Money saving expert Martin Lewis has issued a fresh call for households to undertake a comprehensive 'money makeover' in 2026, a strategy he claims could save families thousands of pounds each year on their essential bills. This advice comes as the ongoing cost of living crisis continues to squeeze budgets across the United Kingdom, prompting many to seek effective ways to reduce their monthly outgoings.
Key Areas for Potential Savings
Lewis highlights several critical areas where consumers can make immediate and substantial financial gains. By focusing on these specific aspects of household expenditure, individuals can unlock significant savings without compromising on service quality or necessity.
Mobile Phone Contracts
Many mobile phone users are currently out of contract but remain on more expensive plans, unaware of cheaper alternatives. Lewis recommends texting 'INFO' to 85075 to quickly check contract status. Switching to a SIM-only deal could result in considerable monthly savings, especially for those who own their handsets outright.
Reviewing Bank Statements
A thorough review of bank statements is essential to identify unwanted subscriptions, direct debits, and Continuous Payment Authorities. Lewis advises contacting companies directly before cancelling any services to ensure a smooth transition and avoid potential penalties.
Energy Tariffs
With energy prices remaining volatile, considering a fixed-tariff energy deal could lead to significant savings. Some fixed rates are currently up to 14 per cent lower than the standard energy price cap, offering households a more predictable and often cheaper alternative for their gas and electricity bills.
Broadband and Council Tax
Shopping around for new broadband deals can save hundreds of pounds annually, as many providers offer competitive rates to new customers. Additionally, challenging council tax banding is a lesser-known tactic that could result in lower bills and even backdated refunds for those who have been incorrectly categorised.
Implementing the Money Makeover
To effectively implement this money makeover, Lewis suggests setting aside dedicated time to assess each area of expenditure systematically. This proactive approach not only helps in identifying immediate savings but also fosters better financial habits for the long term.
By taking these steps, households can potentially save thousands of pounds each year, providing much-needed relief during the persistent cost of living challenges. Lewis emphasises that even small adjustments in these key areas can accumulate into substantial financial benefits over time.
