Martin Lewis's 2026 Money Makeover: Save Thousands on Household Bills
As the high cost of living continues to squeeze millions across the United Kingdom, households are urgently seeking ways to reduce their expenses. Although inflation slowed in January 2026, indicating prices are rising at a more moderate pace, essential bills remain a significant financial burden after years of consecutive increases. Energy, water, broadband, and council tax costs have all surged since the Covid-19 pandemic and persist at elevated levels in 2026. Concurrently, recent analysis by Citizens Advice reveals that the number of households grappling with debt has reached unprecedented heights.
While these expenses are unavoidable, money saving expert Martin Lewis advocates for a proactive approach to cutting costs. He urges bill payers to undertake a comprehensive "money makeover" to identify areas of overpayment and secure better deals. Writing on his Money Saving Expert website, Mr Lewis emphasised: "Taking a day to cut your bills saves many people £1,000s over the year. And unless you earn £100,000s, doing a money makeover can be the next best way of putting some extra aside – something that's really important during this cost of living crisis." He advises individuals to scrutinise their bills immediately to potentially save hundreds on broadband, mobile plans, food, and other essentials by methodically reviewing their finances.
Six Top Tips for Slashing Bills in 2026
Mobile Contract Review
Phone contract prices in the UK exhibit substantial variation, with some consumers paying up to £200 more than others for comparable deals. An estimated 14 million people are currently out of contract, allowing them to switch providers without penalty and often revealing they are overpaying. To determine contract status, individuals can text "INFO" for free to 85075; mobile providers are obligated to reply with details, including any early termination charges. A £0 charge typically indicates the contract has concluded. For those content with their current device, SIM-only deals are available for as little as £4 per month, offering significant savings. One satisfied saver reported to Money Saving Expert: "I took advantage of your deal with Lebara after disappointing service from my last provider. Saved £277 over the next year, get more data, better roaming, a month-by-month contract and keep my old phone number. Dead chuffed. Thanks."
Subscription Health Check
Subscriptions are frequently easy to initiate but challenging to monitor, leading to unintended payments. Data from Compare the Market indicates that over 27% of people have experienced unauthorised payments for services they believed were cancelled, spanning streaming platforms to fitness applications. To identify unwanted subscriptions, individuals should examine direct debits and standing orders in their bank accounts, addressing any unexpected regular outgoings. While cancellations can be processed through banks, it is prudent to contact the company first to avoid breaching any ongoing contracts. Additionally, less common "Continuous Payment Authority" arrangements may not appear in standard bank lists; reviewing statements for unusual recurring payments is essential. In some cases, companies may refund customers for mistaken payments, as one individual shared: "Found out that I was paying £10 for a second Netflix account. Contacted Netflix and they were very helpful, refunding me £70."
Quick Energy Bill Fix
Energy costs have escalated rapidly over the past five years, driven by the Covid-19 pandemic, the conflict in Ukraine, and the broader cost of living crisis. Ofgem's energy price cap for January to April 2026 stands at £1,758, lower than pandemic peaks but still significantly above 2021 rates. This cap limits the per-unit charges for standard variable tariffs, expressed as an annual average bill. To mitigate these expenses, experts including Ofgem recommend considering fixed-tariff energy deals, which can currently offer savings of up to 14% compared to the price cap rate.
Broadband Deals Assessment
Similar to mobile contracts, approximately seven million people are out of contract on their broadband services, potentially overpaying. Shopping online for competitive deals can yield substantial savings; Mr Lewis estimates that millions could "double the speed and halve the price" of their contracts, saving up to £500 annually. For low-income households or those receiving means-tested benefits, social broadband tariffs are available from several providers, starting at around £16 per month.
Council Tax Reduction
Council tax has seen notable increases as local authorities strive to bolster finances, but many residents may be unaware that they can challenge their property's tax band. In 2024, over 43,000 people pursued this avenue, with nearly 1,000 successfully lowering their band by two or more levels. Analysis suggests around 400,000 households are in incorrect bands, potentially leading to overpayment. A successful challenge can result in reduced future bills and a backdated refund; one saver reported receiving £8,871 for 28 years of incorrect banding. However, it is crucial to note that bands can also be increased, as evidenced by cases where the Valuation Office Agency raised bands for entire streets following challenges.
By implementing these strategies, households can achieve meaningful financial relief in 2026, turning Martin Lewis's advice into actionable savings.
