It’s a question many have pondered over a cup of tea or a scroll through social media: would you recommend your energy provider, your bank, or your gym to a friend if there was a little something in it for you? As it turns out, more and more companies are banking on the answer being a resounding yes. On January 31, 2026, The Guardian published a detailed look into the world of referral schemes, those increasingly popular programs that reward customers for bringing new faces into the fold.
Richard from Suffolk is a case in point. As a customer of Octopus Energy, he didn’t just keep the good news to himself—he shared it with eight friends and family members, all enticed by Octopus’s simple yet effective referral scheme. For every person Richard convinced to make the switch, both he and the new customer received a £50 credit. “I really think referral schemes are a good idea. It’s an incentive to swap – without it, I think people wouldn’t bother switching and would carry on as they were,” Richard told The Guardian. His father was especially pleased: “That paid for a month’s worth of electricity for my dad, which he was really happy about.”
This isn’t just an energy sector phenomenon. Across banking, shopping, entertainment, and even fitness, referral programs are everywhere. The basic model is straightforward: a customer shares a unique link or code with a friend or relative. If the recipient signs up or makes a purchase, both parties get a reward. This might be cash, credit, discounts, a free month, or loyalty points. For businesses, it’s a modern twist on word-of-mouth advertising—often cheaper and more effective than traditional marketing campaigns. As The Guardian notes, these programs are "an easy win" for companies seeking good-quality new customers at a lower cost.
But as with any deal that sounds too good to be true, consumers are urged to tread carefully. Jane Hawkes, founder of the consumer rights website Lady Janey, told The Guardian, “Refer-a-friend schemes can be genuinely useful in offering cash bonuses or discounts for both parties. However, it is important to approach them with a degree of caution and common sense.” Her advice for referrers? “Be honest about your experience, and transparent about the fact that you’ll receive a bonus if someone uses your link.” For those on the receiving end, Hawkes recommends checking the small print, comparing alternatives, and making sure the product fits your needs and budget.
Martyn James, another consumer rights campaigner, echoed these warnings. He advised everyone to read not just the product’s terms and conditions, but also those of the referral scheme itself. “Be wary of social media referrals. These can condemn both parties to endless spam linked to the sector of the business you’ve referred to,” James said, highlighting a potential pitfall in the digital age.
Most referral schemes require that the referred person is a brand-new customer. This means you’re putting your reputation on the line—so it helps if the company is well regarded. Octopus Energy, for instance, was named a Which? recommended provider for the ninth consecutive year this January, the only major energy supplier to achieve this distinction. Richard’s friends and family, it seems, made the switch with confidence.
Banking and finance are fertile ground for these schemes. Lloyds Bank, for example, offers £50 to both the referrer and the new customer for each successful current account sign-up, with a cap of five referrals per year—meaning up to £250 in rewards. Monzo, the digital bank, offers up to £50 per referral, though the exact amount varies (£10, £20, or £50), and the new customer must use their card within 30 days. Starling Bank takes a different tack, providing a free National Trust day pass to both parties upon a successful referral. Online savings marketplace Raisin offers £100 to each party if the new customer opens a fixed-rate savings bond with a minimum deposit of £10,000. Wealthify, a digital investing service, gives £50 to both parties when the referred friend opens an investment account and keeps at least £1,000 invested for six months.
Energy and broadband providers are just as eager to reward customer evangelists. Octopus Energy’s scheme, as Richard experienced, gives £50 credit to both parties once the new customer has fully switched and made their first direct debit payment—a process that typically takes about four weeks. British Gas offers a range of incentives: £100 Amazon vouchers or PayPal credit for boiler referrals and £50 Amazon gift cards for switching both gas and electricity. Virgin Media’s refer-a-friend deal provides up to £50 cash rewards for broadband, TV, and home phone packages, though availability depends on the recipient’s location. Sky ups the ante with up to £100 in vouchers for referrals to its products, but reminds customers, “You must only send the referral link to close friends and family. Please don’t spam.”
Plusnet, another broadband provider, offers up to £1.25 off the monthly bill for each referred customer who remains subscribed, suggesting the possibility of free broadband if enough friends sign up. The mobile network Three offers £40 for broadband referrals and £20 for pay monthly SIM referrals, with rewards paid straight into your current account or PayPal—remarkably, you can even refer someone if you’re not a Three customer yourself. Voxi, a Vodafone brand, gives both parties a gift card (Amazon, PayPal, or Just Eat) worth up to £20 after both have paid their monthly plan bills for two months.
The reach of referral schemes doesn’t stop there. Gyms like Lifestyle Fitness, Anytime Fitness, Gymbox, and Third Space offer deals ranging from free day passes to discounted memberships and gym credits. In retail, LG Electronics gives both parties 10% off their next order, while clothing retailer Hobbs offers 15% off for both the referrer and the new shopper. Even food delivery gets in on the act: Zoom by Ocado hands out £10 off to both parties for their first or next order, though it’s only available in select London neighborhoods.
Entertainment companies are also keen to reward loyalty. Cineworld’s Unlimited membership program gives both the referrer and the new member a free month of membership. In theory, referring twelve friends could net you a year’s worth of cinema for free—now that’s a blockbuster deal!
While referral schemes can be a win-win for everyone involved, the experts agree: transparency, caution, and a critical eye are essential. As these programs become ever more common, customers are wise to remember that a little research goes a long way—after all, nobody wants a deal that turns out to be more trick than treat.