Hi,Hi Taz and welcome
You really will save money using a bike, as well as feeling fitter and healthier, so I hope you really enjoy riding. If I were you I would put up a second post in the Bikes - What Bike part of the forum, with the headline "Should I buy this Raleigh Panache?" and swarms of advisors will descend. Just make it clear that you're a beginner, or you might get people suggesting you rebuild it from scratch or something (there are some serious techies on here!).
I used to drive a car for my commute and the worst expense was parking. I still have to use a car sometimes (for carrying stuff or being out very late or having to dress up), but even with a short, part-time commute I reckon I saved about £1,000 last year.
NB I drive a cheap-ish hybrid (less than £300 new) and it's great for commuting.
Thanks for the advice, will do that now. I also have a car but I don't want to use it for everything, I only want to use it if the weather is really bad and which would be troublesome for cycling.