The cost of living is causing money worries for many across the UK, with 44% of Britons struggling to pay food bills and 37% struggling to pay energy bills in the last 3 months. While they won’t get rid of the pressure entirely, our 5 easy ways to cut essential costs may help lighten the load.
1. Make Some Simple Heating Changes
Most of the energy we use at home goes on heating, costing medium-sized UK households (2-3 people) up to £1,757.91 per year (by direct debit). But the good news is, there are a few small changes you can make that will save you some money, such as:
- Turning your thermostat down by just one degree, which could save you 10% on your energy bills.
- Using your boiler’s timer (if it has one) to make sure your heating is off when no one is home helps you save on unnecessary, costly charges.
- If you have a combi boiler (you can check which type of boiler you have here), turning the flow temperature down for the water going to your radiators (60°C is ideal) could save you around £65 per year (based on September 2023 energy prices). If you rent your home, always check with your landlord before making any changes.
- Turning down radiators in less-used rooms could save you £50 a year, and remember to keep your doors shut to help trap the heat!
- From April 2026, the government is taking £150 off the energy bills of eligible, low-income households and pensioners in England, Scotland and Wales via the Warm Home Discount scheme.
Important: 18°C is the minimum room temperature recommended by the government, and older, ill or disabled people may need it to be warmer.
2. Save £100s with a Free Water Meter
It’s hard to cut essential costs when water bills in England and Wales are due to rise by an average of 5% (£33) to £639 per year from 1st of April 2026.
But according to MoneySavingExpert, for people not already on a water meter, if you have more (or the same) number of bedrooms in your home than people, switching could save up to £300 per year.
You can apply for a water meter online through your water provider, which, if you live in England, will be one of the following:
- Anglian Water
- Northumbrian Water
- Severn Trent
- Southern Water
- South West Water
- Thames Water
- United Utilities
- Wessex Water
- Yorkshire Water
If you aren’t eligible for a free water meter, check if an ‘assessed charge bill’ is cheaper for you.
How does a water meter work?
A water meter is a device that measures the amount of water passing from the water network into a property that uses mains water, usually installed just outside the property in a small, covered, underground chamber. Your water provider will check the meter to calculate how much to charge you, which means you pay for what you actually use, instead of the alternative (i.e. a fixed amount each month/year, which may be cheaper if you live in a high-usage household).
3. Review Your Council Tax Band & Available Discounts
More than half of UK households are in the wrong council tax band, which means you could be paying too much and might be due a refund. To get your money back, you’ll need to ask for a review, but you can only challenge your band if you have been paying council tax for less than 6 months, or the Valuation Office Agency (VOA) has changed your band in the last 6 months. A review may also lead to you being put on a higher band, which means you’d be paying more. Learn how to check & challenge your council tax band.
Another important thing to check is the list of available council tax discounts. For example, you may qualify for a reduction of your bill if you:
- Live alone
- Live only with children under 18
- Are on a low-income
- Are a student or you live with students
- Are getting certain benefits (e.g. Jobseekers Allowance, Income Support, Pension Credit or Universal Credit)
- Are disabled or you live with a disabled person and, as a result, need to live in a larger home
- Are severely mentally impaired or you live with someone who is
- Are a care leaver living in certain counties in England and Wales
- Are a member of the armed forces (depending on your circumstances)
- Moved into a care home or hospital
- Are in prison (unless you’re serving a prison sentence for failing to pay council tax)
Apply for a Council Tax Reduction.
4. Insulate Your Water Tank
The Energy Saving Trust reports that covering your water tank with an insulated jacket could save up to £45 per year – more than enough to cover the cost of the jacket (around £18).
Tips:
- The jacket should be at least 80mm thick
- If you already have insulation around your water tank, add some more! Adding an 80mm British Standard jacket to a tank with a 25mm foam built-in can save £40 a year.
5. Buy a Prepayment Certificate for NHS Prescriptions
Finally, did you know you can cut essential costs with your prescriptions too?
At the moment, the average NHS prescription in England is £9.90, but if you need regular prescriptions, you can save money by buying a prepayment certificate on the NHS website. This means you’ll pay a fixed price for either 3 or 12 months, which will cover the cost of all the prescriptions you need in that time.
You can buy a prepayment certificate for unlimited prescriptions for:
- £32.05 for 3 months
- £114.50 for 12 months – you can pay this in 10 monthly instalments of £11.45
Is the Cost of Living Increasing Your Debt?
If the cost of living is pushing you even further into debt, contact Angel Advance today to get free*, confidential debt advice over the phone, via email, through WhatsApp, or in a webchat.
If you prefer, try our free online debt advice tool, which you can complete at any time, day or night. Just fill out your details and our tool will make a monthly budget for you, give you debt advice specific to your situation, and show you which debt solutions you’re eligible for – all in less than 15 minutes.
For more tips on how to cut essential costs, keep up to date with our blog.
*Our advice is free, but if you sign up for a debt solution, a fee will apply for some solutions.
