UK inflation has hit its highest level since March, driven by a surge in petrol prices last month, according to the latest official figures. The Office for National Statistics (ONS) revealed that Consumer Prices Index (CPI) inflation climbed to 2.6 per cent in November, up from 2.3 per cent in October.
The rate of CPI inflation for food and non-alcoholic drinks, alcohol and tobacco, clothing and footwear, recreation and culture all saw slight increases over the year to November, compared with the year to October. These new figures are significant for anyone spending money this festive season as it means the cost of living crisis will continue to erode household budgets into the new year.
In addition to the rise in inflation, energy bills are also set to increase slightly from New Year’s Day. Households on the standard tariff, with typical average usage, will see their bills rise from £1,717 to £1,738 from January 1 – an increase of £21 over the coming year (£1.75 per month).
However, if you’re worried about managing your bills and eager to start reducing your outgoing costs and make some savings before the new year, there are several ways to alleviate the pressure. While the savings – if you can implement all 10 of these cost-cutting tips – could be substantial, the reality is that you only need to achieve one or two things on the list below to start improving your personal finances, reports the Daily Record.
10 ways to cut costs and save money this winter
1. Make small changes to your routine
Simple ways to save money start at home. According to Smart Energy GB, taking a short shower instead of a bath could potentially save around 70 litres of water each time.
Washing clothes at 30 degrees could also help save on electricity and turning off standby appliances before going to work, at night and when generally not in use could help.
2. Ensure your boiler is efficient
Having a boiler serviced will help to minimise energy bills by helping it to run more efficiently and reducing the risk of a future breakdown, according to gas registration body the Gas Safe Register.
Although money may be tight, it’s vital to make sure gas appliances are safe. Warning signs include lazy yellow flames, pilot lights that keep going out, black marks or stains on or around gas appliances and increased condensation inside windows, according to the Gas Safe Register.
3. Grants and benefits
Some people could be entitled to financial support during the colder months including:
- £150 Warm Home Discount – for those on a low income on certain benefits
- £25 Cold Weather Payment (not Scotland) – £25 for every 7-day period of freezing temperatures
- Winter Fuel Payments (up to £300) – for pensioners on means-tested benefits
- £58.75 Winter Heating Payments – for low income Scottish households
- £251.50 Child Winter Heating Payment – young people under 19 on higher rate disability benefits
4. Other bills you could cut
Take stock during the festive fortnight to look at all your outgoings and make sure you’re paying for products and services you actually use. If you have multiple streaming subscriptions, make sure you’re getting value for your money and ditch the ones you rarely watch.
5. Cut commuting costs
Whether you’re adopting a hybrid work model or are back in the office full-time, keep an eye out for seasonal deals on travel cards. Investing in travel discount cards could save you up to a third on train tickets.
6. Save on food
Creating a shopping list can help you stay focused and potentially reduce your spending. Visiting your local supermarket when they’re likely to be reducing prices could also help keep costs down.
At this time of year, supermarkets often overstock on seasonal items to avoid running out, leading to plenty of bargains. The price of vegetables has been reduced to as little as 8p, so it’s worth stocking up – with proper storage, they can last well beyond Christmas.
7. Potentially cheaper mortgage deal
For many, their mortgage is their largest regular expense. Even those who believe they may struggle to switch should consider checking.
The Intermediary Mortgage Lenders Association (IMLA) states that many providers are willing to lend to applicants with ‘non-standard’ financial circumstances. IMLA research found that 88% of mortgage providers would accept applications from self-employed borrowers, and 71% would consider those with irregular incomes.
In light of the disruption caused by the coronavirus pandemic, 16% of lenders have reduced the periods for which self-employed borrowers need to show earnings records.
8. Organise your savings
If you have any spare cash, ensure it’s accruing some interest. If it’s not generating at least 5 per cent currently, transfer it to a better deal.
Utilise a comparison website to find the one that suits your savings needs.
9. Be patient when Christmas shopping
With just a week left until Christmas, and many people likely to receive their December salary early, resist the temptation to overspend and panic purchase last-minute gifts for family, friends, neighbours or colleagues. An early salary in December means a longer wait until the next one in January, so monitor your expenditures.
10. Reserve Christmas train travel tickets ahead of time to save money
Trainline suggests that booking your ticket in advance this Christmas could result in a 61 per cent saving on the fare.
Book early to secure the best deal.