the Plum 52-Week Saving Challenge!

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I have written about Plum a few times on Pounds and Sense. Today I am spotlighting their new Plum 52-Week Saving Challenge. This is designed to help you set aside a handy lump sum of up to £1,378 in a year, while making the whole process as quick and easy as possible 🙂

Let’s start with the basics for those who may be new to Plum, though…

What is Plum?

Plum is a smart money app designed to help you automate setting money aside for any purpose – from holidays to major purchases or simply for a ‘rainy day’ fund. It uses AI to analyze your spending and then makes suggestions about saving and investing.

NOTE: Capital is at risk if you invest. The value of investments can go down as well as up.

Plum is one of a range of apps that make use of Open Banking. This allows third-party apps to access your financial information – as long as you provide the necessary authorization, of course – and perform certain transactions on your behalf (if you choose to set up a direct debit). Plum uses Open Banking to access your financial information with your authorization. Ensure you are comfortable with this before proceeding.

Plum offers three levels of account. These are the free Plum Basic and paid-for Pro and Premium. 

The Basic account is (as stated) free of charges. Fees apply for Pro and Premium accounts. Plum Pro costs £2.99 a month and Premium costs £9.99 a month. The Pro and Premium accounts offer a wider range of features and higher interest rates in interest-bearing ‘Pockets’. It’s important to note that these are not traditional savings accounts. This is further discussed on the main Plum website.

The current challenge is specifically for people who have a Pro or Premium account 

The 52-Week Saving Challenge

The Plum 52-Week Saving Challenge is designed to help you set aside up to £1.378 in one year. Here’s how it works. 

You start by setting aside  £1 in the first week. Then each week you add £1 more than the previous week. So in the second week, you set aside £2, in the third week £3, and so on.

Week 1: £1

Week 2: £2

Week 3: £3 . . .

Week 51: £51

Week 52: £52

By the end of the challenge year, you will have set aside a total of £1,378. Before you start you can check out a special calendar in the app that shows exactly how much money you’ll be setting aside each week.

How to Get Started

As mentioned above, holders of Plum Pro or Premium accounts have access to a built-in feature that makes the whole challenge as easy and painless as possible. Just follow these few simple steps below… 

  • Open the Plum app and find the Brain.
  • Tap on the 52-week challenge to activate it.
  • You can turn it on or off like a light switch. Before you turn it on, you’ll be able to see the calendar mentioned above, which shows exactly how much money you’ll be saving each week.
  • Plum say that if they aren’t able to create a deposit for a specific week, the amount for that week won’t be skipped. They will deposit that amount the following week instead, so you won’t miss out.

Closing Thoughts

In my view the Plum 52-Week Savings Challenge represents a great opportunity to save a handy lump over a 12-month period. You could use this to pay for a well-deserved holiday or other one-off purchase, or even put it towards Christmas 2025! 

Using the app automates the whole process, making it as quick and painless as possible. But of course you can switch it off any time if your circumstances change.

As always, if you have any comments or questions about this blog post, please do leave them below.

Disclosure: This is a sponsored post. If you click through any of my links and set up an account with Plum, I may receive a modest commission for introducing you. This will not affect in any way the terms you are offered. 

Plum is the trading name of Plum Fintech Limited, which is registered with the FCA (FRN 836158) to carry out payment services activities as a Registered Account Information Service Provider, to carry out payment services activities. Plum is a distributor of Modulr FS Ltd and an agent of PayrNet Ltd for the purposes of the Plum Card. Modulr (FRN 900573) and PayrNet (FRN 900594) are regulated and authorised as Electronic Money Institutions by the FCA. Plum Money is the trading name of Saveable Ltd, which is authorised and regulated by the FCA (FRN 739214) to carry out investment and credit broking services. T&Cs apply. Visit www.withplum.com.

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