Business programme
Start-Up, Scale-Up by Lloyds Bank Academy
Tools and steps to help reduce your costs
Look at ways you can compare prices and lower your regular costs like bills.
Introduction to 'Tools and steps to help reduce your costs'
How can we spend less on everyday services? We’re always looking for ways to do this. Bargain-hunters seek out special offers. You might spot ways to save just by looking at how you pay your bills. Others may use comparison sites.
This lesson explores different ways to help you do this. You’ll learn how to use digital tools to cut costs and find deals. We’ve also got plenty of hints and tips on how to get the most out of these tools.
What you'll learn
- What to look out for in your spending.
- How you could save with your current providers.
- Different options and how to explore these.
How long it takes
12 minutes
Look at how you spend
Chapter 1
How long it takes
2 minutes
What do you pay for each month?
Before you think about paying less, you need to know what you’re paying now. So start by looking at your regular payments. Go through your bank statements over the past few months.
Look out for:
- Monthly Direct Debits and Standing Orders - Check that you know exactly what’s going out of your bank account every month.
- Other regular payments – Like a yearly insurance payment or a quarterly magazine subscription.
- Your essentials - This should be the things you always need to pay. Like rent/mortgage, food, utilities, loan/debt repayments, tax payments, etc.
- Other services – These might include mobile phone contracts, TV packages and other subscriptions.
- Services that overlap – Say you’re paying £15 a month for a movies package as part of your TV service. You also have a Netflix account, so do you need both?
- What you could drop – Be realistic and honest about which payments could potentially stop. Is there anything you don’t need or use?
Idea
Some banking apps have Artificial Intelligence (AI) tools to help you find, track and manage your spending.
Look for tools like ‘Spending Insights’ or ‘Financial Assistant’.
How do you pay for everyday services?
Now you have an idea of what you’re paying for, it’s time to look at how you pay. We’ve talked about regular payments from your bank account. There are other ways we pay our regular costs, too.
You might use some of these already. Others could be worth looking at, to help you save money.
You might:
Pay by cash
School events, the local coffee shop or your daily paper – don’t forget to include these when you’re looking at what you pay for.
Use your skills or services to pay
Some people swap one thing or service for another. For example, fixing someone’s bike in exchange for home-cooked meals.
Make the most of vouchers or deals
Whether you collect supermarket loyalty points or use apps like VoucherCodes or Shopmium, these can all help you pay for day-to-day items.
It can be hard sometimes to manage all our bills. The MoneyHelper site has a useful video to help you work out your first steps to doing this.
Review your providers
Chapter 2
How long it takes
5 minutes
Look at what you pay
Think about how long you’ve been with your gas company, your broadband provider, your streaming sites. What do you pay them now, compared to when you started?
Costs go up over time. Let’s look at how you could keep these as low as possible, for as long as you can.
Check for introductory offers
Some contracts for utilities and household services offer lower prices for an initial period. During this time, they may limit what changes you can make and when.
For example:
Broadband
Some offer bundles that include pay-TV or streaming services for 18 months.
Utilities
Fixed price for 12 months or ‘off-peak’ reduced prices on certain days/times.
TV
Free trials, entertainment packages or discounts on monthly payments for the first year.
Mobile
A package including minutes, texts and data – perhaps the phone itself – for 18 months.
Be aware
After this initial period, the price is likely to increase. If you do nothing, this will usually happen automatically.
So, make a note of the end date and take action at least one week before this.
Reduce your costs with your current providers
You may be coming towards the end of a cheap deal, or just looking to see if there’s a better option than your current provider. Either way, here’s what you can do to see if you can lower your costs.
There are a few things you can do:
-
Usually, they’ll let you know if your current contract or special offer period is coming to an end. Look at the options they give you next. There may be a package or deal that works for you.
-
Do you feel all their options are too expensive? It’s always worth asking if they can improve on their offer.
The consumer group Which? asked broadband, pay-TV and mobile phone customers about this. They found most people who discussed options with their providers did benefit. This included incentives, discounts and better deals. It’s not just the money savings, either. Some received upgraded routers or free Wi-Fi extenders.
They found these people saved, on average:
£99
A year for TV and broadband packages.
£65
A year for broadband services.
£127
From the biggest provider.
-
For broadband, phones and streaming services, it’s good to do this some time before offer period or contract comes to an end.
See what others are charging. You may be able to use this to get a better deal with your provider.
Idea
Looking to reduce your food bill? Shopping around is one way to do this and digital tools can make it easier.
AI apps and websites like Trolley.co.uk and PriceRunner compare the prices of supermarkets and other shops.
-
You may be unhappy with the service, or know you can get a better deal elsewhere. If so, switching to another provider could be the best option.
We’ll look at this option in more detail in the next section.
Be aware
Do check your contract period and terms to find out if you need to pay a cancellation fee.
Social tariffs
Many broadband providers offer cheaper deals for customers on a low income. These are social tariffs, also known as ‘basic’ or ‘essential’ packages.
Millions of households could save around £200 a year by switching to a broadband social tariff.
These tariffs are often just as fast and high quality as other deals – just cheaper. That includes no or low start-up costs and no mid-contract price increases. Your provider won’t charge you to switch to their social tariff, or to leave it before your contract ends. So, who can get this package?
You may be able to get it if you claim:
- Universal Credit – Or someone in your household claims this.
- Pension Credit
- Income Support
- Jobseeker’s Allowance
- Employment and Support Allowance (ESA)
- Personal Independence Payment (PIP)
- Attendance Allowance
The exact requirements here will vary from provider to provider. Check this list to see who offers this tariff. Then follow the links to see who is eligible.
Idea
Most social tariffs are for broadband. There are some for water services, too.
If you’re on Universal Credit, it may be worth looking at these deals.
Make the most of what you get
We’ve looked at how you could reduce the cost of these services. Now it’s time to make sure you’re getting all the perks that come with them. These include free stuff, special offers and even money back.
Discounts, rewards and gifts
Does your broadband provider or energy company have a rewards scheme? They may have let you know about this when you signed up. Often, we forget about these.
Meanwhile, we’re earning more points or rewards with every regular payment we make. Supermarket loyalty schemes are a good example of this. So take time to see what you’ve earnt – and how to redeem those points.
Check out their websites and apps. Some perks are ‘online only’ or ‘app only’. Plus, redeeming points can be easier to do online.
Does your broadband provider or energy company have a rewards scheme? They may have let you know about this when you signed up.
Often, we forget about these. Meanwhile, we’re earning more points or rewards with every regular payment we make.
Supermarket loyalty schemes are a good example of this. So take time to see what you’ve earnt – and how to redeem those points.
Check out their websites and apps. Some perks are ‘online only’ or ‘app only’. Plus, redeeming points can be easier to do online.
Are you due a refund?
Our energy use goes up and down throughout the year. Smart meters help us see how much we use. They also help our suppliers work out how much our regular payments should be. They should adjust these so we’re not paying too much or too little. Sometimes though, our payments are higher or lower than our energy costs.
When we overpay, our energy bills can show as ‘in credit’. It’s a good idea to keep some credit in your account, to cover you during the winter months. If you end up with a lot of credit, you may decide to ask for a refund. Some suppliers refund this credit automatically every year. Most don’t, though.
So it’s worth seeing if you’re in credit, how much this is and if it’s worth asking for a refund. Ofgem’s guide can help you do this.
Our energy use goes up and down throughout the year. Smart meters help us see how much we use. They also help our suppliers work out how much our regular payments should be.
They should adjust these so we’re not paying too much or too little.
Sometimes though, our payments are higher or lower than our energy costs.
When we overpay, our energy bills can show as ‘in credit’. It’s a good idea to keep some credit in your account, to cover you during the winter months.
If you end up with a lot of credit, you may decide to ask for a refund. Some suppliers refund this credit automatically every year.
Most don’t, though. So it’s worth seeing if you’re in credit, how much this is and if it’s worth asking for a refund.
Ofgem’s guide can help you do this.
Looking to cut costs on your streaming services or gym membership?
Our Subscriptions lesson has tips to help you keep on top of these payments.
Check other options
Chapter 3
How long it takes
2 minutes
Using comparison sites
Comparison sites can be helpful tools for reducing costs. They help you compare products and services from many providers all in one place.
Our Comparison sites lesson can help you get started using them.
Be aware that some providers tempt you with offers or rewards like gift cards. Think about what you’ll get from the deal, both now and in the future.
Always make sure that the service you get is right for your needs, before you go ahead.
Comparison sites can be helpful tools for reducing costs. They help you compare products and services from many providers all in one place.
Our Comparison sites lesson can help you get started using them.
Be aware that some providers tempt you with offers or rewards like gift cards. Think about what you’ll get from the deal, both now and in the future.
Always make sure that the service you get is right for your needs, before you go ahead.
Switching to a new service
You may find a better deal using comparison sites or by going direct to another provider. Either way, the next step is to switch.
There are plenty of sites to help you:
Some comparison sites will help you switch
Sometimes your new provider will manage the switch. You may still need to contact your current provider yourself to cancel, though.
Phone and broadband services
Ofcom has a guide to help you switch mobile, broadband or landline providers.
Switching energy supplier?
The consumer group Which? has helpful information for you.
Idea
Do you have the Lloyds banking app? Our Bill Switcher feature can help you see where you may be able to save money by switching.
You’ll see this as a ‘Want to save money on your bills?’ message beside payments you’ve made for broadband, mobile phone and energy bills.
Questions about switching
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This will depend on the type and length of your contract. For example, most broadband providers ask for 30 days notice if you’re leaving.
Always check your current contract to see when switching fees might apply.
Idea
Most broadband providers increase their prices in April.
So switching in March before your current deal goes up may be a good option.
-
You may need to pay a fee to switch before your contract ends. So think about the cost of this. It may be cheaper to wait until the end of your current contract.
-
Some providers may want to complete a credit check. They have to tell you they are going to do this.
-
They may ask you to pay this in full when you leave. Some providers may try and stop you from leaving before you pay the balance. If you’re in this situation, contact them and ask if they can set up a payment plan.
-
When comparing/switching, it’s sometimes easy to underestimate your usage. Take time to get an accurate picture.
This will help you find out what your future payments are likely to be. They’re more likely to keep your account in credit, too.
More help and ideas
Chapter 4
How long it takes
3 minutes
Money-saving tips
We’ve talked about looking at your current services and where switching might help. Here’s a few more ideas that may help you save money on your everyday costs:
Childcare
Childcare costs can take up to 25% of a household’s income.
The rules are different for each part of the UK, so here are the links for:
Idea
If you work and you’re eligible for Universal Credit, you may be able to claim back up to 85% of the amount you spend on childcare.
This GOV.UK page tells you how.
Even if you don’t qualify for other state help, you may be able to save money with the Tax-Free Childcare scheme. It works by giving you 20p for every 80p you put into a Tax-Free Childcare account. You can use this to help pay for up to £10,000 of childcare for under 12s, per child each year.
This includes:
Day nurseries and childminders
After-school and breakfast clubs
Holiday playschemes
Be aware
If you get Universal Credit, you won’t be able to use Tax-Free Childcare, too. In fact, using this scheme is likely to stop your benefits.
Always check with your local benefits advisor if you’re not sure.
Save money on your weekly shop
You’ve seen our tips on supermarket loyalty schemes and price comparison sites.
Here are a few more ideas and tools that may help reduce your grocery bills:
Shop online
This may help cut down those impulse buys, and save on driving costs. Look out for free or low-cost delivery slots to save more.
Make use of coupons
Sites like MoneySavingExpert regularly update their list of coupons and deals for cut-price or free groceries.
Explore cashback sites
Sites like Quidco and Topcashback give you money back when you access online shops via their website or app.
This article explains how they work.
Get free or low-cost food and other items
AI apps like Olio, Too Good To Go and Nosh aim to help reduce food waste by sharing surplus food or offering discounted items.
Support for young families
Low income families may be eligible for the Healthy Start scheme. This gives you money for food, milk and vitamins for your children.
In Scotland, the scheme is Best Start Foods.
AI tools to help save you money
We’ve talked about some of these during this lesson. There are plenty more out there.
These tools can help you:
Find the best discounts
AI chatbots like Microsoft Copilot, ChatGPT and Google’s Gemini can help you compare prices and seek out special offers.
Negotiate a better deal
Sites like Nous and RocketMoney can help you save on your utility and other bills by checking with other providers and managing the switch or renewal process.
Be aware
Some of these tools are free, or have free options. Others charge.
Always check that the tool is right for you, before signing up or paying for these services.
Where else can I find help?
Sometimes, it’s hard to keep on top of bills. You may find you need more support or advice.
The Lightning Reach tool
Struggling financially and need help with money? We’ve joined with Lightning Reach to help you find the financial support you need.
You can use this tool for free, to apply for a wide range of personalised support. This includes help with your day-to-day bills.
Other useful sites
- Ofcom – For advice if you can’t pay your phone or broadband bill.
- Which? – This page lists grants and discounts on fuel bills.
- MoneyHelper – They give support and advice on a range of money issues.
- Citizens Advice – For help with the cost of living, bills, benefits and more.
Want to learn more?
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Budget
Make the most of being online
Using the internet and online services
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Lloyds Bank Academy is committed to providing information in a way that is accessible and useful for our users. This information, however, is not in any way intended to amount to authority or advice on which reliance should be placed. You should seek professional advice as appropriate and required. Any sites, products or services named in this module are just examples of what's available. Lloyds Bank does not endorse the services they provide. The information in this module was last updated on 6th May 2026.