This coconut cake costs £1.71 total and makes 8 slices at 21p each. You make a basic sponge, poke holes in it, soak with a honey-water drizzle, then top with jam and desiccated coconut. Bakes in about 20 minutes at 180°C.
Best for: afternoon tea, packed lunches, budget pudding, kids' treats.
Eight slices of cake for £1.71. That works out to 21p each — less than most supermarket penny sweets, and considerably more satisfying.
This coconut cake is one of those recipes that sounds almost too simple to be worth making — a basic Victoria sponge batter, baked in a square tin, soaked in honey, and topped with jam and desiccated coconut. But that combination does something special. The honey seeps into the warm sponge through skewer holes, making it wonderfully moist. The jam and coconut topping adds texture and sweetness without any fuss. Total active time: about 15 minutes.
All ingredients picked up at Aldi or Tesco (prices checked March 2026). No specialist kit needed beyond a 19cm square tin, a mixing bowl, and a skewer.
Most budget cakes are dry. This one isn't, and the reason is straightforward: you don't just bake the sponge — you poke holes in it while it's still warm and pour diluted honey over the top.
The liquid soaks through every part of the cake before it cools, which means moisture is locked in from the inside. The jam-coconut topping then seals the surface. Result: a sponge that tastes richer than it has any right to at 21p a slice.
The most common question I get about coconut cake is whether you actually taste the coconut. The answer here is: yes, but gently. The coconut flavour is mostly in the topping rather than the sponge itself. If you want a stronger coconut hit, stir a couple of teaspoons of desiccated coconut directly into the batter before baking — it works well and barely affects the cost.
Full Cost Breakdown
| Ingredient | Amount | Approx. Cost | Source |
|---|---|---|---|
| Butter (softened) | 100g | 76p | Aldi/Tesco |
| Caster sugar | 90g | 11p | Aldi |
| Eggs | 2 medium | 28p | Aldi/Lidl |
| Plain flour | 120g | 7p | Tesco/Aldi |
| Baking powder | 1½ tsp | 5p | Aldi/Tesco |
| Milk | 2 tbsp | 2p | Any supermarket |
| Vanilla extract | Few drops | ~5p | Aldi/Tesco |
| Honey | 40g | 12p | Aldi |
| Jam (strawberry/raspberry) | 40–50g | 10p | Aldi/Asda |
| Desiccated coconut | 20g | 20p | Tesco/Asda |
| TOTAL (8 slices) | £1.76* | *incl. vanilla | |
| Cost Per Slice | 22p | ||
Ingredients
Makes 8 slices in a 19cm square tin
For the sponge:
- 100g softened butter
- 90g caster sugar
- 2 medium eggs
- 120g plain flour
- 1½ tsp baking powder
- 2 tbsp milk
- A few drops of vanilla extract (optional but recommended)
For the honey drizzle:
- 40g honey
- 1–2 tbsp water
For the topping:
- 40–50g strawberry or raspberry jam
- 20g desiccated coconut (divided: most for mixing with jam, a little for sprinkling over the top)
Step-by-Step Method
Heat your oven to 180°C (160°C fan / Gas 4). Line a 19cm square tin with greaseproof paper — along the base and up the sides.
Put the softened butter, sugar and eggs into a large jug or mixing bowl. Beat with an electric hand whisk (or by hand with a wooden spoon) for 2–3 minutes until pale, smooth and creamy.
Sift in the plain flour and baking powder. Add the milk and vanilla extract. Fold everything together until just combined — don't overmix. The batter will look slightly lumpy, but that's fine. Any remaining flecks of butter will melt during baking.
Pour the batter into the prepared tin and spread it level. Bake for 18–20 minutes. Check at 18 minutes — insert a skewer into the centre. If it comes out clean, it's done. If not, give it another 2 minutes.
In a small bowl, mix the jam with most of the desiccated coconut (save about a teaspoon for sprinkling over the top). In a separate cup, stir the honey and water together.
As soon as the cake comes out of the oven, leave it in the tin. While still warm, use a skewer to poke holes all over the surface — the more the better. Pour the honey-water mixture evenly over the top. Let it sit for 3–4 minutes to soak in fully.
Once the honey has soaked in, spread the jam-coconut mixture over the entire surface of the cake. Sprinkle the remaining desiccated coconut over the top. Leave to cool for at least 10 minutes before cutting.
Cut into 8 equal squares. Serve as they are, or alongside a cup of tea or coffee. The cake keeps well for 2–3 days stored in an airtight tin.
Cake is dry in the middle: You may have overbaked it slightly, or not poured enough of the honey drizzle. Next time, check at 17 minutes and be generous with the honey-water — it should pool slightly on the surface before soaking in.
Honey won't soak in: Make sure you're doing this step while the cake is still warm. A cold sponge won't absorb liquid the same way.
Jam topping slides off: Let the cake cool for a few minutes more before spreading the jam — if it's too hot, the jam liquefies and runs off. But don't wait until it's fully cold either, as a little residual warmth helps the jam spread smoothly.
Not enough jam to cover: Add another teaspoon or two — this happened during testing and a small top-up sorted it immediately.
- Using cold butter — the batter won't cream properly. Take butter out of the fridge an hour before.
- Skipping the holes — the honey drizzle just sits on the surface rather than soaking through. Don't skip this step.
- Overmixing the batter — fold, don't beat, once the flour goes in. Overworking develops gluten and toughens the sponge.
- Not lining the tin — with this much sugar and honey, it will stick. Line it properly.
- Adding the topping too late — the jam is easier to spread when the cake still has a little warmth.
✅ Is This Worth Making?
At 21p a slice, there's very little to argue with on cost. A supermarket own-brand coconut slice runs to about 60–80p. A bakery version? Easily over £1.50. This gives you eight slices for under £1.80 using ingredients from Aldi or Tesco that most households already have.
The texture genuinely surprised me. Budget cakes often come out cakey in the wrong way — a bit stodgy or too dry. The honey soak fixes the dry problem completely, and the sponge itself is light thanks to the baking powder and the milk loosening the batter. It's not fancy, but it's very good.
Verdict: ⭐⭐⭐⭐ out of 5. Recommended especially if you're making something for packed lunches, a kids' party, or an afternoon tea on a tight budget. The only reason it doesn't hit five stars is that the coconut flavour is mild — if you want more, stir extra coconut into the batter.
Make it if: You want a proper homemade cake for under £2. Skip it if: You're after a deep, intense coconut flavour — this is subtle and British-bakery-style rather than tropical.
Storage & Freezing
| Method | Duration | Notes |
|---|---|---|
| Airtight tin (room temp) | 2–3 days | Best within 48 hours |
| Refrigerator (covered) | Up to 5 days | Bring to room temp before serving |
| Freezer (wrap individually) | Up to 2 months | Freeze before adding topping for best results |
This recipe contains: Milk, Eggs, Gluten (wheat flour)
May contain traces of nuts depending on your brand of desiccated coconut — always check the packaging. Suitable for vegetarians. Not suitable for vegans as written.
Vinod runs Baking on Budget from the UK, testing every recipe multiple times before publishing. Every cost is calculated on the actual amount used — not the full packet price. He believes good food shouldn't cost a fortune.
Frequently Asked Questions
Can I use self-raising flour instead of plain?
Yes — just omit the baking powder if you do. Self-raising flour already contains a raising agent.
Can I make this in a round tin?
A 20cm round tin works well. The bake time stays about the same — check at 18 minutes.
Can I skip the honey drizzle?
You can, but the cake will be noticeably drier. The honey step is what separates this from a plain sponge. If you don't have honey, golden syrup diluted with a little water works as a substitute.
What jam works best?
Strawberry or raspberry are traditional and work very well. Apricot jam is also worth trying — it has a less sweet, slightly sharper flavour that cuts through the coconut nicely.
How do I make it more coconutty?
Stir 2 teaspoons of desiccated coconut directly into the batter before baking. This gives the sponge itself a coconut flavour, not just the topping.
Is this recipe suitable for children?
Yes. It contains no nuts and uses standard baking ingredients. Check allergen information for your specific brands, particularly the desiccated coconut.
Ready to Bake?
Next time you need a cake — for a birthday, a bake sale, or simply because it's 3pm and tea needs company — make this one first. Pick up desiccated coconut from the baking aisle at Aldi or Tesco, grab a jar of jam, and you're most of the way there. Everything else is likely already in your kitchen.
If you make it, let us know how it went in the comments — especially if you try stirring coconut into the sponge itself. That small tweak makes it a noticeably different cake.
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