3 Council Tax cost-cutters; Martin’s Jan Debt-Buster; BIG flight, train & Eurostar sales; Will you get £150 off energy?; travel insurance warning; Pizza Express 2for1

For the millions dreading the flip-flapping of Christmas credit card and other bills through the (virtual) letterbox this month... there's a little good news. Recent UK base rate cuts mean the current longest 0% debt switch beats any on offer since 2018, with up to 38mths interest free available.

So, as it's a good time to cut debt costs - especially as soonest dealt with is soonest mended (or at least improved) - here's my annual January Debt-Buster! If you owe money, the key rules are reduce the interest, repay as quickly as possible, and try not to borrow more. Though if you're panicked about debt, and it's all too much, jump straight to debt crisis help. In this Masterclass I'll go through...

1. Switch Credit Card Debt to 0% til 2029 (incl poorer credit scorer deals)
2. Cut hideous 40% Overdrafts (which sadly is most of them) to 0%
3. Cut the cost of Existing loans
4. Is it worth Consolidating card debts on to a loan?
5. Help if struggling with Buy-Now-Pay-Later
6. Five fundamental Debt Fixes
7. Free debt crisis 1-on-1 Help

A 0% balance transfer is where you get a new credit card to pay off debt on your existing card(s), so you owe it instead, but with no interest cost for a set time. This way, more of your payments reduce the actual debt - getting you debt-free quicker (just don't borrow more). And deals right now are a touch better than any we've had for years...

Apply via our eligibility calc to see who'll accept you. It shows which cards you'll most likely get, helping protect your credit score.
Get the lowest one-off fee within a 0% long enough to clear the debt. If you're unsure, just play safe & go long.
Usually rejected? MSE's free Credit Club (also via the Apple | Android MSE App) can analyse the problem (there's an eligibility calc there too).

Top 0% new customer balance transfer deals Links via our eligibility calc to see if you'll be accepted (except TSB)
LONGEST 0% cards with a DEFINITE 0% period. In other words, if you're accepted you always get the full 0%.
New. Barclaycard 36mths 0% (3.45% fee). 24.9% rep APR after 0% ends. Plus, transfer £2,500+ within 60 days and you'll get £25 cashback (covering some of the fee) & 12mths' Apple TV. HSBC 35mths 0% (3.19% fee). 24.9% rep APR after. Virgin 34mths 0% (2.95% fee). 24.9% rep APR after.
LONGER 0% card, but these are 'up to' deals. With these cards, not all accepted customers will get the headline 0%, some get a worse 'backup' rate. With MBNA, our eligibility calc (link goes via it) shows if you'll get the full 0% or not before applying. Yet TSB systems mean it can't go in the eligibility calc - it has one on its site, but it won't guarantee the 0% length.
New. TSB 'up to' 38mths 0% (3.49% fee). 24.9% rep APR after. Backup rates: 35mths 0% and 32mth 0% (both 3.49% fee) though the rep APRs after are higher at 28.9% and 30.9%. It's not available via our eligibility calc so link is direct. New. MBNA 'up to' 36mths 0% (3.29% fee). 24.9% rep APR after. Backup rates: 35mths 0% or 20mths 0% (both 3.49% fee), 18mths 0% (3.79% fee), or 16mths 0% (3.99% fee). The eligibility calc will tell you the 0% length before you apply.
Top LOW or NO FEE 0% balance transfers. Winners for those who can repay far more quickly (ie, within the shorter 0% length).
Virgin definite 18mth 0% (0.95% fee). 24.9% rep APR after. Tesco definite 15mth 0% (0.75% fee). 24.9% rep APR after Barclaycard up to 14mths 0% NO FEE. 24.9% rep APR after 0%. Backup rate: 7mths 0% (no fee). The eligibility calc will tell you the 0% length before you apply. PS: You may get 15mths 0%, £20 cashback & a year's Apple TV if you apply & are accepted via CTM and transfer £2,500+ Virgin 12mths 0% NO FEE. 24.9% rep APR after.

There are special poorer credit score balance transfer 0% deals. If you've got a poor credit history and often get rejected, always try our balance transfer eligibility calc as it will show you which cards are most likely to accept you.

These currently include Capital One's definite 23mths 0% (2.9% fee) then 27.9% rep APR after, and Vanquis' definite 19mths 0% (3.48% fee) then 29.9% rep APR after. Neither exclude those with County Court Judgments, defaults, or cleared bankruptcies, but whether you'll be accepted or not depends on other factors too.

Do note the rep APR rate after the 0% ends is higher on poorer credit scorer cards than standard cards. So do compare that with your current card's APR. If that's lower, ONLY shift debt you're sure you can clear within the 0% time. If it's higher, shift the max allowed.

Quick balance transfer FAQs, full help in best balance transfers.
Q. Is it worth applying if my eligibility odds are low?
Q. What if my credit limit isn't big enough?
Q. Can I shift debt to existing cards too?

ALWAYS follow the Balance Transfer Golden Rules
a) Never miss the min monthly repayment, or you could lose the 0%.
b) Aim to clear the card before the 0% ends, or the rate rockets.
c) Don't spend or withdraw cash. It usually isn't at the cheap rate.
d) Transfer at or within 60 to 90 days of application (check).

Debit cards are debt cards too if you've got an overdraft, and most UK overdrafts are far costlier than typical credit card interest. There's very little competition between banks, with almost all charging 40% interest!

So, for many, a priority is to clear overdrafts as they're so expensive (even if it means making just minimum repayments on credit cards, so the cash saved on that reduces your overdraft), though before that check out these four ways to cut the interest costs.

a) Switch banks for a possible 0% £250 overdraft & £175 FREE cash. First Direct* gives accepted new switchers a free £175 (see eligibility criteria), and many get a £250 ongoing interest-free overdraft too (it's the standard 40% above that). It has an overdraft eligibility checker on its site to show if you'll likely get it.

That means if you tend to end up a few hundred quid overdrawn at the end of the month, the £175 should help clear that and the remainder will be interest-free. Great for smaller overdrafts, or those who regularly just dip into their overdraft facility.

It won't switch the overdraft over for you. You'll still owe your old bank, though all your Direct Debits and standing orders will be moved as normal. Expect your old bank to ask if you want to pay off the overdraft at that point, or keep the account open while you do (it varies by bank). If you do keep it open, payments to the old account are unlikely to be forwarded so you may need to arrange to move them yourself.

PS: Launched today (Tue) is a £250 switch offer from Club Lloyds which also has a 0% overdraft 'buffer' but only to £100. Still, if you only occasionally dip into your overdraft, it's a decent deal. It's tougher to get, though, as the minimum income criteria is higher.

b) Shifting your overdraft to a 0% credit card. There are two routes...

Use a 0% money transfer card. This is a rare function where you get a new card that pays money into your bank account, letting you clear your overdraft, so you now owe the card instead but at 0%. The current top is Tesco 14mths 0% (3.99% fee) then 24.9% rep APR after the 0% ends. As it can be complex, I'd strongly urge you to first read our full 0% money transfers guide, but as a minimum do clear it within the 0% period and follow the balance transfer golden rules above.
Use a 0% spending card (but only if you've got financial self-discipline).The top 0% spending cards, eg, M&S 25mths 0% are interest-free longer than money transfers, and have no fee, so are far cheaper. Yet to do it right takes financial discipline (if that's not you, don't). Here's the recipe to transfer an overdraft to it:

- Use the 0% Spending Eligibility Calc to see if you can get one.
- Do all normal spending on the card up to the credit limit (it's not a reason to spend more), making only min monthly repayments.
- As you're using it rather than your bank account, your income should build up in that, reducing your overdraft.
- Once the overdraft is clear, stop using the card.
- Then put any extra money towards clearing the card debt before the 0% period ends and the interest jumps to the 24.9% rep APR (though that's still cheaper than most overdrafts).

c) Treat overdraft borrowing like any other debt. Try to repay a set amount each month, eg, £50 (meaning you should always start the next month with a £50 smaller overdraft than the one before).

d) Consider moving Direct Debits to just before payday if you can. The idea is you're overdrawn for less time so costs are lower. And these are just the tip of the iceberg. See our overdraft cost-cutting tips for more help.

After four cuts in the UK base rate over 2025, loan rates have improved a smidge. So, if you've got a loan, it's worth a five minute check to see if you can cut its cost, especially if your creditworthiness or income has improved from when you got it. Full help in Cut existing loan costs, but in brief...

Start by quickly comparing your loan's APR to the cheapest available, if it's more expensive follow my abc below.

The current cheapest loans

£1,000 to £2,999: Zopa (via John Lewis) 9.9%, Santander 13.5% - though a 0% credit card loan may be cheaper.
£3,000 to £4,999: Novuna 9.7%, Tesco 9.8%, M&S Bank 9.9%.
£5,000 to £7,499: M&S Bank; Santander, Tesco, all 6.9%.
£7,500 to £25,000: M&S Bank 5.8% (5.7% from Wed), Tesco 5.8%.

All these loan rates are REPRESENTATIVE APR, which means only 51% of accepted customers need get that rate, so you may apply and find your rate is higher. It's tough to do much about that (a few lenders offer guaranteed rates via our eligibility calc, but not enough).

a) Ask your current lender for a 'settlement figure'. That's how much it'll cost to clear your current loan, including any early repayment costs. This tells you how big a new loan you'll need to get to clear it.

b) Find the cheapest loan for the 'settlement figure' & whether you'll be accepted. Our Loans Eligibility Calc shows acceptance odds for many loans - do check before applying.

c) Find out whether the new loan's cheaper than your current one. Use our Loan Switch Calculator to do it for you. Or if you want to DIY, multiply your monthly repayments by how many months you have left (ask the lender if you don't know) to find how much you'll pay if you stick. Then compare that with what the new loan repayments will cost.

What about mortgages & student loans? Both are huge subjects in their own right, and I wanted to focus today on more immediately unsecured potential problem debt. Yet here are the key links: Mortgages: Best-buy comparison \| Remortgage guide \| Mortgage Calcs Student loans: Should I overpay? \| Can you reclaim student loans?

The cheapest balance transfer credit card deals are interest-free; the cheapest loans for similar amounts are 7%. So, all being equal, balance transfers cost less, as long as you can repay within the 0% period or keep shifting the debt to another 0% when you need to.

Yet for some, in the real world, the problem can be the monthly repayments are too high. While it's best to repay more each month, as it clears debt quicker and you pay less total interest, I understand that isn't always possible.

With larger debt on cards, the minimum repayments can be higher than the fixed repayments for a loan. This is why some look at 'consolidating' card debts into a cheap loan (though many in this position may struggle to be accepted for one). Eg, if you owe £10,000...

- on a card, the minimum repayments are around £270/mth
- on a 6.2% loan over 5 years, you'll pay a fixed £195/mth

Yet in time as you repay the debt, the card minimum repayments would drop, as they're a percentage of what you owe, so they'll eventually be lower than the fixed loan repayments (though with cards always aim to repay a higher fixed, it'll clear the debt quicker). So...

- Loans pros: Simplicity and enforced repayment discipline. Get one, keep making the fixed repayment, and you'll clear it within the time.
- Card pros: Top balance transfer cards, done right, have lower interest costs (provided you can keep getting 0% and fix your repayments).

I'd always hedge for cheapness if you possibly can, as you'll end up with more of your money in your pocket, rather than the lender's, but I accept the reality means lower repayments could help for a few years.

PS: With cards, creditworthiness mainly decides whether you're accepted, while affordability (ie, do you have enough income?) affects the credit limit you get. With loans, because you apply for a fixed sum, both creditworthiness and affordability affect acceptance (eg, accepted at £3,000 but not at £10,000). You can check both for free via the MSE Credit Club (also via the Apple | Android MSE App).

Buy now, pay later (BNPL) from the likes of Klarna, Clearpay, PayPal, Zilch, and more is interest-free, so there are no costs to be cut. Used right, it's an easy way to spread needed payments for a short time.

Yet the worry is many don't think of it as a debt, take them out willy-nilly and you can get into trouble, especially over the Christmas period. And now, in Jan, some struggle to find the cash (especially as December paydays are often early so the money must stretch longer).

The big firms do offer some options to delay repayments, though be aware this can reduce the gap between that payment and the one after. The italics is what each firm calls its scheme.

Firm	Temporary help	Severe debt help?
Klarna	Extend due date: extend the payment date by up to 10 days (once per order). No current credit file impact.	Up to 60-day Settlement Pause or a longer-term reduced payment plan of up to 36 months for those who need more than 60 days; Klarna use blocked. Both will show on credit file.
Clearpay	Move Payments: extend the payment date by up to 7 days via the website or app once per order (can be used three times in a calendar year), or by up to 21 days by contacting it directly (this can be used once per order and up to three times in a 90-day period). No current credit file impact.	Access to a longer 30-day breathing space support scheme if struggling. No credit file impact.
PayPal Pay in 3	Payment Holiday: extend the payment date by up to 1 month (once per order), with no credit file impact. May be blocked from new Pay in 3 plans until payments restart.	No other debt help specified.
Zilch	Snooze: extend payments by 4 days (£0.75) or 8 days (£1.50); multiple snoozes allowed per order (but only once per payment, and not on the first payment). No current credit file impact.	Longer-term repayment plans are available on case-by-case basis (most are under 12 months). This will impact your credit score.

Many BNPL firms are unregulated, which means you've less legal protection and can't get the ombudsman to adjudicate over complaints. I and many others campaigned for change and, in October 2024, the Govt thankfully announced it was coming, but won't be in force until 15 July 2026. More info in Buy now, pay later help.

These are for when you can pay your debts; if not, jump to debt help...

a. Don't look at debt in isolation. No one gets into debt for its own sake; it's to pay for other things. So, you have to look across all your expenditure... go through everything you spend money on and see whether you can do it cheaper or better. Our money makeover takes you through some of that.

As well as cutting costs, get control of all your spending. The best way is to do a budget, looking across a year, to see where the cash is going. Then, what really counts is how you stick to it - many who have tried swear by (or at) my piggybanking system.

b. Prioritise paying off the highest interest rate debt. Don't spread your repayment money equally across all debts, nor pay off the biggest first. Where you put the money can have a huge impact. So, first list all your debts, including your overdraft, in APR order from highest to lowest.

Then, if possible, focus every penny of spare cash at trying to clear the debt with the highest interest rate (APR), as it's growing quickest, and just pay the minimums on all the others. Once the highest one is clear, shift focus to clearing the next highest.

c. Danger. Minimum repayments on credit cards are evil genius. They're designed to keep you in debt for decades, as you repay a percentage of what you owe, so payments reduce with the debt. On a £5,000 debt, making a typical minimum repayment, you'll keep paying for 35yrs at an interest cost of £9,000 (try our Minimum Repayment Calc for your situation).

Yet if you fixed your repayment at £200, approximately the amount of the min repayment in that first month, you'd see that debt gone within three years, and just £1,600 interest.

Though if you've got multiple debts, as explained above, sometimes it is tactically correct to make minimum repayments.

d. Boost your credit score... You may then qualify for better deals in future. Join MSE's free Credit Club or, better, via the MSE App (Apple | Android), which will analyse and show you what to do.

e. Still got savings? Use 'em to clear costly debts. Some have an emotional attachment to having some savings ahead of clinical financial decision-making. Yet saving just means you're giving your bank a loan. So, if your debts costs are at a higher rate than your savings earn, repaying the debt with the savings will likely add up.

Never is this clearer than with a costly credit card. You may think if you clear it, that'll leave you with no emergency savings. Yet just keep the card open. That way, the worst that can happen is you use the card again in an emergency - at least you saved interest in the meantime. See Pay off debt with savings? and Pay off mortgage with savings?

The solutions above all involve you being in a functional relationship with your debt, ie, you can afford to repay and just want to cut the cost. But for some, a different tack is better - full guidance in our Debt crisis help guide, but here are my three key questions to help you decide which route is right...

- Do you struggle to meet minimum monthly payments?
- Is your total debt (not mortgage/student loan) over 1yr's salary?
- Do you have sleepless nights or depression/anxiety over debt?

If you answer 'yes' to any of these, forget the solutions above, and instead get free, 1-on-1 debt-counselling help from Citizens Advice | StepChange | National Debtline | CAP (which gives emotional support too).

They're there to help, not judge. As I've said for many years, the most common thing I hear after is "I finally got a good night's sleep". Just go for it. If you're still not sure try reading inspiring stories in our Debt-free wannabe forum first. Do also see our Mental Health & Debt guide.

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.

For years Martin's TRAVEL INSURANCE warning has been get it

ASAB

(As Soon As you Book)...yet what counts as ASAB for single-trip & annual cover? And what's cheapest?

January is the peak month for booking holidays (see cheap flights | cheap hotels | cheap package holidays), yet the most important warning is about travel insurance. Of course, this is MoneySavingExpert, so our focus below is on getting the cheapest travel insurance deals, but before that...

Martin Lewis, MoneySavingExpert.com founder, who wrote this article. The link takes you to his biography page on MoneySavingExpert.com.

Martin: 'Get travel insurance ASAB!'

The 'As Soon As You Book' rule isn't just so you don't forget later. It's because one of the big protections of travel insurance is to cover you in case something happens before your trip that means you can't go.

Each year in the run-up to summer I get questions like this: "I've been diagnosed with a serious condition (eg, cancer). We can't go on our holiday now as I need treatment, but the airline/hotel won't give us a refund. What do we do?" Sadly, unless the ticket's flexible, there's no right to a refund, as nowt's 'faulty' with the holiday, so I point them to travel insurance. Yet some say: "but we haven't got round to getting it yet!" And that's the painful moment, as then there's often little left to try.

What counts as having travel insurance in place ASAB? Many people ask me this, so put simply...

Single-trip policies: You just get insurance to cover a specific future trip (eg, 10 to 17 Aug) and once that's paid for, you're done. If the trip's over a year ahead, see single-trip policies for over a year in advance.
Annual policies: You should have a live policy covering all the time up to and including the end of your trip. That means if you don't already have one, get an annual policy starting when you book the holiday (or as soon as possible after), not the date you go away.

If you've already got an existing policy that covers you beyond the date you return from your holiday, great, you're done. But if it ends before your return from the holiday you've booked, you need cover that runs straight on. Either renew or take out a new policy to start the day your old one ends. Most policies (including all we list) don't exclude issues that happen within the cover year for booked trips, even if the travel is after your renewal date (a few do, so check).

As a final note, while ASAB is the safest route, it isn't 100% foolproof. Some firms may cancel cover if you're diagnosed with a severe illness before you go.

Cheapest travel insurance policies
(including families, over-65s & pre-existing conditions)

Below we list the cheapest bog-standard, no-frills, FCA-regulated options we can find that meet our minimum cover levels, judged purely on price, NOT feedback - for those not fussed about extras or add-ons and just see it as a backstop.

Want a higher-end policy? For stronger feedback, to cover airline failure, natural disasters etc, or higher cover levels, go straight to our Travel Insurance Finder tool, which includes these options. Exact prices depend on age and circumstance, so we give the three cheapest options - do check at least a couple.

Annual policies: If you'll go away at least twice this year, even just for weekends, annual cover is usually cheapest. It covers all trips away, usually under a duration limit (eg, 30 days per trip).

For under-66s: Europe single: from £10. Family worldwide: from £93. Check Coverwise (Bronze)* | Admiral* (use code MSETRAVEL20) | Leisure Guard Flexi (Bronze). Full info: Cheap travel insurance.
For over-65s: Costs can rocket with age, so we've put a lot of work into our Over-65s' travel insurance guide. Prices are from £32/yr at age 66, from £93/yr at age 76. Check Admiral* (use code MSETRAVEL20) | Vibe (Essential) | Avanti (Classic)*. There are couples' policies available too, though family policies are trickier unless you have a child at home who is under 18 (or in full-time education).

Single-trip policies: Cover a one-off holiday. Enter the dates you're travelling (even if months ahead) and you'll be covered for cancellation from the moment you pay.

For under-66s: For a week, from £7 for individuals in Europe, or from £56 for a family worldwide. Check Coverwise (Bronze)* | Leisure Guard Flexi (Bronze) | Admiral* (use code MSETRAVEL20).
For over-65s: Full info & options in Over-65s' travel insurance, but for someone age 66 it can be from £19/wk for an individual in Europe, from £57 worldwide, though prices rise rapidly with age. Check Leisure Guard Flexi (Bronze) | Coverwise (Bronze)* | A to Z Insurance (Essentials).

Got pre-existing conditions? There are too many variables to summarise here, so jump straight to our Top pre-existing conditions travel insurance guide. It worked for Cate, who emailed: "I managed to find a single-trip travel insurance quote for the USA for 11 nights for £85. Being over 70 and on cholesterol medication, most of the prices I saw were exorbitant and downright ridiculous. But thanks to your tips, I finally got a reasonable price I can afford."

Travel insurance need-to-knows...

Hitting the pistes? Get a winter sports add-on. Most firms let you add winter sports cover for annual or single-trip, usually for lost or damaged gear, piste closures, and medical costs from accidents. This crucially also includes public liability cover, in case you injure someone on the slopes. But if you go off-piste (or do any extreme sports), these WON'T cover you. More in winter sports info.
Holidaying in Europe? Ensure you've an in-date European Health Insurance Card (EHIC) or Global Health Insurance Card (GHIC) - if not, apply for a free GHIC.
Many could save with a packaged bank account. These give good quality travel insurance, mobile phone cover and breakdown cover for c£15/mth - if you need all that cover, you can save £100s. See top packaged bank accounts.
What if my travel insurer unfairly turns my claim down? Knowing how firms will respond to claims is tough. You can always formally complain to the insurer and, if rejected, go to the free Financial Ombudsman to adjudicate.

Will your current energy fix be reduced by 'The Budget's £150/yr off bills' from April? Martin pushed the govt to ensure providers pass on the full cut, and more firms have now committed to this, though what counts as 'the cut in full' is becoming more complex. All the latest in our updated firm-by-firm breakdown. Fix now and save 15%: The cheapest fixes are nearly 15% cheaper than the current Price Cap, and if you fix now, most will get even cheaper in April as they'll drop the rate of the fix in line with the Budget intervention. Do a full Cheap Energy Club fix comparison.

Ends Mon. Get 'up to 76% off' train tickets. The Great British Rail Sale returns for a fourth year, offering discounted advance and off-peak fares for most operators for travel between 13 Jan and 25 Mar. Just the (cheap) ticket.

Nationwide customer? Max your chances of getting a FREE Fairer Share £100/yr. For the past three years, it has paid some customers a loyalty bonus. Here's how to boost your Fairer Share chances for 2026.

Flight sales: Easyjet, Ryanair, BA & more. Many big travel operators have Jan sales, eg, Birmingham to Mallorca £38 return & London to New York £374 return. See flight/holiday sales.

Pizza Express 2for1 for £1 | 50% off Harvester | And more restaurant codes. Eateries are quieter this month, so chains including Zizzi, BrewDog, The Ivy and more have restaurant discounts to entice you.

Tonight (Tue) at 9pm ITV1 or after on ITVX The Martin Lewis Money Show LIVE: Reboot your finances in an hour! Martin: "We're on later tonight at 9pm. I've an hour to run you through a crash course in the big & easy savings you can make to kick-start your financial year. Plus lots of time for Ask Me Anything questions, suggest them via the show team: martinlewis@itv.com."

£70 Eurostar returns (plus extra 5% off). For travel 19 Jan to 25 Mar. Eurostar sale

Martin: 'The Steps Battle that drove me to average 26,000 steps a day over 2025'. Burning '4,015' daily calories. It's just a little bonkers. Here's the start: "I'd already done 39,000 steps that October Sunday. So at 11pm, when I checked my app, having been leading all week, I was certain I'd win, but I was shocked to discover... she was 500 ahead. I had to try and beat her..." Read Martin's How I did 26,000 steps a day in 2025 blog.

60% off first two Abel & Cole organic fruit & veg boxes, from £5.80 with free delivery. MSE Blagged. Then 50% off your 3rd & 4th - though you can cancel any time (available in most of England & parts of Wales). Veg out

Sky to hike mobile prices, so you've 30 days to LEAVE penalty-free. Can you switch & save? If you get its 'we're hiking prices by £1.50/mth' notification, you've got 30 days from receiving that message (not 14 Feb when the hike comes in) in which you can leave your contract penalty-free. So check now if it's worth... a) Leaving Sky and finding the cheapest Sim from just £3/mth. b) Leaving Sky but finding the cheapest Sim on the same O2 signal. c) Staying at Sky but using this as a way to haggle down the price. Full help in Beat Sky Mobile price hikes.

Please add us to Google's 'Preferred Sources' so you still see MSE high in search results. Google now lets you choose preferred sites for news results, please click this special Source Preferences link, then tick the MoneySavingExpert box, and you're done.

BLAGGED FOR MSE

- 60% off first two Abel & Cole fruit & veg boxes Ends 30 Jan
- £30 cashback boost when spending £5+ online 10,000 available

DID YOU MISS?

- 50%-70% off in January sales, including Asos, Ikea and M&S
- New smartphone from Santa? 16 quick tips to keep it secure
- Save £667.95 in 2026 with the 1p Savings Challenge
- Switch bank & get a FREE £200 plus perks
- Sharpen your financial knowledge with MSE's free course

Three COUNCIL TAX cost-cutters! Can you save £1,000s?
Council Tax likely to again rise 5% for many in 2026... check now to see if you're overpaying

There are changes afoot to Council Tax funding. A new formula due to be confirmed early this year is likely to change the central government funding each council receives - skewed, the govt says, 'towards those who need it most', though of course that definition's a hot potato. The usual 5% cap on rises in England still applies though (it's not capped in Wal/Scot), with most councils likely to increase by near to that (with some speculation councils who lose out on funding may be able to increase by more). Wherever you are, though, it's as important as ever to check if you're paying the right amount.

1) Is your property in the wrong Council Tax band? The system is broken. What you pay depends on which valuation band (from A to H) you're in, based on stopgap '2nd gear valuations' (often estate agents just driving past homes to classify them) done back in Eng & Scot back in 1991. In 2007, Martin developed our Council Tax check & challenge system - we've had 10,000s successes since, and more since he upgraded the system in 2024, meaning people not only get their band lowered, they get a backdated refund. While many successes are easy, Dave's recent one was hard-fought...

"Hi Martin, I've received a £4,000 refund thanks to your campaign. I bought a property in Devon in 1990 just 6mths prior to the 'valuation' date and have lived in it since. I've tried numerous times over the past 30+yrs to adjust my band from C to B given the compelling evidence of knowing the actual value, but to no avail. It was when you mentioned that I could obtain my PAD (Property Attribute Details), which I did, and it turned out to be grossly inaccurate, and after following your advice tried again that I successfully managed to have the band lowered. Many thanks." To check, in brief...

- Step 1. Compare your band with nearby similar homes. You can do it free online - see the neighbours check.
- Step 2. Estimate your home's value in 1991. See the valuation check, including our free tool to help.
- Step 3. Only challenge if BOTH checks show your band may be too high. Just one check leaves a risk that it could be your neighbours are in too low a band - and theirs is upped.

Follow our detailed how to challenge your band help. For those in Eng & Wales, this crucially includes getting your free Valuation Office Agency (VOA) Property Attribute Details (PAD) to check if the right info is held on your home.

Martin: 'In a £1.75m+ property?' From April 2028, the new £2,500+/yr 'high value Council Tax surcharge' (aka the mansion tax) will be introduced for properties the VOA assesses to have a market value of £2m+. Full valuation methods aren't known yet, but my guess is it'll be a mix of sales data, market trends and info the VOA holds on your property - likely to be your current band & PAD. So, if your home is worth £1.75m+, it may be worth a look at your PAD form to see if it's correct.

2) Do you qualify for £100s of discounts? Many people miss out as they're not aware what's available. David was in this boat, emailing us in Nov: "Prompted by MSE, my disabled wife and I applied for a lower Council Tax banding, and we've just learned it has been granted, backdated till when my wife broke her first hip. We've received a refund of £1,177." Our full Council Tax discounts guide takes you through it, but the main ones are:

- Live alone, or only with under-18s or full-time students? You may be due a 25% discount.
- Student-only household? If you're all full-time, there's no Council Tax to pay.
- Have a live-in carer? See if you could cut your bill by 50%.
- On Universal Credit, Pension Credit or got a lower income? Some can get reductions of up to 100%.
- Adapted property for a disability? You could drop a Council Tax band.
- Have or live with someone with a Severe Mental Impairment? Eg, Alzheimer's, severe Parkinson's or a stroke. If so, and you're eligible for benefits such as Personal Independence Payment or Attendance Allowance, you may be due a discount. Susan emailed in August: "Thank you for informing me about the SMI rule. I have qualified for a 25% reduction and had my claim backdated for 13 years, receiving just over £3,500. This has made such a difference to me and my husband." See full Severe Mental Impairment Council Tax help.

3) Moved home since 1993? You might be owed £100+. Council Tax is paid in advance, so often you'll be in credit when you move, and you're entitled to that money back. Our investigation in 2024 found local authorities across Britain were sitting on £141m in overpaid Council Tax, from 808,000 households. You're most likely owed if you've moved out of a council area since 1993 and weren't paying by Direct Debit. If so, check our Council Tax overpayments guide.

PS: In 2026, we hope to get the govt outcome of Martin's MMHPI charity's work on ending the Council Tax debt collection nightmare, as well as our campaign on improving SMI communication and making it easier to challenge your band.

Are you one of nearly 6m people who's not filed a 2024/25 tax return? Do it ASAP or risk a £100+ fine and 7.75% interest. Most people don't need to file a return, but many of the millions that do haven't yet. The deadline's 31 Jan. Full help in Self-assessment for beginners, but in brief you need to do it if...
- HMRC has told you to (more likely for higher or additional-rate taxpayers).
- You're self-employed and earned over £1,000 in the tax year.
- You get Child Benefit, earned over £60,000 in the tax year and haven't opted to change your tax code.
- You earned £10,000+ from savings interest or investment dividends in the tax year.

Gatwick follows Heathrow in upping airport drop-off charges. Gatwick's £7-for-10mins charge rises to £10 today (Tue), while Heathrow's has risen from £6 to £7 and Bristol's from £7 to £8.50 in the last week. London City has also introduced a new £13-for-10mins charge. See airport-by-airport help to beat drop-off fees.

Check if you're due £25 cold weather payment. More than 650,000 households in 450+ postcodes (not Scotland) have had the cold weather payment triggered, as temps have plummeted this week. Cold weather payments check

Wetherspoon 99p beer (incl alcohol-free), £3 wine, etc. Till 15 Jan. 'Spoons sale. Pls be Drinkaware.

New Martin Pod. 2025's best of Martin's Money Mastermind Special. Listen to Adrian Chiles squirm at Martin's questions on returning faulty tech, Gift Aid, credit scores and Direct Debits. All in Martin's podcast this week. Listen via BBC Sounds | Apple | Spotify etc.

Still got an old Economy 7 or multi-rate electricity meter? It's due to stop working soon. There are 165,000 Radio Teleswitch Service (RTS) meters left to be replaced. If you've got one, get it replaced ASAP, as the govt plans to switch them off this year. See how to check.

Nab £30 cashback boost when you spend £5+ online. MSE Blagged. New to Topcashback? Get a no-brainer £30 bonus by signing up via our link and spending a fiver or more via it. Topcashback boost

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MONEY MORAL DILEMMA

Should I pay towards my son's neighbours cutting down their trees? My son's neighbours have several large trees in their front garden and the roots are slowly pushing up my son's driveway. He's told them, but they don't seem to have any intention of doing anything. I've suggested that I offer to pay part of the cost of cutting them down to encourage them to take action. My son says that the cost is theirs to bear and they'll surely realise they have to do something, yet the damage to his driveway will only get worse if he waits. Who's right? Enter the Money Moral Maze: Should I offer to pay towards my son's neighbours cutting down their trees? | Suggest a Money Moral Dilemma (MMD) | View past MMDs

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MARTIN'S APPEARANCES (WED 7 JAN ONWARDS)

Thu 8 Jan - This Morning, phone-in, ITV1,10am
Thu 8 Jan - Ask Martin Lewis, BBC Radio 5 Live, midday
Mon 12 Jan - Good Morning Britain, ITV1, after 8am
Tues 13 Jan - This Morning, phone-in, ITV1,10.20am

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