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If you're not already on a fixed energy deal or special tariff, you - like 2/3 of homes in Eng, Scot & Wales - are on your firm's bog-standard default tariff, which means its price is dictated by the regulator, Ofgem's Price Cap.

The good news is that Cap has been cut by 7% today, meaning for every £100 you were paying, for the same energy use you'll now roughly pay £93. Yet that's still 10% higher than this time last year, and the current prediction is it won't get much cheaper.

So, frankly, the Price Cap still looks a Pants Cap - if you're on it, you're likely overpaying...

- You can lock in 10% cheaper with the cheapest fixes.
- Low usage? You may be better off with a £100 off standing charges tariff.
- Sophisticated user? Try possibly v cheap rapid price change deals.
- Got an electric car? There are specialist EV tariffs.

Let me take you through it step-by-step...

1. Unsure if you're on the Price Cap? You probably are. The Cap applies to all firms' standard consumer tariffs - the default one you're on if you've never changed, or not switched since your fix ended. And while it's called a Cap, in reality almost all firms price very near to the max. Here are the most common Cap names...

On one of these tariffs? If so, you're on the Price Cap... British Gas Standard Variable \| EDF Standard (Variable) \| E.on Next Next Flex \| Octopus Flexible Octopus \| Ovo Simpler Energy \| Scottish Power Standard

2. It isn't a Cap on what you pay... it limits firms' daily standing charges and cost per unit of energy used. That means use more and you pay more. The Cap varies by region and payment method. Our updated 'What will I pay from today?' calc works out your new energy costs. To give you an idea, here are today's new Direct Debit averages.

	Electricity	Gas
Unit rate	Now: 25.73p/kWh Was: 27.03p/kWh	Now: 6.33p/kWh Was: 6.99p/kWh
Daily standing charge	Now: 51.37p/day Was: 53.8p/day	Now: 29.82p/day Was: 32.67p/day
See the exact region-by-region caps, which also includes info for the prepay meter and pay in receipt of bills caps.

As the cost of gas has dropped around 9%, compared to 5% for electricity, those with gas will typically see bigger falls.

3. THE CHEAPEST FIXES: Lock in at 10% LESS than today's Price Cap. A fixed tariff is where the rate is set for, usually, a year or more. Its prime advantage is you get peace of mind of no price rises, but currently there are also direct savings too, as even after today's Price Cap fall, the fixes available are materially cheaper than it. Today's new Price Cap, like all of them, only lasts three months. For what's next, see Price Cap predictions below.

Mid-sized firm Ecotricity* has just launched a 1yr fix that is the new cheapest, which on average saves you just over 10% compared to the current Cap. Ecotricity says it's "100% green" (15% self-generated, the rest "from green generators/wholesale markets") and "profits are reinvested into new green infrastructure rather than paid as dividends."

To find your cheapest, use our whole-of-market by default Cheap Energy Club comparison, as your exact winner depends on where you live & how much you use

Top-pick cheap standalone energy fixes (1) All accept both switchers & existing customers
All links via Cheap Energy Club to give a bespoke price (not N. Ireland (2))
New. Ecotricity EcoFixed - Green Tariff July 25 v5 12mth fix. - Smart meter needed (if you don't have one, it'll fit one) - Dual fuel, elec-only or gas-only - Monthly Direct Debit only	Save avg 10.2% compared with today's Price Cap. £75/fuel early exit fees. Limited numbers, so it may go quick.
New. Outfox Energy Fix'd Dual Jul25 v1.0 12mth fix. - No smart meter needed - Dual fuel - Monthly Direct Debit only	Save avg 9.6% compared with today's Price Cap. £100 dual-fuel early exit fees. Outfox has 18mth & 2yr dual-fuel fixes similarly priced, but with higher exit fees.
New. E.on Next Fixed V66 12mth fix. - No smart meter needed - Dual fuel or elec-only - Monthly Direct Debit only	Save avg 8.8% compared with today's Price Cap, including £20 MSE dual-fuel cashback. £50/fuel early exit fees.
New. EDF Simply Fixed Jul26 v13 12mth fix. - No smart meter needed - Smart prepay customers allowed - Dual fuel or elec-only - Monthly Direct Debit, cash/cheque or smart prepay	Save avg 7.2% compared with today's Price Cap, including £20 MSE dual-fuel cashback. £50/fuel early exit fees.
Octopus Energy Fixed June 2025 v1 12mth fix. - No smart meter needed - Dual fuel, gas-only or elec-only - Monthly Direct Debit only	Saving avg 3% compared with today's Price Cap. No early exit fees. A no-risk fix, as there are no exit penalties, so you can leave whenever you want if things change.
Ovo, Tulo, British Gas and So Energy's fixes undercut Octopus, but it's included as it has no exit penalties. There is also a provider, Home Energy, pricing slightly under Ecotricity on average, but it is a variable deal, not fixed, so there's no price certainty. All are detailed via our Energy Club. (1) Full info in the Energy Club comparison. It includes non-standalone tariffs, ie, those where you need to get other products such as broadband or boiler cover. (2) For help with Northern Irish tariffs, see N. Ireland energy.

Q. I'm on prepay - can I fix? Yes, if you're on a smart meter. Sadly not if you're on old-school key or card meters. The cheapest smart prepay fix currently is EDF's 12mth fix (see above), which is 7% cheaper than the July Price Cap and has £50 per fuel early exit penalties.

Q. Can I just grab my existing provider's fix? Yes, but this is about getting a cheap fix - be careful not to lock in at a high price. Your provider's fixes should be in the Cheap Energy Club comparison, so use it to compare it to the cheapest. If it's not too far away, then go for it.

Q. Is getting a longer fix than these worth it? It gives you price certainty for longer, and means you needn't switch as frequently. Yet no price predictions go much beyond a year ahead. So it's tough to know - the more you value certainty over definitely getting the cheapest price, the better it is. It's worth noting too that the early exit penalties tend to get high the longer you fix for.

Q. What is 'MSE cashback'? Some providers pay energy comparison sites to facilitate the switch (you still get the same price as going direct). Yet unlike other sites, we don't default to hiding tariffs that don't pay. Instead, we show them all, but when we get paid to switch you, we give you a chunk of it as cashback, so those that pay us are relatively cheaper for you, so likely more people switch to them. Win-win.

If you're a low user, MSE cashback can boost savings even more, as it'll make up a bigger effective discount - we factor the cashback into your savings on Cheap Energy Club so you can see.

4. The cheapest fixes are predicted to substantially undercut the Price Cap over the next year (though nowt's set in stone). The Price Cap rate moves every three months, changing mainly due to moves in wholesale costs. Yet there's a time lag.

The next Cap, starting in Oct, is based on average wholesale costs from mid-May to mid-Aug prices (so we're halfway through it). Currently, the current prediction is for the Cap to stay roughly flat (far better than was predicted). The graph and table below take you through it...

How energy Price Cap predictions have moved (1) Figures are based on Ofgem's supposed typical use
When predicted	Oct-Dec Cap prediction	Jan-Mar 26 Cap prediction	Apr-Jun 26 Cap prediction
3 weeks ago	£1,724/yr Up 0.2%	£1,734/yr Up 0.6%	£1,805/yr Up 4.1%
2 weeks ago	£1,760/yr Up 2.3%	£1,774/yr Up 0.8%	£1,856/yr Up 4.6%
1 week ago	£1,783/yr Up 3.7%	£1,820/yr Up 2.1%	£1,873/yr Up 2.9%
NOW	£1,720/yr No change	£1,713/yr Down 0.4%	£1,801/yr Up 5.1%
For reference: Cheapest 1yr fix... £1,545/yr (10% cheaper than the Cap).
(1) Average of British Gas, E.on Next and EDF predictions.

As you can see, forecasts spiked due to the Israel - Iran Middle East conflict. Now that's calmed, wholesale rates have dropped back to where they were. Yet as the Price Cap is based on a three-month average, the fact it spiked isn't irrelevant - that spike is now baked into Oct's price.

That means we'd need continued much lower prices to see a decent-sized cut coming in Oct, and very substantial drops for it to bring Oct's rates down to anything close to the current cheapest fixes.

However, once you get to next Jan's Cap, it's crystal-ball gazing. Nothing is baked in, so global political changes could lead to big swings one way or the other. Yet all we can do is go on the current predictions...

Of course, if you fix and prices rise, you're quids in. So, perversely, the actual concern is that things get much cheaper, so much so that it's lower than the rate of current cheapest fixes.

Remember, you're always free to leave a fix... you just may need to pay the early exit penalties (you can always leave penalty-free within the last 49 days of your fix). These are typically £50/fuel for a 1yr fix, so just a few percent of a typical annual bill (though a bigger relative hit for lower users).

If prices really dropped, ditching a fix would be a reasonable option, and it's very likely if you got one of today's cheapest fixes, you'd at least have been saving for the next two Price Caps - so six months - anyway.

While past performance is no predictor of the future... as my infographic below shows, at every point over the last year, on average, you'd have been better off getting the cheapest 12mth fix than going on the Price Cap.
5. £100 OFF standing charges beats fixes for lower users. There's nothing bigger in my energy emailbag than complaints about the (moral hazard that are) £300ish a year standing charges, the amount you pay just for the facility of having gas & electricity even if you don't use it. There are plans for a no standing charge Price Cap option sometime this winter, but nowt is confirmed. Right now though...

Get £100 off the Price Cap with a tracker tariff. The EDF Simply Tracker Extra tariff* tracks the Price Cap until 30 Sept 2026 - so it will move with that - but has a £50/yr lower standing charge for gas, and £50/yr for electricity, so if you use it for both, that's a flat £100/yr cheaper. So for those with very low usage (under roughly £85/mth) where the standing charges make up a larger portion of the bill, this can be a decent saving.

The best thing to do is use the Cheap Energy Club comparison, so you can see how it stacks up for you on the current Price Cap (and you get £20 MSE cashback if you switch via that).

It's available for new & existing customers on gas, elec or dual fuel, and allows most payment options, including smart prepay. Early exit penalties are £25 per fuel.

There are a few other discount Price Cap tracker tariffs too, all last 1yr. The strongest is Outfox Energy, which offers £100 off a typical bill over a year on unit rates, though based on current predictions that doesn't beat fixing. There's also an E.on Next tracker at £50 off unit rates and a British Gas tracker which is £50 off standing charges, so both are beaten by the other trackers.

6. Rapid change of use tariffs - can be substantially cheaper. These are tough to display via the traditional comparison site model, so let me walk you through the main ones...

Octopus Energy Tracker & Agile. These are best for sophisticated users who get how energy markets work, though they can be very cheap for everyone who has (or gets) a smart meter. With the Octopus Tracker tariff, rates change daily based on wholesale costs. It's been 30% cheaper than the Price Cap on average over the last year, but over the winter, it had periods of being costlier (especially when wholesale rates are higher).

The elec-only Octopus Agile tariff's rates change half-hourly, based on wholesale prices. It can even pay you to use energy in the middle of the night, but may be very costly at peak times. It's good for those who can nimbly shift their usage to take advantage of super-cheap times or who have battery storage.

The Octopus tariffs are only available for existing customers, though to get 'em, you could first try switching to the Flexible Octopus Price Cap tariff, then once in, switch to one of these.

7. Got an electric vehicle? Consider a dedicated EV tariff. Several firms offer specific tariffs with cheaper electricity overnight for charging your electric vehicle (EV). Full details in our EV tariffs guide, but in brief, there are two types:

'Add-on' tariffs, where you can only charge your car on the cheaper rate. Ovo and Scottish Power offer these, so you can add EV charging to whichever of their tariffs you're currently on, and you'll get a cheap rate to charge your EV at any time. All other electrical use in your home will be charged at your existing tariff rates. So if you can get a decent fixed tariff from these firms (there is a decent Ovo fix right now via Cheap Energy Club), the fact you can charge your EV even cheaper is a boon.
Two-rate tariffs giving you cheaper elec overnight. Most EV tariffs offer five to seven off-peak hours a day (typically from midnight to 5am) and charge around 7p to 10p per kilowatt hour of elec use (the current Price Cap rate is 25p to 29p), though peak rates can sometimes go above the Price Cap rate. The benefit here is if you've other appliances that you can use overnight, they'll cost less too.

8. Are solar panels worth it? As well as helping you save on energy bills, solar panels can earn you cash - but they cost an average of £6,000. See our Are solar panels worth it? guide.

9. Can you cut bills by cutting your use? Obviously, cutting use cuts bills, so we've some detailed guides that can help:

- 70+ ways to save energy includes a mix of hardcore savings and some thrifty crowd-sourced tips. From cutting your boiler flowrate to tactical curtains, getting the right freezer temp and more.
- Energy mythbusting covers less clear-cut issues, such as: 'Is it expensive to run an electric fan?'

10. What to do if you're struggling to pay. It's always worth talking to your energy firm. Be polite and straight with it, and make sure you explain if you're vulnerable. There can be hardship & debt grants from energy suppliers. For far more guidance, see our full What to do if you're struggling to pay energy bills guide.

DON'T believe the fake 'Martin Lewis' or 'MSE' ads
Lots of scam ads litter social media and even newspaper websites - some of these lie that we or Martin promote Bitcoin, binary trading etc. See Fake ads warning.

Caution! Home insurance prices DOWN 4%... so don't just renew thinking if the price stays the same it's a good deal. It means you're likely overpaying
Check using our Compare+ tool that has all the key tricks in one
'Thanks. Home insurance renewal up £300, so I used your tool & saved £600'

Yes, you read it right. Home insurance costs have fallen 4% year-on-year (source: Pearson Ham) but that's on the back of huge rises, leaving prices still 40% higher than in 2021 (source: MoneySupermarket). So ALWAYS check how your renewal price compares against the market using our Compare+ Home Insurance tool and tips - don't just settle and assume a renewal that's the same or only a little bit up on last year is a good deal.

Though averages are down, some insurers will still be trying to push prices up - Frank emailed us last week: "I've just saved a whopping £605. My house insurance renewal quote had increased by £295 for no reason! I followed the guides and Compare+ tool to the letter, and triple-checked everything properly just as Martin's page told me to, and my quotes all came in under £300. I've just paid £220, as opposed to what would've been £825 if I hadn't done this! Well worth this morning's work! THANK YOU all so much!" Three quick need-to-knows...

The situation's similar in car insurance: Try the Compare+ Car Insurance tool.

1. Compare+ Home Insurance does far more than just compare... It has a host of added tools, info and tricks to help get your costs right down - and is a quick way to save you money.

You speedily fill in a questionnaire. Answer our Compare+ Home Insurance question set (we borrow MoneySupermarket's - we're part of the same group. If you've used that before, your answers are auto-filled).
As you go through the questions, you get the unique... PRICE IMPACT INDICATOR. Eg, during the questionnaire, when asked what locks you have, you'd probably assume better locks cut the cost of cover. But the data surprisingly shows it has an almost negligible impact on price. This is why every question in the tool has a 'low', 'mid' or 'high' label, telling you whether - and by how much - the answer impacts the price of your cover. You can click each label to read the full info.
You then get your benchmark quote to start the saving. This is your cheapest quote from the MoneySupermarket comparison, so you can see a price straightaway. Helen emailed in May: "Admiral's quote was £530 for home insurance. I turned it down and used your site. Sky came out cheapest with better cover. Even Admiral on the comparison site was £350, so they wanted to charge an extra £180 for loyalty!!!" Yet even then you should try to beat it. Compare+ shows which other comparison sites to add in, and in what order.
We'll tell you whether you're too early, too late, or pure Goldilocks. While it sounds crackers, how soon you get a policy before renewal can have an up to 25% impact on what you're charged (we get this info from analysing up to 650,000 quotes). Our tool will tell you when to come back if you're too early (don't worry, you can save the info so you needn't re-enter it), and if you're too late, we've calendar reminders so you time it right next year.
Personalised tips on how YOU can cut costs. After analysing your data, we'll show you other ways to try to cut your costs further (all are trial and error though), such as...

- Will upping the voluntary excess (the amount you pay towards a claim) save you money?
- Can you pay annually rather than monthly?
- Can you save by combining your home and car insurance?
- If you want to stick with your existing insurer... benchmark the cheapest and haggle.
- Can you get cashback on the policy to lower the cost?

2. Are you sure you're covering the right thing? Everyone, including renters, should consider contents insurance, but buildings insurance is usually only for freehold homeowners (otherwise it's generally the management company or landlord's responsibility - check your lease if you're not sure). This image shows how to think about it...

- Contents insurance: Beware UNDERinsuring. Many underinsure, thinking: "I'd never claim for everything"... but insure only half your contents' value, then claim for, say, a TV, and you may only get half the TV's value once the insurer assesses whether the cover was accurate. Use a contents calculator.

- Buildings insurance: Beware OVERinsuring. Many wrongly insure for their home's market value, but what counts is how much it'd cost to rebuild if it was knocked down. Use a rebuild cost calculator to find out.

3. Make sure the policy's right for you, and complain if you're unfairly treated. As with any insurance, check the policy details to ensure it's the cover you want, and that the insurer's regulated by the Financial Conduct Authority before you buy (all on Compare+ are). If a claim's unfairly rejected, you've a right to take 'em to the free Financial Ombudsman.

Urgent. The best of both worlds! Top 1yr savings FIX, lock in 4.55% but with access if needed. The benefit of a savings fix is the rate's guaranteed. The cost is usually that you can't access your cash. Yet the new top payer, Marcus (part of Goldman Sachs) with a 4.55% 1yr fix* (min £1, max £250k), locks in the rate and gives unusual flexibility in that, if necessary, you can withdraw without notice by closing the account, you just lose 90 days' interest (or any interest paid if you close before 90 days). It tells us it could be pulled any minute, though. The top fixed cash ISAs have to offer this type of flexibility, but their rates are lower than Marcus, so they're only worth it if you'd pay tax on the interest...

Alternatively, top easy-access rates are higher (but unlike fixes, they're variable, so could drop): There's app-based Atom's 4.75%* (max £100k) saver, though the rate drops to 2.5% in any month you withdraw. It's beatable for those who haven't used this tax year's cash ISA allowance by Trading 212's 4.96%* (max £20k). Or those new to Chase can get 5%. Full info & options in Top savings.

Kärcher pressure washer big discount codes. MSE Blagged. Three models - the K5 for £295 (normally £410), the K4 for £230 (£310), or the K Silent EcoBooster for £150 (£200). 4,000 codes available. Kärcher

New. First Direct's boosted its switching bonus to £200 (FREE £175 cash + £25 Amazon). The top all-round bank bribe deal just got stronger. For the next fortnight, the First Direct 1st Account* gives newbies switching to it free £175 cash plus (only via this link) a £25 Amazon voucher. First Direct is the top-rated account for switchers, with a 92% 'great' rating in our most recent poll. Its debit card gives near-perfect exchange rates abroad, you get access to a 7% regular saver you can put up to £300/mth in & an ongoing £250 0% overdraft for many. See our full First Direct review, including crucial eligibility info. For info on all five current FREE cash switch deals, see Best current accounts.

Reports that a cash ISA limit to be slashed announcement is imminent... See Martin's 'It's not nudge economics, it's likely piss people off economics' analysis.

£90 of No7 beauty & skincare £35. Eight items, including serum, lipstick & more. Available to everyone from tomorrow, but we've early access NOW in case stock runs out via this No7 early-access link.

Martin: 'Should you pay in pounds or euros on plastic abroad?' Watch Martin's 60-sec pounds or euros video as an intro to his full easy-speedy CHEAPEST WAY TO SPEND ABROAD new episode of The Martin Lewis Podcast (listen on BBC Sounds | Apple Podcasts | Spotify & elsewhere). Plus how to see if you've £10,000s in lost pensions. Related: See Martin's cheapest way to spend abroad help from last week's email.

Halifax Reward account customer? It's axing its perks. See why it'll soon be time to scrap Halifax Reward.

Heads up. Amazon Prime Day predictions - will 49% off a Ninja air fryer return? Prime Day's next week, though it's a misnomer as it lasts four days, and while many deals are often meh, there can be hidden corkers. See Prime Day predictions & tips. Related: One-click check to see whether you can get up to £15 off at Amazon.

Premier Inn 20% off 3+ nights - any branch & dates till 30 Sept. Eg, Manchester £31/night. Book by 7 July

500Mb Sky broadband '£26/mth'. Switchers can get this 500Mb Sky broadband & digital line deal for £31/mth (available to 60% of UK homes) and you'll be emailed your choice of a £120 prepaid Mastercard or shopping voucher within 4mths of your first bill (do check your junk folder if not received). Factor that in as a discount and it's equivalent to £26/mth over the 2yr contract. Want other options? Use our full broadband comparison.

BLAGGED FOR MSE

- Up to £115 off Kärcher pressure washers 4,000 available
- 100 days' free access to 8,000 mags & papers Ends 31 Jul

DID YOU MISS?

- Martin vid: 'House offer accepted, then they wanted £20k more!'
- Google's Pixel 9a mobile & 500GB/mth data '£16/mth'
- Premium Bond prize rate to FALL to 3.6% in Aug
- Hot balance transfers... shift debt to 0% till Apr 2028
- Want an MSE Charity grant? Applications open this week

Martin's must-know for 18 to 39s (& their parents)

There's a FREE £1,000/yr available for most 18 to 39s who want to one day buy a first home. It's via a LISA, and EVERYONE that age should get £1 in one ASAP
Full help and Lifetime ISA best buys... earn up to 4.75% in savings, or invest

Lifetime ISAs (LISAs) are a powerful product for wannabe first-time buyers saving towards a deposit for a home. Many tell us it works brilliantly. I like this email Olly sent a while back: "Hi Martin and team. My girlfriend and I have just completed on our first house in West Sussex. I'd maxed out the LISA for the past six tax years and my girlfriend for five. Because of this, we received an extra £11,000 towards our deposit. Without this, we would not be able to afford it."

Yet the LISA is broken in parts. This week, the Treasury MPs Committee raised questions on it. When I gave evidence to it, my core focus was on one big injustice more below. But as I still overall see it as a good deal, let's start positively...

You get up to £1,000 a year free. A LISA is a tax-free savings or investment account that anyone aged 18 to 39 can open (so your last chance is the day before you're 40). Once it's open, you can keep it going. Its primary use is to help first-time buyers build a deposit, though it can also be used to save towards older age. Full step-by-step info in how LISAs work, but here are five brief need-to-knows...
1. A 25% bonus is added to everything you put in, up to £4,000 per tax year, till you're aged 50. So if you save £1,000, you'll have £1,250. Or save the full £4,000 and you'll have £5,000. See LISA bonus explained.
2. It's usable as a deposit on your first residential home (max property price £450,000). Those who've never owned / part-owned a home anywhere can use it towards a residential (ie, not buy-to-let) mortgage. Yet the LISA must be open a year before you can use the bonus, hence why most should put £1+ in now just in case.
3. A couple buying together can have one each. A LISA is an individual product, so a first-timer buying with someone who's owned before can still use it. Two first-timers can have one each, meaning up to a £2,000 annual bonus (though the property maximum is still £450,000). See how LISAs work when buying together.
4. Warning: If you don't buy a qualifying home (or wait till you're aged 60), there's a 6.25% cost to withdraw. The only ways to keep the bonus and take money out penalty-free are: a) when getting a mortgage on a first home, done via your conveyancing solicitor b) once you're aged 60+ c) if you die or have less than 12mths to live.
  
  If not, withdraw and you effectively get back 6.25% LESS than you put in (see how LISA penalties work). So put simply, if you save £10,000 over a few years, you'd expect to get £12,500 including the bonus. Yet take it out to not buy a qualifying home and you get just £9,375 back. So LISAs are only good for first-timers who know they'll buy a home under £450,000 at some point (I'm campaigning to change that rule), or are fine to keep money in until age 60.
5. Already got a Help to Buy ISA? This was the forerunner to LISA forerunner for first-time buyers (some still have them, but you haven't been able to open a new once since Dec 2019). While you can have both, you can't get the first-time buyer's bonus on both. See my Help to Buy ISAs v LISAs for which is best for you.
Why EVERYONE aged 18 to 39 who's never owned a house should get £1 in a LISA (if you haven't already); parents - give your kids £1. As LISAs must be open a year before you can use the bonus to buy a home, even if that seems aeons away, you may as well put £1 in one now, as that starts the clock ticking. Then, as long as it's more than a year later, if you suddenly realise you're buying a home, you can simply put real money in (up to £4,000 for that year) and use the bonus almost straightaway later (if you don't buy, withdraw the £1 and suck up the 6p loss).
Is a LISA worth using for retirement savings? Technically, it isn't linked to retirement, just for age 60+, though no one with a LISA has hit that age yet (it was only launched in 2017, so the oldest you could be is 48 now).

In general, for most employees, your work pension smacks the pants off a LISA because your employer has to contribute too - see my important warning to every employee in the UK blog. If you're not an employee but are self-employed, then pensions still generally win if you're a higher-rate taxpayer (because you contribute from your pre-tax salary, so to put £100 in only costs you £60 in your pay packet - see how pensions relief works).

Yet for basic 20% rate self-employed taxpayers, LISAs can be an option. One note the MPs raised, and argue should be changed, is LISA savings can reduce your Universal Credit eligibility, while pension savings don't.
LISA best buys. You can choose a tax-free savings LISA that earns interest, or a stocks & shares LISA so hopefully your investment value grows. As saving for homebuying is usually shorter term, for that you probably want to stick with the top LISAs for cash savings. Few big banks offer them, likely as they're scared people will wrongly use them for retirement savings and they're worried they'll be done for mis-selling. That leaves the top current LISA savings-payers as Moneybox at 4.76% and Plum at 4.75% (both let you put £1 in).

As saving for retirement is over a longer term the markets will hopefully outperform savings, so think about investment LISAs (it's a risk-based product, so your money could shrink, but with a good spread of investments it should do well over the longer term). Technically, you can have both types of LISA, but you can only put money in one of them each tax year.

LISAs' big problem: You can be fined for buying your first home

LISAs are a winner for most, yet some, especially in south-east England, need to think carefully before putting real money in one (the £1 is fine). This was the prime focus of my evidence to the cross-party Treasury Select Committee of MPs in Feb. It reported yesterday. Here's my press comment on that report...

"No first-time buyer should be penalised for accessing their LISA savings to buy their first property - as that's what the state, and the marketing, encourages them to do. Yet that's what happens when young people, priced out by inflation, try to use their LISA savings for a home above the £450,000 threshold (which hasn't moved since LISAs launched in 2017).

"It's understandable that they don't get the 25% bonus, but they are effectively fined 6.25% of their money (so £625 per £10,000 saved) to withdraw it. This is unfair, unjust and the rules need changing. If a LISA is used to buy a first property above the threshold, there should be no fine, they should instead get back what they put in.

"This flaw doesn't just hurt those with LISAs. It puts off many young people, especially from lower-income backgrounds (who tend to be more risk averse) from opening LISAs in the first place. This is something we've banged the drum about for years. So, I'm glad it appears in the Treasury Committee report. This small fix, with little cost to the state, would enable and encourage many young people to feel confident about LISAs - so it's critical it's addressed in the Government's imminently expected ISA review."

I'll be honest, I don't hold out much hope. I wrote to Jeremy Hunt when he was Chancellor and thought he was about to fix it - he didn't. And I've written to Rachel Reeves since. I will keep banging the drum. However, bigger change may be coming anyway - the new report out yesterday questions LISAs' value for money, whether LISAs are well targeted enough and more - plus ISAs are due to be reviewed by the Chancellor. See what the Treasury Committee said on LISAs.

Paying for a car on PCP or HP finance? Can you cut £100s or £1,000s off the cost? Please help test our new refinance tool. We launched a demo version in April, and have since used your feedback to improve our Can I cut the cost of my car finance? guide & tool. So why not give it a go, and do feed back on it to let us know if it helps (or not).

Ends Thu. Interrail 20% off Sept '25 to May '26 passes, unlimited European train travel + some ferries. The strongest deal it's done since Black Friday, eg, 7 days £143 for multi-country, £34 for single-country passes. Interrail sale

Martin: 'Three questions to ask yourself before you buy anything...' "These are my Money Mantras - there's one for if you're skint and one for if you're not." Watch Martin's Money Mantras vid.

Water compensation doubles for some (Eng), £100s for outages, poor service etc. See Water rights.

100 days' free access to 8,000+ digital mags, eg, Grazia, Gardeners' World, Vogue... that's your summer reading sorted. MSE Blagged. For Readly newbies & those who cancelled 6mths+ ago. Mag-nificent

New. Chase launches credit card with some decent perks... but is it worth getting? See Chase credit card.

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AT A GLANCE BEST BUYS

Longest 0%: NatWest (check eligibility) up to 34mths 0%, 3.49% fee, 24.9% rep APR interest
No-fee 0%: Barclaycard (check eligibility) up to 14mths 0%, 24.9% rep APR interest

Free £175 + £25 Amazon vch: First Direct 1st Account
New. Free £185 + perks: Club Lloyds

Fast fibre (100Mb+): Virgin '£21.24/mth'
Superfast fibre (500Mb+): Sky '£26/mth'

Car: Use our Compare+ Car Insurance tool

Home: Try our Compare+ Home Insurance tool

£5,000 to £7,499: People's Choice (check eligibility), 7% rep APR interest (6.5% on £7,000 to £7,499)
£7,500 to £15,000: M&S Bank (check eligibility), 5.9% rep APR

Top easy-access cash ISA: Trading 212 4.96%, min £1
Top easy-access savings: Atom Bank 4.75%, no min
Top one-year fix (with access if needed): Marcus (part of Goldman Sachs) 4.55%, min £1

Use our whole-of-market Cheap Energy Club

Up to 3GB data: Lebara, '£2.70/mth' for 3GB
4GB to 9GB data: Lebara, '£2.72/mth' for 5GB
10GB to 30GB data: Lebara, '£3.05/mth' for 10GB
31GB+ data: iD Mobile, '£3.67/mth' for 50GB

MSE NEWS

- Top story: Zopa launches 'Biscuit' current account paying 2% cashback

MONEY MORAL DILEMMA

Should I pay half the parking 'fine' my husband got while giving my parents a lift? My husband gave my parents a lift in my car to the GP surgery and got a parking ticket. He parked in the correct bay for patients, but didn't know he had to go in and enter the number plate at reception. He says I should challenge it or pay half the invoice because it was my parents he was driving to the surgery, and he wouldn't have got a ticket otherwise. But I wasn't driving or even in the car at the time. Should I appeal or pay, or is that up to him? Enter the Money Moral Maze: Should I contribute towards my husband's parking 'fine'? | Suggest a Money Moral Dilemma (MMD) | View past MMDs

- Win a barbecue grill
- Win a cycling jersey
- Win a pair of swimming goggles
- Win an electric bike & a year's supply of iced coffee

- Win a Bluetooth speaker
- Win a sun lounger
- Win a set of luggage worth £300+
- Win 12 bottles of wine and a barbecue meat pack

MSE TEAM BLOG

- MSE Forum highlights: Sheds, shirts & smartwatches

MARTIN'S APPEARANCES (TUE 1 JUL ONWARDS)

Thu 3 Jul - Ask Martin Lewis, BBC Radio 5 Live, 11.30am
Tue 8 Jul - This Morning, phone-in, ITV1, 10.20am

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