5% savings, beat water bill rises, track Santa, longest 0% debt shift in 18mths, Christmas sales

Plus... Car Finance Mis-selling News, cheap cinema tix, new cheapest energy fix, charity gifts

                                                           

23 December 2024 | View in browser

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THE TOP TIPS IN THIS EMAIL Water bills up 20% next year, yet there are ways to save... - Only pay for what you use - save £100s - Help's available for low-income homes - Save water with 100,000s of freebies New. Cheapest energy fix - save 9% Track Santa on Christmas Eve News. Leasing now included in car finance mis-selling complaints Deals Predictor: Big Christmas sales New. Shift debt to 31mths 0% + free £20 8 days left. Use/lose Co-op rewards cash New. Top 5% easy-access savings 50% off Oxfam Unwrapped charity gifts Martin's new pod: Crash course in Inheritance Tax, pension savings & more How to win at board games this Xmas! Cheap Christmas hols cinema tickets Faulty goods? Don't be fobbed off with 'it's out of warranty' - Celene got a replacement £400 fridge-freezer This week's best buys: free £175 bank switch, 50GB Sim £4/mth & more Money Moral Dilemma: our child won big on Premium Bonds - should they share with their sibling? BEST BUYS & TOOLS MSE Cheap Mobile Finder Credit Club including free credit report 0% balance transfers Compare broadband deals MSE Car Insurance Compare+ Best bank accounts Top savings accounts Credit cards for bad credit Credit Card Eligibility Calculator Loans Eligibility Calculator Mortgage comparison Compare travel money Cheap Energy Club Best Sim-only deals

(Bad) News. Water bills up 20% next year, typically £86 more, yet don't think there's nowt you can do... 9 need-to-knows to cut costs - some save £500+ The anger was palpable last week as the water regulator Ofwat announced its five-year plan for English & Welsh water costs. Overall, it's permitting firms to increase bills by a typical 36% over that period, but much of that rise is front-loaded, which means the big jump comes in April 2025 with a typical 20% rise. Within the water industry, as Martin says, "perversely, we may have the worst of both worlds, with privatisation but no competition" - the fact you can't switch supplier leaves many thinking it's a done deal when it comes to saving money. It isn't. Our Cut water costs guide is overflowing with tips, with the need-to-knows covered here. Water you waiting for? 1. Next year's rise varies hugely depending on where you live: the worst is up 44%; the best a fall of 3%. Ofwat says rises will help pay for a £104 billion upgrade of the water sector to deliver "substantial, lasting improvements for customers and the environment". It's less than water firms wanted (and with Thames Water's solvency possibly teetering... water is in crisis), yet for consumers it feels like another hammer blow. We've a full table of how much each firm will increase bills by, both next year and over the full five years. It's worth checking. 2. The Big Saving: Millions in England & Wales can save £100s switching to a FREE water meter. In England and Wales you can get a free water meter, which measures how much you use, so you're billed accordingly. If not, you'll get a water bill. These are based on the old pre-1990 rates system - which is roughly your home's rentable value, essentially a proxy for how much your property's worth. So those with bigger homes tend to pay more, even if they're using little water. Which is why Martin's rule of thumb says... ... then there's a good chance you can save, so use a water meter calculator. For some, especially in bigger houses with few people, the savings are large. Amanda emailed us: "We moved to a water meter and our bill has gone down from £119/mth to £25/mth [a saving of £1,128/yr]. Thanks MSE." If a water calc shows savings are likely, you can ask your firm for a more formal assessment if you want. Can you switch back if it works out worse? If you voluntarily fit a meter, with most (though not all) firms you've up to two years to change your mind and go back without penalty (see firms' water meter switch-back policies). Though if you moved into a home that already had a water meter, or are in a compulsory metered area, you are stuck.  3. Told you can't get a meter? In some ways, that's the best route... Some with shared pipes or in flats are told by water firms they can't "practicably" have a meter fitted. If so, ask for an 'assessed charge bill', which works out how much you'd likely pay if you had a meter. Then, if that's cheaper than your normal water bill, switch to it. If not, don't. Luke, pictured, emailed us a couple of weeks ago to share his success: "I became a first-time buyer in October 2024, so I'm new to utility bills etc. My water company wanted to charge me £50/mth for just me in a two-bed flat. I called them to negotiate - they told me that's the price and to deal with it. "I looked on MSE and saw the value of getting a water meter installed. So I booked an appointment (which they hid from me in the first place), and because they could not fit the meter, I'm now on assessed charges of around £100/yr, saving me £500/yr that quickly. "Seriously, your website really looks out for consumers, no deceit or marketing ploys, which a lot of us have become savvy to from other places. Thank you for all your help." 4. Live in Scotland or Northern Ireland? There are no domestic water charges in Northern Ireland (it's done as part of domestic rates), so there's no need for a meter. In Scotland, water bills are based on Council Tax bands and included in a 'combined service charge' along with other services. While you can have a water meter installed, it's actually quite pricey, so unless you live alone in a manor-type property, estimated payments are cheaper. 5. Are you in one of up to 2 MILLION homes on low incomes or Universal Credit missing out on saving £100s with a social tariff? Social tariffs are offered by all water firms and can reduce what you pay by up to 90% by lowering or even capping the cost of water bills or water meter charges. Yet there are almost 2 million eligible households missing out on help, according to the Consumer Council for Water. See firm-by-firm social tariff help. As Shirley emailed earlier this year: "Due to your advice, I changed my mother-in-law to a social tariff for her water bill. She has moved from £19/mth to £7/mth [a saving of £144/yr] and no longer has to worry about how much water she's using. Thank you for all the useful information." 6. Or many qualify for WaterSure help, typically worth £160. To be eligible, you need to have a water meter, receive benefits, and EITHER have 3+ children OR a medical condition such as Crohn's or eczema which means you need to use more water. If that's you, you may be able to have bills capped under the WaterSure scheme. The average saving's £160/yr according to benefits analysts Policy in Practice. As Nyla emailed: "Thank you for writing about being able to get help with your water rates. I applied for my mum - she was eligible for the WaterSure scheme as she receives Pension Credit and has a medical condition. I've been told that they will now cap her water rates at £300." 7. 100,000s of water-saving freebies are available. Households across much of the UK can bag a range of FREE water-saving gadgets - eg, shower heads, water butts, tap inserts etc - and there are usually 100,000s available. See check for water-saving freebies - though it is hit-and-miss depending on which water company's area you're in.  8. Can you get a sewerage rebate? It's generally assumed that used water creates a similar amount in sewage (what goes in, must come out!). Yet if you've a way of draining or storing water - such as a soakaway, cesspit, pool or big garden - some of the water you're using isn't going into a public sewer, so you may be able to claim a rebate worth roughly £35/yr. 9. Cut your water use - we've 30 ways to save. For those on a water meter, reducing use saves you money directly. But even if you're not, much of the water we use is heated, so cutting water reduces energy bills (and helps the environment). There are lots of ways to cut usage - here are just a few: - Don't wallow, shoot into the shower. A quick shower uses far less water than a long soak in the tub. - Running your tap to temperature? Fill up empty bottles while you wait for it to heat up and use round your home to water plants or for the kettle. - Save washing up. Instead of washing up as you go, save it up and do it in one go to minimise the amount of hot water used. For a full list see our 30 tips to cut your water usage. -------------------------- PS: A short note from the boss... Over to Martin: "I'm taking a break from work over the festive period. So while I started this email off, I've left the rest of it, like all the emails you'll get until 2025, in the overly-capable hands of the MSE team. More importantly though... "I'd like to wish all who celebrate a joyous, peaceful and warm-hearted Christmas and Happy New Year. Thank you for your continued support. For those who find this time of year difficult, grief-filled, or lonely, may your passage through it be easy, with more smiles than you expect."

 

 

DON'T believe the fake 'Martin Lewis' or 'MSE' ads Lots of scam ads litter social media and even newspaper websites - some of these lie that we or Martin promote Bitcoin, binary trading etc. See Fake ads warning.

 

 

 

New cheapest energy fix The Energy Price Cap RISE hits 1 January, but you can beat it by locking in for a year to save 9% The Energy Price Cap, which dictates the rate eight in 10 homes in England, Scotland & Wales pay, will rise by 1% on 1 Jan - meaning most of your bills will rise too. While it's only a slight increase, energy bills are still shockingly high - plus it follows a 10% rise in October. Yet the deals you can compare & switch to are far cheaper than the Cap. That's why Martin's been calling it a Pants Cap - stay on it and you'll miss out on big savings. On a Price Capped Direct Debit tariff (most are)? You can DEFINITELY save. The Price Cap applies to the 80% of homes in England, Scotland & Wales on standard variable tariffs - the default deals you're put on if you never switch, or your fix ended and you did nowt. If in doubt, you're likely on the Cap, as only those already on fixes or specialist tariffs AREN'T. To help, our comparison tool shows whether your current tariff is capped. The Cap itself is regional (see full Cap rates) and sets a max daily standing charge and max cost per unit of gas & elec - not a total cap on what you pay. Today's cheapest standalone one-year FIX is 9% cheaper than the 1 Jan Cap. A fix means the rate you pay can't change (though if you use more, you pay more). Savings below are averages, so all links go via our comparison where you get a bespoke result... The cheapest standalone fixes (Eng, Scot, Wales) (1) Links go via Cheap Energy Club for a personal comparison & as it'll be updated, with things changing rapidly E.on Next Fixed 12m v40, 1yr fix. No smart meter needed. Dual fuel or elec-only | Monthly Direct Debit only | Online account  You can also pay by quarterly Direct Debit or cash/cheque, but it's slightly more expensive and E.on doesn't put this version in comparisons (link goes direct). Switchers save avg 9% compared with 1 Jan Price Cap, including £20 MSE cashback for new customers (2). We can't switch existing customers, so there's no cashback, without which the saving is 8%. £50/fuel early exit fees British Gas Fixed Tariff v18, 13mth fix. No smart meter needed. Dual fuel, elec-only or gas-only | Monthly Direct Debit / cash / cheque New & EXISTING British Gas customers can save 8.5% compared with 1 Jan Price Cap, including £20 MSE cashback (2). £50/fuel early exit fees E.on Next Fixed 18m v12, 18mth fix. No smart meter needed. Dual fuel or elec-only | Monthly Direct Debit | Online account You can also pay by quarterly Direct Debit or cash/cheque, but it's slightly more expensive and E.on doesn't put this version in comparisons (link goes direct). Switchers save avg 8.5% compared with 1 Jan Price Cap, including £20 MSE cashback for new customers (2). We can't switch existing customers, so there's no cashback, without which the saving is 7.8% (3). £50/fuel early exit fees Outfox the Market Merry Fixmas - Outfox the Christmas deal (Dec 25) Fix'd Dual v1.0, 1yr fix. No smart meter needed. Dual fuel only | Monthly Direct Debit only Save avg 8.5% compared with 1 Jan Price Cap. £25 dual-fuel early exit fees (1) Full details in our energy comparison, which also includes non-standalone tariffs - ie, those that require you to get other products, eg, broadband or boiler cover, to get the price. (2) For some providers we are paid to switch you. You get the same price as if you went direct, except we give a chunk of what we're paid to you, so it's actually cheaper. Win-win. (3) The E.on 18mth fix price is slightly cheaper than the British Gas fix - yet as we discount the MSE cashback over the longer period, when you include that, it's a fraction more expensive on average use. Q. The savings are compared with the 1 Jan Price Cap... what happens to the Cap after that? Each Cap lasts three months. Most analysts' latest predictions are that the Cap will drop slightly in April and July and then stay roughly the same in Oct - though the further out you go, the more crystal-ball gazing it is. Overall, that means over the next 12mths, if the predictions are right, on average you'll pay around 1% less on the Price Cap than you do now (2% less than 1 Jan Price Cap). For far more info and a Q&A, see Should you fix your energy? Fixing isn't your only choice to save - for some, other tariff types will win. For most, it's the simplest and safest way to guarantee a saving, but there are alternatives, including discounted Price Cap tariffs (one of which lowers standing charges), specialist electric vehicle tariffs, and the Octopus rapid price-change tariffs, Tracker and Agile (potentially big savings for sophisticated users, but not without risk). Even with cheaper tariffs I'm struggling to pay bills - what do I do? It's always worth talking to your energy firm. Be polite and straight with it, and make sure you explain if you're vulnerable. There can be hardship & debt grants from energy suppliers. For far more guidance, see our full What to do if you're struggling to pay energy bills, Energy saving tips and Energy mythbusting guides.

 

Track Santa as he delivers presents on Christmas Eve. Peek online or download a free app to track Santa. News. Leasing now included in car finance complaints, as regulator announces complete 'pause'. The Financial Conduct Authority has formalised its pause on car finance commission disclosure complaints till Dec 2025, and this now includes leasing, increasing the potential number of complainants. It follows the Court of Appeal's ruling that if agreements didn't tell consumers the full commission details and amount, they were unlawful. Yet it's a waiting game to see if the Supreme Court overturns that decision in spring. The pause doesn't stop you complaining - it just delays firms needing to decide on it. Discretionary Commission Arrangement (DCA) complaints are separate. These are the 40% of cases where dealers could increase customers' interest rates to boost their commission (which doesn't include leasing). This is more likely to see a mass redress scheme, and in Martin's view is where everyone should start, so use our free tool to ask if you had a DCA. When will the big Christmas sales start from Amazon, Boots, M&S, John Lewis & more? See our Christmas Deals Predictor. Plus sales already on from Asos | H&M | Ikea. New. Longest 0% balance transfer - shift debt to 31mths INTEREST-FREE + get £20 cashback. You can shift existing credit card debt(s) to Barclaycard's up to 31mths 0% for a 3.45% fee - it's been 18mths since we've seen a card as long. And if you transfer £2,500+ in the first 60 days you'll get £20 cashback. Can pay off quicker? The cashback's also on the longest NO-FEE card, Barclaycard's up to 14mths 0%. Both are 'up to' cards - links go via our eligibility calc: if 'pre-approved' there you'll definitely get the full 0% length, if not it can be shorter. More options in Top balance transfers. Golden rules: Repay at least the monthly min & clear the card before the 0% ends, or both jump to 24.9% rep APR interest. 8 days left. Co-op shopper? Use your member rewards cash... or lose it! See Co-op alert. New. Top 5% easy-access savings. App-only bank Chase* is paying 5% to newbies - just open its free current account (it only does an ID check, not a credit check & you needn't switch to it) to access the savings. It also gives 1% spending cashback & has a top debit card for overseas use. Though remember to check the savings rate on 19 Feb when it's set to fall to 4.75%. See full Chase review. Pay tax on savings? A cash ISA's a savings account you never pay tax on, and you can currently get the same top rate with Moneybox's 5% cash ISA... though here you're limited to just three penalty-free withdrawals a year. More options in Top cash ISAs and Top savings. 50% off Oxfam Unwrapped charity Xmas gifts, eg, 'Let's build peace' gift card £10 (normally £20). Make a donation in someone's name and the full amount still goes to the cause, but at a lower cost to you. See this plus many more ways to do good at Xmas. Martin's new pod: A crash course in financial need-to-knows... Inheritance Tax | Pension savings | Debt pecking-order | Life insurance | Compound interest & lots more... It's a 'Tell Us' special - thanks to all who suggested topics for Martin to cover, all in the new The Martin Lewis Podcast. Listen via BBC Sounds | Spotify | Apple or wherever you get your Martin fix.

 

 

DID YOU MISS? - Grab a bargain with the Amazon Resale Discount Finder - Protect your phone from thieves - Christmas veg price war - pay from 8p a pack - Due a share of £92m of unclaimed Premium Bond prizes? - Regulator proposes zero-standing-charge energy tariffs

 

 

How to win at board games this Christmas! Martin's much-discussed masterclass is free to stream on ITVX. For Monopoly hacks, Scrabble strategies, Connect 4 cheats & backgammon bootcamp, watch Martin Lewis: How to Win at Board Games! Cheap cinema tix - see Mufasa, Sonic 3, Wicked etc this Christmas. See 28 cinema savers. Faulty goods? Don't be fobbed off with 'it's out of warranty' - MoneySaver Celene got a new £400 fridge-freezer. Martin always says, "warranty schmarranty - if it's faulty the warranty's irrelevant", as our success of the week from Celene shows: "A huge thank you. I had frost build-up issues with my fridge-freezer and contacted the manufacturer many times. Recently, the problem got so bad, I was unable to open the freezer drawers. The firm said there was nothing it could do as I was out of warranty. Following your SAD FART guidance, I got an apology and a £400 replacement fridge-freezer. A godsend & just before Christmas too." If we've helped you save (on this, or owt else), send us your successes.

 

 

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AT A GLANCE BEST BUYS 0% balance transfers Longest 0%: Barclaycard (check eligibility) up to 31mths 0% + £20 cashback for some, 3.45% fee, 24.9% rep APR interest No-fee 0%: Barclaycard (check eligibility) up to 14mths 0% + £20 cashback for some, 24.9% rep APR Best bank accounts Free £175 + TOP service: First Direct 1st Account Free £175 + 5% interest: Nationwide FlexDirect Broadband top picks Fast fibre (100Mb+): Virgin '£18.83/mth' On Universal Credit or similar? Check all discounted social tariffs Car insurance Try our Compare+ Car Insurance tool Cheap loans Cheapest for £5,000 to £7,499: Santander (check eligibility / apply*), 7.2% rep APR interest Cheapest for £7,500 to £15,000: Tesco Bank (check eligibility / apply*), 6.1% rep APR (for Clubcard holders) Top savings accounts Top cash ISA: Moneybox (app-only) 5%, min £500 Top standard easy-access: Atom Bank 4.85%, no min Top one-year fix: Habib Bank Zurich 4.8%, min £5,000 Top energy deals Try our relaunched Cheap Energy Club Cheap Sims Up to 3GB data: Lebara, '£2.80/mth' for 3GB 4GB to 9GB data: Lebara, '£3.08/mth' for 5GB 10GB to 30GB data: iD Mobile, '£3.63/mth' for 25GB 31GB+ data: iD Mobile, '£4/mth' for 50GB

 

 

MSE NEWS - Top story: Base rate held at 4.75% - what it means for your mortgage and savings

 

 

MONEY MORAL DILEMMA Our child won a high-value Premium Bonds prize - should they share it with their sibling? We've bought Premium Bonds in the names of both our children as a way of saving for them. It's been going well, with both children winning small prizes most months. Recently though, one of them won a much bigger prize, so they now have much more saved than the other. Should this be split between both children, or is that our child's decision to make when they're old enough? Enter the Money Moral Maze: Should our child share Premium Bonds prize with their sibling? | Suggest a Money Moral Dilemma (MMD) | View past MMDs

 

 

MERRY CHRISTMAS - AND AS OUR GIFT TO YOU, WE'VE SUPPORTED A GOOD CAUSE ON YOUR BEHALF That's all for this week, but before we go... to wish you a Merry Christmas, we've donated a sizeable sum to Unicef, which will go to help children and families across the world. With that in mind, if you still need to buy for family and friends and you want to avoid tat, why not agree to give to good causes in each other's name instead and do a really good deed? Our Charity gift guide is packed with lots of ideas. We hope you have a wonderful Christmas time and a financially fabulous New Year, The MSE team

 

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