Earning cashback and rewards on spending you would do anyway is one of the simplest ways to put money back in your pocket. With the right combination of cashback sites, credit cards, and loyalty programmes, a typical UK household can earn hundreds of pounds per year.
Cashback Websites
The two major UK cashback sites are TopCashback and Quidco. They work by earning commission from retailers when you click through to buy, then sharing that commission with you.
How They Work
- Browse the cashback site for the retailer you want
- Click through to the retailer’s website via the cashback link
- Shop and pay as normal
- Cashback appears in your account (typically 1-8 weeks later)
- Withdraw to your bank, PayPal, or boost to gift cards (often with a bonus)
TopCashback vs Quidco
| Feature | TopCashback | Quidco |
|---|---|---|
| Number of retailers | 5,000+ | 4,500+ |
| Membership | Free (Plus available) | Free (Premium available) |
| Cashback rates | Often highest | Competitive |
| Payout options | Bank, PayPal, gift cards | Bank, PayPal, gift cards |
| Gift card bonus | Up to 10% extra | Up to 10% extra |
Tip: Check both sites before making a purchase — rates vary by retailer and change frequently. Some users maintain accounts on both.
Best Uses for Cashback Sites
| Purchase | Typical Cashback | Annual Saving |
|---|---|---|
| Insurance (car, home, travel) | £20–£50 per policy | £40–£100 |
| Broadband/mobile switching | £30–£60 per switch | £30–£60 |
| Online shopping | 1–8% | £50–£200 |
| Energy switching | £20–£40 | £20–£40 |
| Holiday bookings | 2–6% | £30–£100 |
Cashback Credit Cards
Cashback credit cards return a percentage of your spending as cash. The best options in the UK:
| Card Type | Typical Cashback | Best For |
|---|---|---|
| Flat-rate cashback | 0.5–1% on all spending | Simplicity |
| Tiered cashback | Higher rates on categories (groceries, fuel) | Targeted spending |
| Introductory offer | 3–5% for first 3 months | Short-term boost |
| Amex (where accepted) | 0.5–1.5% | Higher rates, accepted at fewer places |
Rules for Cashback Cards
- Always pay in full every month — interest charges cancel out cashback many times over
- Set up a direct debit for the full balance
- Use the card for everyday spending you would make anyway
- Never spend more just to earn cashback
A household spending £1,500/month on a 1% cashback card earns £180/year for spending they would do anyway.
Loyalty Programmes
Supermarket Loyalty
| Programme | Key Benefits |
|---|---|
| Tesco Clubcard | Clubcard Prices (up to 50% off), points for spending, partner vouchers |
| Nectar (Sainsbury’s) | Points on spending, personalised offers, Nectar Prices |
| Lidl Plus | Weekly coupons, scratch cards, money-off offers |
| Co-op Membership | 2p per £1 on selected own-brand products |
Clubcard prices alone save the average Tesco shopper £200–£400/year.
Other Loyalty Programmes
| Programme | How It Works |
|---|---|
| Boots Advantage Card | 4 points per £1 (worth 4p each) — effectively 4% cashback |
| Costa Club | Points on purchases, free drinks |
| Avios (BA, Amex) | Air miles for flights and upgrades |
| Nectar | Earn across multiple brands (Sainsbury’s, Argos, eBay) |
Stacking Strategies
Maximise your returns by combining multiple cashback methods:
Example: Buying Car Insurance
- Cashback site — click through TopCashback/Quidco (earn £20–£40)
- Cashback credit card — pay with your cashback card (earn 1%)
- Comparison site — use to find the cheapest premium
- Total extra earned: £25–£50 on a single purchase
Example: Weekly Supermarket Shop (£100)
- Loyalty card — scan Tesco Clubcard for Clubcard Prices (save £5–£15)
- Cashback credit card — pay with card (earn £1)
- Personalised offers — use Clubcard offers (save £2–£5)
- Total weekly saving: £8–£21 = £400–£1,000/year
Realistic Annual Earnings
| Source | Conservative | Optimistic |
|---|---|---|
| Cashback sites | £100 | £300 |
| Cashback credit card | £120 | £250 |
| Supermarket loyalty | £150 | £400 |
| Other loyalty (Boots, etc.) | £30 | £80 |
| Total | £400 | £1,030 |
Getting Started Checklist
- Sign up for TopCashback and Quidco (free)
- Install their browser extensions (reminds you when cashback is available)
- Apply for a cashback credit card (if you always pay in full)
- Download supermarket loyalty apps (Tesco, Nectar, Lidl Plus)
- Set up a browser bookmark folder to check cashback sites before buying online
- Route insurance, broadband, and mobile renewals through cashback sites
The key principle: earn on spending you would do anyway. Never buy something just because it offers cashback. For more ways to reduce spending, see our money saving tips and switching bills guide.