money-saving tips – The NEN – North Edinburgh News

How young drivers can save in 2024

2023 was particularly harsh on young drivers, with premiums soaring by over 50% as the cost-of-living pressures took effect.

The sky-high cost of learning to drive combined with these higher insurance premiums and new emissions costs for older cars, are all making it a struggle for young drivers to get on the roads.

Data shows the average car insurance premium for young 18-year-old drivers increased to £1207 in 2023.

The experts at Quotezone.co.uk have revealed ten savings hacks to help young drivers give their finances a fresh start for the new year.

One of the most important things for young drivers is to be safe and avoid penalty points, a fifth of convicted drivers in the UK have been driving for a year or less – according to a sample of over 15,000 convicted drivers, analysed by Quotezone.co.uk.

Penalty points on a licence may not only result in a steep fine but will also bump up the insurance costs. Drivers can expect premiums to rise by 5% for three points and 25% for six points if they’re starting from a clean licence.

Young drivers or those with penalty points may be able to get cheaper insurance by opting for a telematics policy, or black box insurance.

Black box insurance starts collecting data on their driving immediately, if they’re a safe driver, this can help the insurer see them as less of a risk and may result in a more competitive price. Although, like all premiums this year, prices are on the rise, in 2023 telematics was still able to save young drivers an average of £75 annually.

Age group 18-24	NO telematics	YES telematics
2021	£1199	£938
2022	£1047	£1050
2023	£1230	£1155

Quotezone.co.uk CEO Greg Wilson said: “Young drivers had a tough 2023 with delays to driving tests and backlogs for lessons plus the rising cost of everything associated with motoring – insurance, repairs, fuel – we’re hoping 2024 is a much better and cheaper year for those new to the road.

“There are lots of things young drivers can do to help bring the cost of driving down, from knowing how to avoid even the most unusual fines and penalty points to installing a black box and keeping modifications and mileage to a minimum.

“We’re researched the top 10 ways we think will help young drivers save in 2024 along with the essentials such as shopping around and comparing product details, annual payments if possible and reviewing when exactly is the best time to buy, normally three weeks before the policy is due for renewal is the most competitive.

“Passing your test and taking to the road for the first time is a rite of passage and it would be worrying if new drivers started to struggle to make driving a reality due to cost, hopefully our money saving tips go some way to making a more affordable 2024.”

Quotezone.co.uk’s Top ten hacks that could help young drivers save:

1. Do check your mileage

When taking out insurance, you will be asked to estimate your annual mileage. The costs will rise in incremental bands so the more miles you drive, the more you pay so try to be accurate and realistic with your prediction.

2. Do park in a safe place

Car owners that make use of their garages, driveways or carports for overnight parking could make big savings on their car insurance – parking on driveways rather than on the road can save you over £140 on average every year and carports could save you even more, with £230 savings on average.

3. Do consider switching to a smaller engine

Be sure to check your vehicle’s engine size and horsepower, both can impact the cost of your premium. Also, some small engines are turbocharged and that can give them more power than might be expected, which will likely cause the premium to increase.

4. Do keep modifications to a minimum

It comes as no surprise that adding a custom exhaust or putting in lowered suspension might cause insurance premiums to rise, but even seemingly innocuous changes such as adding branding to a vehicle can affect the cost.

5. Do consider a black box

A telematics policy, or black box insurance – starts collecting driving data immediately, this can help the insurer with their risk analysis, safer driving increases the chances of a competitive price for young drivers.

6. Don’t over pack the vehicle

Packing items above the seat line will impair vision, while heavy loads are likely to affect a car’s handling and stopping distances. Overloading a car past its capacity is a punishable offence, with a fine of up to £300 and 3 points. Driving without full visibility out all windows is also punishable and could result in a £50 fixed penalty.

7. Don’t forget your sunglasses

Sunglasses are labelled with a ranking from zero to four in order to determine their strength and the time of day they can be worn. The average pair of sunglasses is categorised as a number two – these are recommended for daytime driving. Driving with inappropriate eyewear could be detrimental to other road users, leaving drivers unable to detect dangers. Motorists could be hit with a £100 on-the-spot fine and up to three penalty points for driving without due care or attention.

8. Don’t use the wrong fuel

Misfuelling is one of the most expensive mistakes motorists make. Pumping diesel fuel into a petrol car can lead to engine failure, leaving motorists to pick up the maintenance costs. Rule 97 of the Highway Code states before drivers set off, they should ensure they have ‘sufficient fuel or charge for your journey, especially if it includes motorway driving’. Careless or dangerous driving caused by low fuel will see motorists face fines of up to £100 and three points on their license.

9. Don’t leave the car switched on while waiting for friends

‘Idling’ or leaving the engine running unnecessarily while stationary on a public road goes against Section 42 of the Road Traffic Act. Drivers risk a £20 penalty notice that will double if not paid in full within 28 days. According to research conducted by Quotezone.co.uk, almost 11% of drivers fail to turn off their engines while waiting.**

10. Don’t splash pedestrians

Splashing pedestrians is actually illegal under section three of the Road Traffic Act, 1988 – and is considered to be driving ‘without reasonable consideration for other persons using the road’ – resulting in a fine of £100 and three penalty points on the licence, in some cases, fines can reach as much as £5,000 for driving without reasonable consideration for others on the road.

Quotezone.co.uk can help if you’re looking for learner drivers or young drivers insurance. If you live in Northern Ireland, CompareNI.com can help.

Which? How to save as a student

As the cost of living crisis continues to bite, many university students will be looking for ways to cut back.

A recent study by the National Union of Students (NUS) found that a third of students are living on less than £50 a month after paying rent and bills. With the cost of living soaring, 96 per cent of students are cutting back on spending as a result.

Which? has nine tips for students wanting to save money while they study:

1. Choose the best student bank account

Choosing the best student bank account should be a priority. When looking for an account to suit your needs, Which? recommends finding one with a generous 0% overdraft that lasts for the length of your course.

Student bank account providers offer different perks and offers – so it’s worth making sure you get the deal best suited to you. For example, Santander offers a free four-year railcard which is worth around £90 but it doesn’t offer the largest interest-free overdraft and you’ll need to pay in £500 per term.

While NatWest offers one of the largest overdrafts for first-year students, the freebies, such as its one-year Tastecard membership, aren’t as valuable. Other accounts offer cash incentives of up to £100.

2. Consider what kind of laptop or computer you need

Most students find a laptop, rather than a desktop computer, better for university as they’re easy to carry around and don’t take up too much space. Don’t overspend on a laptop that’s too powerful for your needs. Between £250 and £400 should be enough if you’re only going to be researching and creating Word documents.

It’s worth searching for student discounts and deals on laptops. For instance, Lenovo offers up to 30 per cent off for students, but you might need to show a valid student ID. You can often find the best deals direct from manufacturers’ websites. For example, HP offers £150 cashback if you trade in an old laptop for a new one. Buying second hand or refurbished laptops is another way to save.

If you plan to work from home most of the time and you’re on a tight budget, a desktop computer might be a cost-effective option, especially if you already have a computer monitor, keyboard and mouse. Desktops typically have a faster processor, more ports and more RAM and storage, compared to the same-priced laptop.

Most universities have computers around campus for students to use, and some have laptops that can be used in their libraries.

3. Find out what additional support is available

Most universities offer additional financial support, particularly – although not exclusively – to students from lower-income families. The most common examples are bursaries and scholarships to help with some or all of a student’s tuition fees or living costs. Companies, charities and special-interest groups are all common sources of funding, too. Bursaries and scholarships may be awarded based on academic merit (i.e. achieving high grades at A-level), a talent or skill, and extracurricular achievements.

If you have a disability or dependants who rely on you for care or financial support (for example children, or parents you care for), you might be eligible for grants or allowances to help you. Students will be asked about this when applying for student finance, but it’s worth researching what your university, charities and other groups offer, too.

4. Share subscriptions with your flatmates

Lots of student accommodation doesn’t come with a television or TV licence, and many students rely on streaming services as a result. You can cut this cost by sharing streaming subscriptions within a household. Most services have plans that could help users save money, without losing their personalised features. For example, Spotify offers a Premium Duo plan for £13.99 a month for two people in the same household, saving £71.88 a year compared to the price of two individual subscriptions.

For larger households, the Spotify Premium Family plan for £16.99 a month allows up to six users to get premium benefits, saving a whopping £515.40 a year over six individual subscriptions. Amazon Prime also allows users to share benefits with another person in their household, halving the cost of having two separate accounts.

5. Buy books second hand

Students will no doubt be presented with a long list of books that they’ll need to buy as part of their course. Tutors often insist you buy them all, but it might be worth checking how many are mandatory and how many are ‘nice-to-haves’. Find out if any necessary books are available in your library to borrow, or if the relevant bits are available online to download for free. Some departments have their own second-hand book schemes, and many university bookshops sell second-hand copies as well. It could also be worth searching for cheaper second-hand copies on online marketplaces.

6. Find student discount codes

It’s always worth checking if you can pay less with a student discount, whether you’re going out for a pizza with friends or treating yourself to a new pair of jeans. Discounts can range from around 5 per cent to 40 per cent, so there are often big savings to be made. While students can typically use their physical student card in shops and restaurants, there are also online cards and schemes you can sign up for such as Totum, Tastecard, Unidays, Student Beans and International Student Card. Each service offers its own exclusive online discounts, so you’ll get different deals with each.

7. Look for freebies

Several companies offer freebies for students, so it’s worth searching for the best ones. For example, Amazon Prime offers six months free when you sign up to an Amazon Prime Student Trial. Students can also sign up for Microsoft’s Office 365 Education for free with their university email address. McDonald’s also offers a free cheeseburger, mayo chicken, or McFlurry Original when you buy any extra value or wrap meal and show a valid student or Student Beans ID.

8. Save money on bills

While those living in student accommodation will likely have their utilities included, students living off campus usually need to pay for this themselves. Think about ways you could reduce energy use for cheaper bills, such as cooking with housemates, charging your laptop on campus and not leaving gadgets on standby. Students are also exempt from paying council tax.

9. Save on transport

There are several ways to save on transport as a student. For example, the 16-25 railcard gives a third off rail journeys for just £30 per year, or £20 a year if you purchase via the Trainline before 31 August 2022.

You can also buy a railcard with £10 of Tesco Clubcard vouchers. National Express offers a Young Persons Coachcard for £15 that grants a third off journeys as well. It’s worth checking if you can get local travel cards or bus passes – different cities around the UK will have different options.

It might also be cost-effective to take a bike with you to save on transport costs. Some universities have their own bike loan schemes, so it’s worth checking when you arrive.

Reena Sewraz, Which? Senior Shopping and Money Editor, said: “University is already expensive and the rising cost of rent, food, energy and train fares, as well as books and other student essentials, means that many will be feeling the squeeze and looking for ways to cut back.

“There are ways to stay on top of things. Try sticking to a budget to keep track of your spending. Find a student bank account that offers a decent 0 per cent overdraft and perks that meet your needs. You can also save in a wide range of shops and restaurants with student discounts and offers – so it’s always worth keeping an eye out for deals.”

Which? Money-Saving Monday: Save money on tax

As the impact of the cost of living crisis hits home for millions of people, Which? shares tips to help consumers shave money off their tax bills.

There are lots of ways to reduce your tax bill legally, whether you’re an employee or self-employed, a landlord, investor or pensioner. Simple checks can boost your take-home earnings with minimal effort. There are also tax reliefs and government schemes that can help.

Check your tax code
Consumers who pay tax via Pay As You Earn (PAYE) should check if they’re on the correct tax code, to be sure they’re not paying more tax than necessary. Those on the incorrect code might be entitled to pay less tax in the coming months, or receive a rebate from HMRC for previous overpayments. Someone might find themselves on the wrong tax code, or an emergency tax code if they’ve started a new job and their new employer doesn’t have a P45, if they’ve recently had a change in salary, or if they’ve started or stopped taxable state benefits. For example, basic-rate taxpayers given an emergency tax code that excludes their personal allowance could pay an extra £2,514 in the 2022-23 tax year.

Consumers should check their tax code each year, or after changing jobs, to make sure it’s correct for their situation. Find out the most common ones in Which?’s guide to understanding your tax code.

Check if you qualify for any benefits
Workers on a low income with less than £16,000 collectively in any savings and investments may be able to qualify for Universal Credit, which is due to replace other legacy benefits like tax credits by 2024. Payments will vary depending on people’s circumstances. Those with children, for instance, could receive up to 85 per cent of their childcare costs, up to £646 a month for one child, or £1,108 for two children.

Every year more than £15bn goes unclaimed from the Treasury from households eligible for benefits, meaning more than seven million UK households could be missing out on benefits and other help like council tax discounts. Which? suggests checking what might be available to claim by entering details about you and anyone else in your household into the entitled to calculator.

Pay into a pension scheme
Employees can contribute to their employer’s pension scheme from their gross pay, before any tax is charged. The government then tops up the pension contribution with tax relief, providing a free bonus for saving for retirement. The effect of tax relief is that a contribution of £100 that would have been taxed at 20 per cent, and therefore worth £80 net, is paid into your pension fund without any deduction – so it’s worth the full £100.

Be sure to meet the tax return deadline to avoid a £100 fine
Around 12 million people need to submit a self-assessment tax return each year. Missing the claim deadline is a costly and easily avoided mistake. Those making an online submission have until 31 January 2023 to send in their 2021-2022 return, but for paper submissions the deadline is earlier, 31 October 2022. Missing the deadline incurs an automatic penalty of £100, even for those who don’t owe any tax. Use the Which? tax calculator to tot up your return and submit it directly to HMRC.

Reclaim overpaid taxes
Non-taxpayers and those whose income has unexpectedly fallen during the year might have been taxed more than they should have done, as HMRC assumes your personal allowance is equally used each month. To reclaim, fill out form R40 from HMRC, or call them.

Claim tax-free childcare
Under the tax-free childcare scheme, parents can claim back 25 per cent of their childcare costs up to £500 every three months. There are certain eligibility criteria, including having a child under 11 and earning less than £100,000. To get started, parents need to set up an online account, which can be used to manage payments to their childcare provider. For every £8 you deposit, the government will pay in £2, up to the value of £500 every three months, or £1,000 if a child is disabled.

Maximise your personal savings allowance
In 2022-23, savers can earn £1,000 of interest on savings tax-free if they’re a basic-rate taxpayer. Higher-rate taxpayers have a tax-free allowance of £500. This means they only pay tax on savings income that exceeds this threshold. This will no longer be deducted automatically by the savings provider. If tax is due, you’ll need to pay it via self-assessment or have it deducted via PAYE. Keep in mind that you won’t have a savings allowance as an additional rate (45%) taxpayer.

Use the starter rate for savings
If your income from a job or pension is below £12,570 in 2022-23, but you earn income through interest on savings, you may also qualify for the starter savings allowance. Any interest you earn up to £5,000 is tax-free. This will be in addition to your personal savings allowance, meaning you could earn as much as £18,570 before paying tax.

Benefit from lesser-known allowances
Consumers can keep hold of a bigger chunk of their earnings by claiming all the tax allowances they might be entitled to. Marriage tax allowance and the Rent-a-Room scheme can save significant sums, yet relatively few people are aware of them. For example, those renting out a room in their home can take advantage of the Rent-a-Room scheme, which means they can earn up to £7,500 tax-free. Marriage allowance benefits couples where one partner earns less than the personal allowance, and the other is a basic-rate taxpayer. Married couples or those in a civil partnership can transfer a 10 per cent personal allowance from the lower-earning partner to the higher earner. In 2022-23, £1,260 can be transferred, potentially saving you up to £250.

Get a reduction on your council tax if you’re a low earner
Those on low incomes may be eligible for a council tax reduction of up to 100%. Each local authority has different criteria for who is eligible to claim council tax reduction and the size of the reduction depends on income, savings and whether the claimant lives alone

Those who don’t qualify for a discount themselves, but share a property with a second adult who does (and is not their spouse or civil partner), might be able to claim a second adult rebate.

Reena Sewraz, Which? Money Expert said: “Many people are feeling financial pressure at the moment as soaring energy and food prices, as well as tax hikes, have put a huge strain on household budgets. However, there are steps you can take to save money on tax.

“It is always worth doing a quick check to make sure you’re on the right tax code – if this is incorrect you could be eligible for reduced tax or a refund from HMRC. You can also easily check if you’re eligible to claim additional allowances and benefits from the government, such as marriage tax allowance, universal credit, or a discount on your council tax.