Q Will there be more help with energy bills this winter for households? 

A In a word, no. In fact for some people, it unfortunately has the potential to be a little bit worse.  

There is help with energy bills on offer for households struggling with costs this winter, but it’s not as generous as what was in place last year. This help is now squarely aimed at the most vulnerable, which is bad news for those hit by the cost of living crisis who are just keeping their heads above water.  

During the peak of the energy crisis, the government rolled out big schemes offering immediate relief, like the Energy Price Guarantee and the £400 Energy Bill Support Scheme which made a real difference for millions of people.  This was alongside separate cost-of-living payments for those on low incomes. 

But with these programmes all changing and wrapping up, a lot of people are worried about how they’ll manage with their still-high energy bills, especially as the colder months approach. 

One of the biggest changes is undoubtedly the much contested restriction of the Winter Fuel payment which is now being means tested. Means testing, whilst a cost saver that stops unnecessary payments going to people who are financially secure, is a blunt instrument and there will be thousands of vulnerable people who fall through the cracks. 

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One payment that is remaining is the Warm Homes Discount scheme. This takes the form of a one-off £150 payment that comes directly off your bill. It’s typically applied automatically if you are eligible, but if you are currently on a low income in Scotland, you may need to contact your energy provider directly.  

You could also be in line for the Cold Weather Payment if temperatures dip below a certain level for seven days in a row and you are already in receipt of other qualifying benefits. It’s designed to give low-income households extra financial support when it’s particularly chilly, but since it’s weather-dependent, there’s no guarantee.  

Local councils also have discretionary funds available for those in need. The Department for Work and Pensions have a multi-million pound pot set aside called the ‘Household Support Fund’ which was recently extended an extra six month from 1 October to 31 March.

The fund provides money to local authorities to deliver essential help to the most vulnerable people. You can find out how much your area was awarded at GOV.UK and check your council’s website or call their office to find out what support is available to help household bills including, but not limited to, energy bills.  

A lot of energy companies have their own support schemes available if you fall into debt. Whilst it’s not always an easy process to apply, it’s an avenue worth considering. Providers involved include British Gas, EDF, Octopus, Scottish Power and Ovo.  

Whilst it might feel like there are a lot of hoops to jump through to get the help you need to make it through the winter, it is worth knowing exactly what is available for you, and to vulnerable people you know.  

Now is the time to look at your bills and start taking measures to minimise them, whether through home hacks, switching providers, or pursuing grants and relief. If you are struggling and don’t know where to turn, the first step is to talk to your provider – as tempting as it is to hide from the brown envelopes, they will be able to support you and offer you the most immediate help and advice. 

Vix Leyton is a consumer expert and host of the money saving (and spending) podcast ‘False Economy‘  

Photo credits: Pexels

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With the coldest winter months fast approaching, energy bills can quickly become a significant financial burden. 

With smart planning and simple changes, however, you can reduce your energy costs and keep your home warm without breaking the bank. 

Here are some tips to assist you.

1. Insulate your home

Proper insulation is one of the most effective ways to reduce heat loss, keeping your home warmer and reducing the need for constant heating. Consider the following:

Loft insulation: Up to 25% of heat is lost through the roof. Installing or topping up loft insulation can significantly reduce this.

Wall insulation: If your home has cavity walls, insulating them could save a substantial amount on your heating bills.

Draught-proofing: Seal gaps around windows, doors and chimneys to prevent cold air from entering and warm air from escaping. Draught excluders, weather stripping and door sweeps are inexpensive and effective.

2. Upgrade your heating system

Boiler efficiency: If your boiler is more than 10 years old, it might be time to replace it with a more efficient model. Modern condensing boilers are more energy-efficient and could save you hundreds of pounds annually.

Smart thermostats: Install a smart thermostat to control your heating more efficiently. These devices learn your schedule and adjust the temperature accordingly, ensuring you only use energy when you need it.

3. Be smart with heating

Turn down your thermostat: Lowering your thermostat by just 1°C can cut your heating bills by up to 10%. Aim to keep your living room at around 18-21°C and bedrooms slightly cooler at 16-18°C.

Use heating zones: If possible, only heat the rooms you use regularly. Close doors to unused rooms to keep the heat where it’s needed most.

Time your heating: Set your heating to turn on 30 minutes before you wake up and off 30 minutes before you go to bed. This ensures warmth when you need it without wasting energy.

4. Maximise natural heat

Open curtains during the day: Let the sunlight in to naturally warm your home. Close them at dusk to keep the heat in.

Use reflective foil: Place reflective foil behind radiators on exterior walls to bounce heat back into the room, reducing heat loss through the walls.

5. Cut electricity usage

Switch to LED bulbs: LED bulbs use up to 80% less energy than traditional incandescent bulbs and last much longer.

Unplug stand-by devices: Devices left on standby can account for up to 10% of your energy bill. Unplug electronics or use a smart power strip to turn them off completely.

Use energy-efficient appliances: If you’re replacing appliances, choose ones with a high energy efficiency rating. They may cost a bit more up-front, but will save money in the long run.

6. Consider renewable energy options

Solar panels: Although the initial investment can be high, solar panels (as discussed in this article) can significantly reduce your energy bills over time. The government offers financial incentives for renewable energy installations, which can help offset the cost.

Government grants: Check if you qualify for government grants or schemes like the Energy Company Obligation (ECO) to help cover the cost of energy-efficient improvements.

7. Monitor and compare energy prices

Switch energy providers: Regularly compare energy providers to ensure you’re on the best tariff. Websites like Uswitch or MoneySuperMarket make it easy to compare deals.

Smart meters: If you don’t already have one, consider getting a smart meter. It provides real-time data on your energy usage, helping you identify opportunities to cut back.

Off-peak tariffs: Some energy companies (e.g. Octopus Energy) – offer cheap off-peak tariffs. These can deliver substantial savings if deployed correctly. Typically overnight rates are much cheaper – so if you run appliances such as washing machines at these times you may be able to cut energy bills substantially. If you have a home storage battery you can charge it at off-peak rates for use at other times when electricity is more expensive.

8. Develop energy-saving habits

Wash clothes at lower temperatures: Washing at 30°C instead of 40°C can save energy and money. Only run the washing machine with full loads.

Avoid using tumble driers as they consume a lot of electricity. Hang clothes outside to dry or use an airer.

Avoid overfilling the kettle: Only boil the amount of water you need. Overfilling wastes energy.

Shorten showers: Reducing your shower time by just a minute can save money on both your water and energy bills, especially if you have an electric shower.

9. Seek financial help if needed

If you’re struggling to pay your energy bills, you may be eligible for assistance:

Warm Home Discount: This is a one-off discount on your electricity bill, usually given between October and March. You’re eligible if you get the guarantee credit element of pension credit or you have a low income and high energy costs. For more details, visit the Warm Home Discount information page.

Winter Fuel Payment: If you were born before 23 September 1958, you could get £200 or £300 to help pay your heating bills. But as from this year (2024/25), only those on pension credit or certain other benefits will be eligible. Visit this government website for more info.

Cold Weather Payment: You may get a payment if the average temperature in your area is recorded as, or forecast to be, 0°C or below for seven consecutive days. Again, only those receiving certain benefits are eligible. See this web page for more info.

Help from the Household Support Fund: This is money provided to councils by the government to assist pensioners and others on very low incomes. You will need to contact your local council to check if you are eligible.

10. Plan ahead

Finally, start thinking about next winter as soon as possible. Energy-saving home improvements made during the spring and summer can help spread the cost and ensure your home is ready for the next cold season.

By taking the steps above, you can keep your home warm and cosy this winter without seeing a dramatic increase in energy bills. Small changes can make a big difference in energy efficiency and financial savings.

As always, if you have any comments or questions about this article, please do leave them below.Nick Daws writes for Pounds and Sense, a UK personal finance blog aimed especially (though not exclusively) at over-fifties.

Photo credits: Pexels

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Eight months on from the birth of our son, we have had nasty bill hike surprises as our household providers hike our direct debits.

The problem stems from the way in which our bills, primarily for energy and water, are collected. It has led, in quick succession, to a savage bill hike blitz that could have added £120 a month to our bills.

But instead of just taking it, I fought our providers and won back more than £500 a year.

The bill hike problem

Our energy and water bills are both metered. We have an energy smart meter so I don’t have to provide readings, and our water meter is checked every six months by our water company.

Now, our son was born at the end of October 2024, and it would be safe to say our usage of both services has increased.

We use the washing machine and tumble dryer more. We had the heating on more than usual to keep our house warmer for him in Winter. There are other things but these are probably the main additional drains on our usage.

Between water, gas and electric our usage has increased by roughly around 10% for each. This, when you track it in our bill statements, is pretty well immediately noticeable.

But here’s the problem: our providers don’t pay any attention to usage changes in the short term. They just hike their direct debit levels when you accrue an accidental deficit.

This meant that from October, our usage increased, but our direct debits did not.

Eight months on and the disparity in usage against what we were paying each month has enough of an affect that our water bill had a more than £200 discrepancy, while our energy stood closer to £500 in deficit.

I will admit at this point, I did not pay enough attention to the deficits on each as they rose, but the effect was incremental over months.

More from Edmund Greaves on Mouthy Money

Provider shenanigans

This came to a head all at once in the past few weeks. First water, then energy provider both got in touch with me to say our direct debits weren’t covering our usage.

For water, we were paying £50 a month. The provider now wanted £100 a month from us to cover the deficit.

Our energy provider was taking £130 a month from us, but it wanted £200 a month going forward.

This would have meant £120 a month in higher bills, something our budget would struggle to meet considering my partner Ellyn is still on maternity leave.

So I hit the phones to fight our corner.

In both cases I did some sums to figure out:

A. How much our monthly usage should cost, based on our consumption.

B. How much extra it would take, over 12 months, to pay our deficits back to £0.

For our water bill, this meant paying an extra £20 month. For energy, it would be £35. This versus attempted increases of £50 and £70 respectively (almost, suspiciously, as if both had just decided to more than double the difference).

The water company was more straightforward. We agreed to pay £70 a month, which over 12 months will bring us back to £0 deficit.

The energy company was more tricky, because you have to factor in the energy price cap. With the cap coming down in July, the level they had set our new bills at would have meant paying £2,400 a year, a mad amount.

In their own estimates we were going to use £1,672 (before the price cap decrease) in gas and electric or £139 a month, only a small amount more than our actual bill. With the price cap decrease – 8% reduction for electricity and 9% for gas – I reasoned that £1,522 a year would be likelier – or around £127 a month.

In order to beat our £500 deficit, I calculated that £165 a month would do it over 12 months with the above figures in mind.

This is what I reasoned to the (perfectly affable) call centre attendant on the phone. She accepted my calculations and the bill was duly adjusted.

And that was that, really.

As is the case with so many household service providers, from energy to insurance, the most important thing we can all do as customers is to stand our ground and push for a better deal.

This is increasingly difficult in markets such as energy, but there is still room to push back when companies try and take more of our money without actually improving their service levels.

Ultimately our bills have gone up, and I will now try and focus on how we reduce consumption, but we’re £55 a month worse off, not £120 thanks to a bit of calculation and effort. This means £540 a year in extra bill savings.

A win is a win these days, so I’ll take any day.

Photo by Mikhail Nilov

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Today I’m looking at solar PV (photovoltaic) panels. As you probably know, these panels generate electricity from sunlight. Growing numbers of homeowners (me included) have them on their roofs.

At one time solar PV panels came with generous payment tariffs known as FiTs (feed-in tariffs), but those days are long gone now. 

In this article I will be discussing what incentives exist today for installing panels and whether the sums still add up. I’ll also look at the other pros and cons of installing solar panels. 

The history

The UK has been at the forefront in promoting renewable energy, and solar power has been a key part of this.

The Feed-in Tariff (FiT), launched April 2010, paid home-owners an initially quite generous rate of around 46p per kWh (kiloWatt hour) of electricity their panels generated. This was known as the Generation Tariff. There were also additional Export Tariff payments of around 3p per kWh for surplus electricity exported back to the Grid.

FiT payments were soon reduced for new installations, though existing owners continued to receive the same rate for the duration of their contract (20 years in most cases or 25 years if your system was installed before 1st August 2012). The payments were also increased every year in line with inflation.

My late partner and I were fortunate to have our panels installed just before the rates were (first) cut. As a matter of interest, I now receive about £1,500 a year in tax-free FiT payments.

The FiT scheme was finally closed to new applicants on 31 March 2019, by which time the rate paid for new solar PV installations had been reduced to a paltry 4.01p per kWh.

New financial incentive

In January 2020 the Smart Export Guarantee (SEG) was introduced. 

The SEG is not a direct government subsidy. Instead, it requires all large energy suppliers with at least 150,000 customers to pay for renewable electricity exported to the grid by households. Unlike the FiT, with the SEG you don’t get paid anything for energy you use yourself.

Rates paid under the SEG vary considerably, from as little as 1p per kWh to 20p or more in a few cases (the highest rates tend to be variable).

The Energy Saving Trust estimates that a typical household in the middle of the country could make between £100 and £145 a year from the SEG, based on a rate of 5.5p per kWh (though, of course, the higher the rate paid, the more money you will make).

Other financial considerations

As you can see, the direct incentives to install solar panels have reduced considerably since the FiT scheme was introduced in 2010. It‘s not all bad news, though. 

For one thing, the price of solar panels has fallen steadily. When we purchased ours in 2011, we paid about £14,000. The Energy Saving Trust says that the price of a typical solar panel installation today is around £7,000, so half of what we paid.

In addition, the price of electricity has of course shot up, which means the savings you can make by generating your own have increased as well. 

The Energy Saving Trust estimates that at current prices (price cap to 31 March 2024) households could save on average £276 on their electricity bills. Add in the average £124 SEG payments and that makes £400 a year.

If your installation cost £7,000, that means it will take almost 18 years to pay off the cost of installation and be in profit. Of course, if electricity prices carry on rising, the pay-back period will be reduced.

On the other hand, any maintenance and cleaning costs (see below) will extend the pay-back period.

Additional benefits to solar panels

There are other benefits to installing solar PV besides the purely financial ones. 

One is energy independence: Solar panel owners enjoy a degree of independence from the Grid, which may be particularly valuable during power-cuts.

As the UK switches to an economy increasingly dependent on electricity, such events may well become more frequent. Of course, to get the full benefit from this you will also need home storage batteries (to be discussed in a future article).

Another consideration of great importance to some is the environmental benefit. Solar energy is a clean and renewable source, producing electricity without emitting any greenhouse gases. Solar panels can therefore be seen as contributing to the fight against pollution and climate change.

Though it must also be said that the manufacture of solar panels requires large amounts of water and other natural resources, causes greenhouse gas emissions and produces toxic waste. They are also difficult to recycle and may end up in landfill at the end of their useful life.

Other considerations

There are a few other things to take into account before getting solar panels.

Up-front costs – While the cost of panels has decreased, the initial investment can still be substantial. It’s important to carefully consider your budget and explore the financing options and any available grants or loans. Clearly if you have to borrow to install panels, any interest charges will reduce the financial benefits from them.

Roof orientation and space – The efficiency of solar panels depends on the orientation and angle of the roof. South-facing roofs with minimal shading provide optimal conditions for solar energy generation. If you don’t have such a roof all is not lost, however. My house faces east-west, so we had a ‘split array’ installed with half the panels on the east-facing side and half on the west-.

Your lifestyle and energy usage – The amount you save in practice will depend on how often you’re home, how much electricity you use, and when you use it. The Energy Saving Trust estimates that at current rates annual savings will amount to between £165 and £405, with an average of £276 (as stated above). 

Maintenance – Solar panels should not require any regular maintenance. The one exception is the inverter, which converts the DC power produced by the panels to the higher-voltage AC used in UK homes. This will likely have to be replaced at least once during the typical 25-year life of the panels at a cost of £500 to £1,500. 

Cleaning – It’s also important to ensure your panels are kept clean, as if they get dirty (e.g. from bird droppings, a problem where I live) their efficiency will be reduced. Personally I have my panels professionally cleaned every two to three years at a cost of around £150.

Decline in efficiency over time – Solar panels gradually decline in efficiency, a process known as degradation. This typically occurs at a rate of 0.5% to 1.0% a year; so after 25 years your panels will likely only generate about 80% of the power they did when first installed. There is nothing much you can do about this, though regular cleaning (as mentioned) will help maximize output.

Final thoughts

So is it still worth having solar panels installed? As you can see, it’s quite a complex question, with various considerations to take into account.

In purely financial terms, it’s likely to be at least 15 years before the costs are covered – so if you are planning to move in the next ten years or so, you might want to think carefully before proceeding.

On the other hand, if you have the money available and like the idea of cutting your energy bills and (possibly) helping save the planet, solar PV panels may be worth considering. And, as mentioned above, they will also give you a degree of energy independence. The latter may prove increasingly valuable according to how the government’s quest to achieve Net Zero plays out.

As always, if you have any comments about this article, please do leave them below.

Photo credits: Pexels

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In Britain we’re lucky to have high-quality running water on tap whenever we need it. LIke everything else in life it costs money, however. And in these times of rising prices and squeezed incomes, those costs can be a growing burden. So in this article I’ll be setting out some ways you may be able to reduce your water bills.

The first thing to say is that water pricing varies across the nations of the UK. In England and Wales, unless you have a water meter, the price you pay will depend on the rateable value of your home. 

In Scotland, again unless you have a meter, you will pay a standard water charge with your council tax. 

Domestic customers in Northern Ireland are fortunate in that they aren’t required to pay a water bill at all (though this may change in future, with a range of options for introducing household water charges in NI having recently been put out to public consultation).

Should You Get a Water Meter?

The average water bill for unmetered customers is currently around £450 a year.

If you’re on a low income, that can represent a significant chunk of your money. And unlike gas and electricity, you can’t just shop around for a better deal with a different supplier. You may, though, be able to make significant savings by having a water meter installed.

With a meter, you are of course charged according to how much water you use. A good rule of thumb here is that if your house has more bedrooms than occupants or the same number, it is definitely worth looking into getting a meter installed.

Of course, people vary considerably in how much water they use. So you can use  this free online calculator from the Consumer Council for Water to check whether you are likely to save money with a meter. It asks a series of questions about your home and your water usage and reveals the estimated cost you would pay if you had a meter. You can then compare this with what you are paying currently.

The good news is that in England and Wales (though not Scotland) water companies will normally install a water meter free of charge if requested. Even better, they will usually let you switch back to unmetered within 12 or even 24 months if you find you are paying more with a meter than you were before. You should check with your water company to find out their policy about this.

• If your water company can’t fit a meter for some reason, you can ask for an ‘assessed charge bill’. This is calculated based on the size of your home and how many people live there. If it comes to more than you’re currently paying you can stick with your present billing method, so there is nothing to lose by requesting this.

Saving Money With A Water Meter

Once you have a meter installed, there are lots of ways you can reduce your water usage and save yourself money (and benefit the environment as well!). Here are just a few suggestions…

• Only ever use the washing machine with a full load.

• Have showers rather than baths and keep them reasonably short.

• Do all the washing-up in one go.

• Use a dishwasher, or at least a washing-up bowl.

• Turn off the tap while brushing your teeth.

• Don’t use the toilet as a waste bin for paper tissues, etc.

• Fix dripping taps and any other leaks as soon as possible.

Finally, most water companies have a range of gadgets to help save water they will send you for free. Give them a call or check on their website to find out what’s available.

Other Ways to Cut Your Water Bills

If you are on a low income, all the water companies have schemes designed to help you. These vary a lot and you will need to check with your water company what they offer. 

Anglian Water, for example, have what they call LITE and Extra LITE tariffs for people with low disposable incomes who struggle to pay their water bills. You’ll need to have a meter fitted to qualify for this, but they say you could get a discount of up to 50% on your water and sewerage charges by switching to one of these tariffs.

I hope this advice will help you reduce your bills and keep your finances above water in the months ahead!

Nick Daws writes for Pounds and Sense, a UK personal finance blog aimed especially (though not exclusively) at over-fifties.

Photo by RODNAE Productions from Pexels

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I’ve always wanted a “proper” pet (not another fish!) for years but have been putting it off for various reasons: “I don’t have time to look after it”, “what about when I go on holiday”, etc.

So after years of umming and ahh-ing, I finally took the plunge and adopted a cat from Battersea Dogs & Cats Home. But something I didn’t give as much thought to as I should have was the cost.

I’ve heard stories about ridiculous vet bills, but, around 60% of adults own a pet. So, in the back of mind, I always thought it surely couldn’t be THAT expensive… could it?

In the past, maybe not. But the cost of vet services has risen so much recently that the Competition and Markets Authority (CMA) has launched a review into the sector.

Rising prices are also pushing up insurance premiums, meaning many owners can’t get affordable cover.

There are several reasons vet fees are surging, including the wider cost-of living-crisis and a lack of qualified vets.

But, as usual, greedy private equity consolidators also appear to be playing a major part.

In 2013, 89% of all vet practices were independent. By 2021, this had fallen to just 45% according to the CMA.

This is creating regional monopolies, leaving desperate owners with no choice but to pay higher prices.

Consolidators are also taking over specialist clinics, encouraging referrals within the group over independent recommendations.

In this race for profit, vets have eroded what once separated them from most other professions – trust. You can no longer tell whether you’re getting the best advice for your animal, or whether they’re just trying to squeeze as much money out of devoted owners as possible along the way.

I got my first taste of this when I tried to book in my cat’s second vaccination.

Battersea had already given the first dose and said I just needed to get the final one as soon as possible, as if that would be so simple.

I rang at least six local vet practices, but, lo and behold, not one of them had the same type of vaccine as the shelter in stock. I would have to start an entirely new course from scratch, they said – with the full price tag to match.

I have pet insurance, but vaccinations aren’t usually covered.

When I went back and asked the shelter where I might find a second vaccine, a volunteer confessed supply is generally short and most vets stock different treatments to them, so I probably would have to start a new course. Funny that.

I then asked the charity, followed by two veterinary practices whether you can “over-vaccinate” a cat. The shelter said yes; both vets said no.

The variation in prices from practice to practice was also astonishing. One vet quoted me £120 for two doses, while the one I went with 15 minutes away cost £75 for the same jabs.

Litany of stories

The Money Mole heard the story of one reader’s 14-year-old golden retriever. Her vet recently recommended a series of invasive – and very expensive – operations she could have to ease the arthritis in her legs.

The reader said no, and the vet didn’t push it – but that’s not the point. Is it really right to suggest putting a 14-year-old dog through that much stress and painful recovery to potentially extend her life by months, at most?

Would vets have recommended that in the past?

The anecdotal rip offs don’t end there. Mouthy Money editor Edmund Greaves recounted his experiences when his Labrador developed itchy ears.

One vet appointment and £120 later he was given ear wash and drops for the dog. But a cursory google found the same medications online for less than £30. With the cost of the appointment running at £60 the vet was marking up the price by DOUBLE compared to online.

The cost of something like this comes under the excess of an insurance policy, making claiming a futile exercise. Instead vets, pushed by profit-driven backers, are taking advantage of our love for our four-legged friends to earn cold hard cash.

I’ve already started researching exactly what my cat needs, as I can’t be certain my vet won’t suggest some pricey, unnecessary treatment. What a shame we need to be so cynical.

Hopefully the CMA cracks down on this profiteering and we can once again put faith in the profession to really care for our pets rather than viewing them as a cash grab.

Money Mole very much looks forward to the findings of the CMA review, and that fairness is restored to the pet health market soon.

Have you been affected by absurd vet prices? Let us know in the comments below.

Photo by Tima Miroshnichenko

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From households struggling with mortgage payments, to shoplifting being on the rise, and millions using credit to pay basic bills – here are our favourite must know money stories this week to help you get your head around your personal finances. 

‘Mortgage help’ Google searches skyrocket 1,366% 

‘Mortgage help’ Google searches skyrocketed by 1,366% in the past month, according to analysis by mortgage broker L&C Mortgages.

Following numerous base rate hikes from the Bank of England, the term ‘mortgage help’ was searched for at 10 times the normal volume – reflecting financial stress among mortgage holders amidst rising rates.  

Other highly searched terms in the past 30 days included: ‘how to afford mortgage’ (324%), ‘mortgage support’ (213%), and ‘remortgage (106%).  

Increasing fixed-rate mortgage costs are adding financial pressures on the finances of Brits and triggering a surge of uncertainty for both mortgage holders and renters alike.  

A spokesperson from L&C Mortgages said: “There are still plenty of deals available for borrowers looking to switch, but remortgaging a home is a decision that should be made with thorough research and help.” 

If you need to remortgage, speak to a broker and shop around for the best available rates.  If you are struggling for tailored support, speak with your lender before the situation becomes untenable. 

‘The cost of living started my shoplifting’ 

Stealing goods is on the rise, reports Ez Roberts for BBC News as shoplifting incidents in the UK saw a significant 30.9% year-on-year rise as of March this year, pushing shoplifting back up to pre-pandemic levels. 

According to the British Retail Corsortium (BRC), shoplifting cost retailers almost £1bn in 2021-22. Tom Holder from the BRC said: “Only about 5% of shoplifters we catch go to court, so you can’t ask most people why they’re doing it.” 

Roberts investigated this to find out the ‘why’ and received varied answers. 

Some shoplifters believe food should be affordable for all, and one should not have to make the choice between basic necessities and leisure spending at all.

One said: “I only steal things I need but I can’t afford,” while another commented: “If I was earning enough, I’d probably stop.” 

On the other hand, a supermarket manager said little is done about shoplifting and the police aren’t interested – making it easy for people to steal.  

Millions use credit to pay basic bills 

2.3 million low-income UK families have reportedly taken out loans or used credit to pay for basic bills during the cost of living crisis, report Michael Savage and Skyler King for The Guardian.  

According to an analysis by the Joseph Rowntree Foundation (JRF), nearly six million low-income families have unsecured debt – such as credit cards, overdrafts, and personal loans. 

However, the use of credit is not preventing households from falling behind with payments – and families are warned of the ‘debt timebomb.’ Three-quarters report arrears with at least one household bill or lending commitment, with 44% in arrears with three or more bills. 

Rachelle Earwaker, senior economist at JRF, said: “Despite inflation falling back, we risk the tragedy of a second wave in this crisis, as millions of people struggle to maintain their borrowing in view of rising interest rates.  

“The fragility of the current situation ought to be a preoccupation for policymakers everywhere, but on the contrary, it is in danger of being overlooked. While rising mortgage costs dominate the national conversation, the affordability of short-term credit should also be a factor of vital concern.” 

A government spokesperson said: “We know people are struggling with rising prices, which is why we are delivering support worth on average £3,300 per household, uprating benefits in line with inflation and have increased the national living wage.” 

Photo credits: Pexels

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The cost-of-living crisis isn’t going anywhere soon, so it’s as important as ever to take better control of your finances. 

Here are some of our favourite stories this week to help you get your head around your money.

Tenants seek ‘bills included’ homes

Kevin Peachey writes for BBC News as all-inclusive rent searches rise, according to property portal Rightmove.

The phrase ‘bills included’ has jumped to second place in Rightmove search priorities, from fourth a year earlier, reflecting the pressure of surging energy bills and cost of living rises.

Apart from the price and location of property, pets have consistently been one of the top filters for rental properties. Earlier last year, the requirement for a garage rose as people sought extra space as they worked from home.

Now, all-inclusive rents are gaining popularity, as a simple and effective solution to financial uncertainty.

Tim Bannister, property data expert at Rightmove comments: “Any landlord able to offer this to a tenant is likely to be met with a long queue of applicants.”

All-inclusive rents take away the need to deal with utility companies and knowing your fixed rental amounts provides a sense of financial stability. However, it might be difficult to gauge the worth of a bills included property, or negotiate a lower rent if bills fall in the future.

Shoppers to pay £811 more for groceries

On top of increased mortgage payments and record-high rents, along with energy and council tax bills rising in April, consumers are having to deal with rising household grocery bills.

Nicole Garcia Merida writes for Money Week as food inflation rose to 17.1%, the highest ever, in February 2023. Second to rising energy costs, grocery inflation is the most important financial issue for consumers today.

Fraser McKevitt, head of retail and consumer insight at Kantar, a data analytics consultancy, comments: “If people don’t change how they buy their groceries, households are facing an £811 increase to their average annual bill.”

With milk and cheese prices already increased 26.1% and 23.8% respectively, and butter and spreads costing 29.9% more –despite improvement in supply chains issues is yet to reflect in prices.

Plus, while many items have not risen in price, they are experiencing so-called ‘shrinkflation’ – where the price of a product does not change, but the size of the product decreases, leaving shoppers with less for their money.

UK women more likely to be on low pay and struggling

Joanna Partridge reports for The Guardian that more women than men are paid below the real living wage, according to data from the Living Wage Foundation.

Women have been hit harder by the cost-of-living crisis as they already tend to earn less, with 60% of all jobs paying below the real living wage held by women.

Half a million more working women are paid below the real living wage than their male counterparts. 13% of women, are on zero-hour contracts which comes with a lower job security. compared to 9% of men.

Katherine Chapman, director of the Living Wage Foundation, comments that the research “demonstrates the reality that millions of women in the UK – often cleaners, catering staff and care workers – are more likely to be trapped in low-paying, insecure and precarious jobs.”

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Budgets are incredibly useful tools and an important part of our financial health. 

• They help us stay on top of our bills and reduce financial worry
• They ensure we do not spend more than we earn 
• They enable us to allocate money towards financial goals 

When it comes to maintaining a budget within a tough economical time, there are a few things to consider to manage your money successfully. 

Firstly, the budget needs to prioritise your top financial priorities and focus on key areas of your expenses. Secondly, you want to ensure your budget is realistic and is setting you up for success, not to fail.

Thirdly, you want to be aware of your own financial behaviours and find ways to stick to the budget. 

So lets dive into these in more detail…

Your budget helps you prioritise the important expenses

When it comes to managing your money, you want to ensure the important bills are paid first and foremost.

You want to have enough money to cover all of your fixed expenses – all the things you are committed to paying throughout the month.

Fixed expenses are bills that are paid on a set date at a set amount. For example, rent or mortgage, utility bills, phone bill or internet, council tax etc. 

Calculate your income, then minus your fixed expenses, and this leaves you with your disposable income. The remaining money is for you to spend throughout the month on general spending and on your financial goals. 

Prioritising your financial commitments within your budget ensures you stay up to date on payments, and provides a peace of mind helping reduce stress and financial worry. . 

Your budget needs to be realistic 

If you do not have enough to cover everything within your budget, the focus should be on increasing your income or decreasing your outgoings. 

The quickest and easiest place to start is to identify the difference between your needs and your wants and then ask yourself if there are any expenses that you can sacrifice for the short term to ensure that you have enough to live off.

Be really honest with yourself, and know that this does not have to be a permanent change but something that might ease your financial stress right now. 

For example if you are paying for a gym membership that you don’t really use.

Become aware of your own financial behaviours

Having a budget is one half of the job, but sticking to the budget is usually the part where people struggle. 

Our money behaviours are rooted in emotion, so how we feel about ourselves and about money right now will have a huge impact on your ability to stick within a budget 

If you find yourself always overspending or going outside of your budget, become aware of the emotion that drives that decision. 

Are you overspending when you are sad, bored, stressed, or lonely? Can you see any patterns within your spending? 

Become aware of emotional triggers and create coping mechanisms to change your emotional state in the moment that do not include spending money. 

For example instead of going shopping, can you call a friend for a chat, or go for a walk in the park (you will be surprised how moving your body has a huge impact on your mood!) 

These three main points should help you create and maintain a budget during a time where inflation is rising and prices are increasing. And sets you up for financial success in the future because you are improving your money management skills.

Photo by Sincerely Media on Unsplash

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Amidst an uncertain economic environment and the rising cost-of-living, it’s increasingly important to take better control of your finances.

Here are some of our favourite money stories this week to help you get your head around your finances.

Households face biggest water bills rise in decades

Jess Clark writes for The Guardian as household water bills face the biggest rise in almost two decades from April 2023.

The typical water bill will face a hike of 7.5%, increasing to an average of £448 a year. While the increase is less than inflation, one in five customers who are struggling to pay have a ‘tipping point’ of an additional 8p a day.

Water firms will see several future investments, and companies have recently increased the level of support offered by over £200m. However, consumer groups lash back calling it a ‘postcode lottery.’

Emma Clancy, chief executive of the Consumer Council for Water, comments: “Low-income households need immediate relief and the long-term security of knowing their water bill will be affordable.

“It’s not fair that struggling households face a postcode lottery when it comes to getting help with their bill – that’s why we urgently need a new water affordability scheme that provides consistent support based on people’s needs.”

One in five eating food beyond use-by date

Cost-of-living correspondent Kevin Peachey writes for the BBC that many are struggling to keep warm and eating food past use-by-date as prices soar.

The Office for National Statistics (ONS) shows data that nearly one in five adults surveyed said that they ate smaller portions or food beyond its use-by date in the days approaching Christmas.

The Food Standards Agency says that people should: “Never eat food after the use-by date, even if it looks and smells ok, as it could make you very ill”.

Four in five (80%) of those asked were worried about the cost-of-living crisis affecting them, with some also losing sleep over it. 15% were found to be worried that their food would run out before they had money to purchase more.

Cold Winter weather coupled with the soaring costs of energy bills and food prices is continuing to have a significant impact on people’s mental and physical health and wellbeing.

Londoners selling homes on WhatsApp

Damian Shepherd reports for Bloomberg on a booming private property sales market in London, with Londoners selling their homes via WhatsApp.

Under-the-table sales hit record levels with almost 25% of London homes sold off-market in the last quarter of 2022. The trend is predominantly in expensive property sales, allowing the parties to negotiate on their own terms.

Almost a third of homes sold for £1m or more were sold off-market in this period, primarily due to the increased activity at the top of London’s real estate market. A strong dollar has drawn more international buyers to the market.

A Hamptons analyst anticipates that strong off-market sales will continue through 2023. However, high-end properties will still be available in public view on property portals.

Photo by Imani on Unsplash

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