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‘  

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Q Is it worth taking a term time family holiday with our children as I can’t afford it during the holidays? 

A As a money expert and a mother, I fully understand the financial pressures many families face when planning holidays.  

While prices of travel and accommodation are often significantly lower during term times, it’s important to weigh the potential educational impact and any fines or penalties that might be imposed by the school. 

If you take a term time family holiday without the school’s permission, you can be fined. The fine is typically £80 per parent per child, which increases to £160 if not paid within 21 days. 

What’s more, persistent unauthorised absences can lead to more severe consequences, including prosecution. If found guilty, you could face a fine of up to £2,500, a community order, or even a jail sentence of up to three months. 

Beyond legal implications, consider the potential impact on your child’s education. Missing school for a family holiday can affect their learning and progress, which might have long-term consequences. 

Luckily, there are few additional ways for families to travel without breaking the bank, even when schools have broken up. 

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One way is to use AI to help you find the most affordable trip for your money. 

AI, or Artificial Intelligence, helps computers perform tasks that usually require human intelligence – and using it to plan your vacation is easier than you’d think. 

If you think of AI as a smart assistant – or your own travel agent – you can enter prompts that mean it can analyse historical price data to predict future prices, giving you a heads up on the best deals.

It can also suggest cheaper travel destinations that you might not have considered by considering your local airport, preferences – such as climate, activities, culture and, most importantly, your budget.  

Here is an example of a prompt to type into Chat GPT or whichever AI you prefer. You can tailor the details to meet your preferences:  

“You are my travel agent. Give me five ideas for an August holiday destination. I would like these locations to have temperatures of between 25 and 30 degrees Celsius during August.

“I will be traveling in a group with two children and two adults.  We enjoy things like swimming, beaches, and theme parks. All in, we would like to spend less than £1,500 amount for seven days. Ask me five questions that would help you do a better job of helping me pick a place.” 

Then it should help you by suggesting holidays that suit your requirements.  

Another way to help make travelling more affordably is to bulk up your holiday budget and sign up for a cashback website such as Quidco.com to save money all year round. 

Here, product providers and retailers pay commission when shoppers click on their links. In turn, the cashback website rebates some of this commission to you.  

I recently paid for a weekend getaway in Paris with my daughter with my Quidco earnings and it made a massive impact on the cost of our trip. 

If you are unable to pay for your holiday in one go, a 0% purchase credit card could help you to spread the cost of your holiday interest-free over several months. 

However, you’ll need to make sure your credit limit stretches to your holiday requirements and avoid spending more than you can afford to pay back. Try to clear your balance before the 0% deal ends and interest kicks in. 

Keep in mind you’ll need a good credit score to qualify for the most competitive credit cards. 

When it comes to a term time family holiday, I know many parents feel like we are stuck between a rock and a hard place, but with thoughtful planning and the right resources, you may be able to have the best of both worlds. 

Kara Gammell is an award-winning financial journalist with nearly two decades of experience writing for national newspapers and magazines such as the Daily Telegraph, the Sunday Times, Good Housekeeping, the Metro, the Independent, the Guardian, the Observer, Marie Claire, the Sun, and Cosmopolitan. Kara is the founder of a money-saving blog Your Best Friend’s Guide to Cash, which promises to help you get more bang for your buck, no matter what your budget. Her first book, Your Best Friend’s Guide to Cash: Eight Things Every Woman Needs to Know About Money, was published by Harriman House in 2014. Her latest book, Bargain Hunter: Easy hacks and tips to save money every day will be published by Headline Publishing in January 2025.   

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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.

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We have gone from summer to autumn in the blink of an eye. Shorter nights and cooler temperatures herald the dark months of winter and the extra costs involved in the season. If you are a money-saver, it’s time to prepare for a frugal winter.

Here are some ideas to help you stay warm, healthy and stick to your budget over the winter months.

Keep warm

There are many small actions you can take to insulate your home without a large outlay.

A good starting point is to block draughts around doors with inexpensive draught excluder tape. You can even roll up an old towel or blanket to stop cold air from coming under the door.

If you have single-glazed windows, add a layer of insulation with bubble wrap. Just cut to fit, spray the glass with water and press into place. Thick curtains will also help. Invest in thermal linings and ensure you close curtains as soon as it gets dark.

Keep a pile of throws and blankets around to cosy up with. A heated throw is a super effective way to keep you warm without needing to turn the heating on.

Maintain your boiler to keep it working efficiently. Now is the perfect time to book a boiler service.

The Government announced recently that the Winter Fuel Payment previously received by all pensioners will only be paid to those on certain benefits. Make sure you are getting all the financial help you are due. You can find advice on the AgeUK website, here. 

Build a healthy food store

It’s a good idea to have a good store of non-perishable food at any time of the year, but even more so in the winter.

Having meals that can be put together quickly is a life-saver when you are ill or when weather conditions keep you at home. 

Get into the habit of adding two or three extra items every time you go grocery shopping. There are some ideas on useful foods to keep in your stores in this post. 

Only buy what you like and know you will use, and make sure you keep an eye on use-by dates on items like oats and flour.

More from Shoestring Jane

Batch cook

Batch cooking is another useful habit to help prepare for a frugal winter. Not only does it save time, but money too. Batch cook things like soups, casseroles and sauces, then freeze them into portions to defrost as you need them.

You will save energy preparing meals, you will be less tempted to buy convenience food and takeaways and you can purchase the ingredients in bulk for even more savings.

Get ready for winter illness

The approach of winter means it’s a good time to stock up on cold and flu supplies.

However, they can be expensive! If you go for supermarket or chemist generic items rather than branded products you will save a lot of money. For example, in Asda 16 Lemsip cold and flu capsules will set you back around £6, whilst the generic version costs just £1.45. 

Washable handkerchiefs are more sustainable and cheaper in the long term than multiple boxes of tissues.

If you are vulnerable, consider getting a free flu vaccination.

Other preparations for bad weather

Make sure your outdoor pipes are well-insulated to prevent them from freezing and cracking, causing expensive plumbing bills.

Keep a stash of torches and batteries at hand in case of power cuts. 

If you have a wood burner or open fire, bulk buy logs to get the best deal. In addition, keep an eye on other people’s skips, which are frequently full of wood offcuts. Be sure to ask permission before removing anything, however.

Have Christmas on a budget

Of course, the main winter festival in the UK is Christmas, which can strain household finances.

Ideally, you will have put money aside for celebrations throughout the year, and maybe even have purchased the bulk of your Christmas cards, gifts and wrap in the January sales! However, if you didn’t plan that far ahead, all is not lost.

Make a budget

Write a budget with your likely expenses: gifts, food, travel, parties, etc. Be realistic.

Look at what you can afford and whether you need to cut back. Don’t get into unnecessary debt. If you need to, let friends and family know that you are on a budget and won’t be exchanging gifts this year, or have decided only to do presents for children. 

Alternatively, suggest a family secret Santa, so you only need to buy one present. This has worked brilliantly with my large family, although we still buy individual gifts for the children. 

Have a wardrobe declutter to see what you already own, rather than buying new Christmas outfits. If you need a Christmas jumper, charity shops are always full of them at this time of year. You can also find secondhand Christmas decorations. 

Share the cost

If you plan to host the Christmas meal or buffet, your guests will usually be happy to contribute. Ask someone to bring a starter or some cheese, someone to provide some drinks, or everyone to bring a dish for the buffet.

In my experience, people enjoy being involved and understand the need to share the financial burden.

When you are buying food for Christmas, remember that it is only a couple of days! Only get what you know you will use to avoid wasting food and your cash.

The four-gift rule

Try the four-gift rule with your children: something they want, something they need, something to wear and something to read. 

I didn’t stick strictly to this when my daughters were small, but I didn’t over-indulge them. I needed to stay within my small budget and I am not a fan of buying endless stuff! 

Instead of buying several expensive gifts, I gave them a main present, usually something they had requested, along with several small, inexpensive treats for their stockings, some clothing and, yes, a book or two. 

Just remember, Christmas is supposed to be enjoyable, which it won’t be if you worry about the expense the whole time.

Do you prepare for a frugal winter? What are your top tips?

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As you will doubtless know, the government and energy companies have been promoting heat pumps hard as a means of achieving their Net Zero emissions targets. 

But, as I have noted before on Mouthy Money, while they have their attractions, heat pumps do have significant drawbacks as well, especially for older/smaller properties. They are far from being a one-size-fits-all solution. 

So today I thought I’d take a closer look at an alternative to heat pumps that may be a better choice for some. Electric boilers receive far less publicity than heat pumps; indeed, you may not even have heard of them. But if you’re looking to switch to a heating system that runs on electricity rather than fossil fuels, they do have several advantages.

So what’s the difference?

Both heat pumps and electric boilers use electricity, but apart from that there are major differences between them.

Heat pumps extract heat from external sources like the air, ground or water. They amplify this using an electrically-powered refrigerant cycle, before distributing it within the home to supply heating and hot water. 

Electric boilers are simpler (and therefore generally cheaper) devices. They heat up water directly using electricity. This is then circulated through pipes and radiators to heat the home and supply hot water. Unlike heat pumps, you won’t generally have to fit new pipework and radiators as well.

Pros and cons

Heat pump pros

Energy efficiency – Heat pumps are highly efficient, often achieving efficiency rates of 300-400%. This means they can produce three to four units of heat for every unit of electricity consumed. This efficiency is significantly higher than that of traditional heating systems.

Reduced carbon emissions – By using renewable energy sources, such as air, ground, or water, heat pumps contribute to lower carbon emissions. This may make them a greener choice.

Versatility – Most modern heat pumps can provide both heating and cooling, offering a year-round solution for temperature control. This dual functionality can be particularly beneficial in the variable UK climate.

Government incentives – The UK Government offers financial incentives such as the Renewable Heat Incentive (RHI) to encourage the adoption of heat pumps. These can help offset the initial costs.

Heat pump cons

High initial costs – Even with government grants and incentives, installing a heat pump system can be expensive, with costs ranging from £8,000 to £15,000 or more, depending on the type and complexity.

Installation challenges – Installing a heat pump may require significant modifications to your property, such as extensive groundworks for ground-source heat pumps or adequate outdoor space for air-source units. Also, heat pumps typically operate at lower temperatures than gas or oil central heating, so you may need to install bigger radiators and pipework. Extra home insulation may also be required. Naturally all this costs money and may entail significant disruption.

Performance in cold weather – While modern heat pumps are designed to work in cooler climates, their efficiency is reduced. Performance can be badly impacted during extreme cold spells, potentially necessitating a backup heating system.

Maintenance requirements – Heat pumps require regular maintenance to ensure optimal performance, adding to the long-term costs. 

More from Nick Daws on Mouthy Money

Electric boiler pros

Lower up-front costs – Electric boilers are generally less expensive to purchase and install compared to heat pumps. Installation costs typically range from £1,500 to £2,500.

Ease of Installation – Installation of electric boilers is straightforward. It can often be done in a day as it doesn’t require significant modifications to the property. They can easily replace existing gas or oil boilers.

Space efficiency – Electric boilers are compact and do not require external components, making them ideal for smaller properties with limited inside and/or outside space.

Cheap to maintain – As with other types of boiler (and heat pumps) an annual service is usually recommended. Due to the small number of moving parts, however, the price may be lower. Modern electric boilers are generally very reliable, reducing the cost of repairs and maintenance over the lifetime of the boiler (typically 15-25 years).

Quiet operation – Electric boilers run almost silently, without the noise often associated with heat pumps. This can be an important consideration in noise-sensitive environments.

Electric boiler cons

Higher running costs – Electric boilers are less efficient than heat pumps, with efficiency rates around 99-100%. Despite being efficient, the cost of electricity in the UK is relatively high, which can result in higher running costs. 

• Of course, you can use electricity from renewables such as solar panels and wind turbines (ideally in conjunction with home storage batteries) to help keep running costs down.

Less environmental benefit – While electric boilers produce no on-site emissions, the environmental impact depends on the source of the electricity. If the grid relies heavily on fossil fuels, the overall carbon footprint may be higher compared with more efficient heat pumps (though of course heat pumps draw electricity from the grid as well).

No cooling capability – Unlike heat pumps, electric boilers cannot provide cooling, which may be a drawback for those looking for a year-round temperature-control solution.

How to choose

As you can see, heat pumps and electric boilers both have their attractions and drawbacks, and choosing between them may not be straightforward. Beside the considerations already mentioned, a further factor to bear in mind is your lifestyle.

Electric boilers produce heat and hot water relatively quickly, making them a good choice if you are out and about a lot but want rapid warmth and hot water when you get home. Heat pumps are slower to warm up and may be better suited to those who are around more in the day and want to keep their home at a fairly constant temperature.

Choosing between a heat pump and an electric boiler depends on various factors, including your initial budget, property size and type, long-term cost considerations, and (as mentioned above) your lifestyle.

A note of caution

I do just want to sound a note of caution here about putting all your home heating eggs in one metaphorical basket, especially that of electricity.

As the UK transitions from fossil fuels towards electricity, power cuts are likely to become more frequent and longer, with London and the South-East especially vulnerable. This was recently acknowledged by the National Grid [source].

The growing use of heat pumps and EVs will add to the demand for electricity from a distribution network already struggling to cope. And renewable energy sources such as solar and wind, while they might be more environmentally friendly, produce less electricity when the sun doesn’t shine or the wind doesn’t blow. 

If you’re entirely reliant on electricity for your home heating, this could make you vulnerable in the event of blackouts (especially relevant if there are older people in the house). In my view there is much to be said for having a backup heating source not dependent on electricity to keep your home warm if the mains electricity fails. Of course, this applies equally with regard to heat pumps and electric boilers. 

• I wrote about a wide range of alternative home heating options in this recent Mouthy Money article. A home battery system, as discussed in this recent article, can also reduce your vulnerability in case of power cuts.

Closing thoughts

Summing up, heat pumps can be a good choice for home heating, especially in new-build homes which have been designed around them with good insulation. The added benefit of cooling is also worth bearing in mind. However, the high up-front costs and potential installation complexities should be carefully considered.

Electric boilers offer a more straightforward, cost-effective solution with lower initial costs, making them suitable for properties with space constraints inside and/or out. Though in the longer term their potentially higher running costs might be a concern.

Ultimately, the decision should align with your needs, financial situation and long-term plans and goals. A professional heating engineer can provide tailored advice to help you make the best choice for your home. 

Hopefully by this means you can find a heating solution that will suit your budget, your lifestyle, your priorities, and your property size and character.

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

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

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