05 February 2018, 11:45

How to give yourself an inflation busting pay-rise in five easy steps

  

  • 52% of UK adults haven’t received a significant pay-rise for more than three years;
  • GoCompare shows how managing your finances can deliver an inflation busting pay-rise of up to £1,263*.

With more than half (52%) of UK adults now saying they haven’t had a significant pay-rise in over three years, GoCompare has devised a simple way to award yourself an effective pay-rise, worth up to £1,263 in 2018. 

Since the banking crisis a decade ago, British households have been hit with a double-whammy of sluggish wage growth and rising prices, leaving many worried about the increasing cost of living.  According to new research**, only 23% of UK adults saw their income increase at all last year, while inflation hit 3%.  As a result, 40% of people say they are bracing themselves for a tough financial year. 

Comparison website GoCompare has found a way to boost disposable income by over £1,200 this year – far more than an annual inflation rise for most households - by simply looking at five major aspects of every household budget and reducing the amount you pay.

Step

Financial task

Average saving per year

1.

A current account detox

Get the bank statements out – look for direct debits for items you no-longer need, or memberships and donations you’ve forgotten about.  On average, you can save £28.33 per month this way.

£340

2.

Switch Gas and electricity bills

Pay less for the same gas and electricity by switching providers. 

£139

3.

Shop-around for car insurance

In 2017 premiums hit record levels, the best deals are typically offered to new customers, so switch to get the same cover, at a better price.

£279

4.

Switch your home insurance

Premiums rose in the last year, so shop-around for a better deal. 

 

£71

5.

Supermarket sweep

Shopping at a cheaper supermarket can save a packet.  On average, those who have switched recently saved over £36 a month.

£434

 

Grand total

£1,263

According to the Office for National Statistics’, the average UK household disposable income is currently £27,200.  A boost of £1,263 would equate to a 4.6% increase for the average household - well in excess of a 3% inflation increase of £816.*** 

Another potential way to boost your income in 2018 is to make sure you are receiving all the financial support from the Government you are entitled to, such as housing, tax credits and council tax reductions and, to make sure you’re on the right tax code. 

A quarter of people don’t know or haven’t checked their entitlement to State support.  The research also revealed that over half (52%) haven’t recently checked whether they are on the correct tax code.    

Commenting on the research, Georgie Frost, consumer advocate at GoCompare, said: “With inflation rising and pay static for many people, the squeeze on household finances is set to get worse this year.  It’s clear from the research that many people are feeling negative about the state of their finances in 2018. 

“While January is traditionally the month we resolve to shed excess pounds - a spot of prudent housekeeping could help make you financially fit – without the pain of going without.  We’ve shown that it’s possible to make substantial savings on your household expenditure while still enjoying the same products and services.   A few minutes spent shopping around, you could slash £100s off your insurance and energy bills.  Similarly, doing your weekly shop at a cheaper supermarket could dramatically reduce your grocery bills over the course of a year – again, paying less for the same things.

“Another profitable exercise is to Spring clean your current account to make sure that you’re only paying for the things you want or need.  Automated payments such as direct debits help make managing our finances easier by ensuring bills are paid on time but, once set up they are all too easy to overlook.  Regularly reviewing your statements will also help you spot any errors, overpayments or fraudulent activity on your account.”

For more information on switching financial products visit: http://www.gocompare.com/

For more information about state benefits and entitlement calculators visit: https://www.gov.uk/benefits-calculators and to check that you are on the correct tax code: https://www.gov.uk/check-income-tax-current-year

 -ends-

For further information please contact:


Anders Nilsson or Martyn John at GoCompare on 01633 654 054 / 01633 654 725

Gordon, Jason or Liz at MAW Communications on 01603 505 845

Follow GoCompare on Twitter; @GoCompare

Notes to editors:

*£1,263 calculation based on the following:

Bank account Spring clean: UK adults spend on average £340 a year on old direct debits, standing orders, subscriptions, donations and unused memberships. (Source: on 10 October 2017, Bilendi conducted an online survey among 2,000 randomly selected British adults who are Maximiles UK panelists.)

Gas and electricity bills: 51% of Dual Fuel Energy customers who received a price for switching with Gocompare.com saved £138.51 (01 Jul 2017 to 30 Sept 2017).

Car insurance: According to independent research from Consumer Intelligence in September 2017, 51% of customers could save up to £279.42 with GoCompare Car Insurance.

Home insurance: According to independent research from Consumer Intelligence in September 2017, 51% of customers could save up to £70.82 with GoCompare Home Insurance. 

Supermarket switch: average annual saving £434.40 (Source: On 29 December 2017, Bilendi conducted an online survey among 2,334 randomly selected British adults who are Maximiles UK panelists.) 

**On 29 December 2017, Bilendi conducted an online survey among 2,334 randomly selected British adults who are Maximiles UK panelists. 

***Office for National Statistics’ provisional estimate of median UK household disposable income for the financial year ending 2017 is £27,200 (published 28 July 2017).  The ONS inflation figure for December 2017 was 3%.

Therefore, a 3% rise would be £816. 

On all Bilendi research, the margin of error-which measures sampling variability-is +/- 2.2%. The results have been statistically weighted according to the most current education, age, gender and regional data to ensure samples representative of the entire adult population of United Kingdom. Discrepancies in or between totals are due to rounding.

About GoCompare

GoCompare is a product and price comparison service that helps people to save time and money on boring things like insurance, energy bills and other household outgoings, so that they have more to spend on interesting, fun things.

GoCompare is proudly independent, free and fair. We aren’t owned by an insurer, we don’t charge our customers for using our service and we never accept adverts or sponsored listings. This means all the comparisons we make are totally unbiased and won’t cost our customers a single penny to use.

Speaking of pennies, yes we do make money. We use that money for things like paying our people, keeping the lights on and investing in new and innovative ways to make our comparison service better for our customers. 

However, what we get paid won’t affect the price you pay and you won’t find it cheaper by going direct - that’s a promise. We also never make money by selling any customer data, which means your information is safe with us.

Since we launched in 2006, we’ve saved our customers billions of pounds and we’re not done yet, not by a long way. We reckon that there are billions out there still to be saved by switching, and we want to help the UK take it back. We’ll do that by working with our carefully selected partners to get you value for money deals and make switching easier than ever before.

We’re the only comparison site to be invited to join the British Insurance Brokers’ Association (BIBA). We were extended this honour by BIBA due to our commitment to finding our customers the right cover, so you’re in good hands.

In 2016 GoCompare listed on the London Stock Exchange as Gocompare.com Group plc (GOCO), and we are authorised and regulated by the Financial Conduct Authority (FCA).

For more information visit www.gocompare.com and www.gocomparegroup.com

 

Contact information

Gordon Maw

gordon@mawcomms.co.uk