It’s no hidden secret that the average cost of living in the UK is rapidly on the rise and we don’t just mean the cost of our household bills. Prices are inflating all around us, proving incredibly challenging for families up and down the country particularly as the winter weather begins to creep in. With many already looking at ways they can reduce their monthly bills from energy prices to saving money on the weekly food shop, we’re here to help you find new ways you could save extra money each month.
Why is the Cost of Living in the UK Increasing?
A question on the tip of everyone’s tongues is ‘why is the cost of living in the UK increasing so rapidly?’ and rightly so. Much of the recent inflation seemed to occur very quickly, leaving Britons with little or no warning of what was to come, putting many in a difficult situation. The rising cost of living in the UK appears to be theresult of a number of causes: the rising cost of food and energy, the war in Ukraine and increased mortgage costs. and Covid-19 related supply shortages are also having an impact on what’s available to us. However, don’t just take our word for it. The answer really is in the data, with consumer prices reported to be 10.1% greater in September this year compared to September 2021, causing significant impacts.
What Support is Available?
With the cost-of-living increasing, yet income remaining the same, many have been looking into the support that’s available to them and their family to stay warm and fed. Luckily, the government have rolled out a number of schemes to provide individuals and families with extra support with the latest being the £400 energy bills discount.
If you are not already away of the scheme, households will begin to receive £400 off their energy bills from October 2022. The discount will be made in 6 instalments over a 6-month period throughout the winter to help tackle the rising cost of energy. Over 29 million households across the UK are eligible so, if you haven’t already begun to receive your discount, find out more about your eligibility online.
Cost Of Living Versus Minimum Wage
It’s no secret that the required national living wage is higher than the national minimum wage. With prices continuing to rise all around us, the cost of living is likely to become an even greater issue for those receiving a low income, particularly when it comes to energy bills and grocery shopping. Whilst it can be scary to think about the unknown, budgeting for the months ahead can help you better manage what’s ahead, providing greater insight into the funds you have available to spend and those that should be put by for bills and other necessities. Though it’s easier said than done, it will put you in a better position financially, allowing you to forecast spending habits that can be adapted to meet your new needs. Don’t forget to review the other government schemes available to find out where else you could potentially be saving money this winter.
Tips to Reduce The Cost Of Living
The average cost of living in the UK is set to remain high for some time so the best way to go about it for the time being is to look at how you can reduce your outgoings such as by buying an electric heater. Below, we’ve explained some easy yet necessary changes you could make to help you save on your energy bills and more without having to completely change your lifestyle to accommodate the recent inflation we have experienced here in the UK.
- Shower, don’t bath – Taking a shower instead of a bath can help you save up to £60 per year. Try to keep your shower time to a minimum where possible too such as by turning it on only when you are ready to get in and switching it off again as you lather up
- Look for food offers – Looking for offers on food during the weekly shop is a great way to save extra pounds per month. If you haven’t already signed up to a Tesco Clubcard, now could be the perfect time. Search for the best deals online before picking them up in store!
- Take electricals off standby – Keeping your favourite electrical items on standby could be costing you up to £40 per year. Instead, switch them off completely by the wall to start saving each month. Thank us later!
- Track your spending – Keeping a close eye on your spending habits will help you determine where you should cut back first, helping to make sure you are tackling the problem at its source
- Cool wash cycles – Whilst it can be tempting to wash our clothes at a high temperature, it’s much more cost effective, environmentally friendly, and generally better for your clothes to wash them on a 30-degree cycle. Doing so consistently can help you save £20 annually.
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