Energy bills are increasing, but there are ways to reduce your outgoings

Ofgem, the energy regulator, has announced that energy prices will increase to their highest ever amount from April 1^st.

On average, households are likely to see an increase of £650.00 in their gas and electricity bills for the year.

The rise in energy costs, alongside increases to National Insurance, council tax, and food bills is likely to put a strain on almost everyone’s finances. However, the government is offering support, and there are other things you can do to ease the burden on your pocket.

Government assistance

Millions of households will receive a total of £350 from the government over the next year to help with rising living costs. The pay-out will be split between:

A loan of £200 will be available for all households in the UK to put towards their energy bills. The loan will be deducted directly from your bills and you have to pay it back from 2023 when global wholesale gas prices are expected to come down. (If you're using a pre-payment meter your supplier will give you a credit through your smart meter or a voucher or a cheque.)
A £150 council tax rebate, in April, to all households in England in council tax bands A to D. This will not need to be paid back. For those who don't pay their council tax by direct debit, local authorities have been instructed to ask bill-payers for their bank account details so they can receive the £150 support.

If you do not pay council tax, you may be eligible for support from a separate £144 million of discretionary funding the government is giving to councils to support people on low incomes. Please contact your council to find out how to apply.

You can check your council tax band if you’re unsure what band you’re in.

Warm Home Discount

If you don’t receive it already, you could get £150 off your electricity bill under the Warm Home Discount Scheme.

Even though this is not a new initiative, the government recently increased the amount from £140 to £150, meaning if you currently use the scheme, you’ll receive a little more.

You are eligible for the discount if you’re on a low income, but you will need to speak with your supplier first, as they decide who gets the discount. Suppliers only usually give a certain number of discounts per financial year, so you still have time to apply for next year’s discount.

Fuel vouchers & payment plans

Foodbanks that are members of the Fuel Bank Foundation scheme can also offer fuel vouchers that help pay for heating or electricity.

Meanwhile, if you’ve tried to save money by decreasing your gas and electricity use, but are still receiving high bills and are behind with payment, you should contact your supplier. You may be able to negotiate a payment plan.

Citizens Advice provides a range of information on grants available to help pay off your energy debt, how to get extra help from your energy supplier, and local council grants.

Tips to reduce your energy usage

The average home in the UK, with four occupants, uses at least 13 electric appliances, which all consume huge amounts of energy. However, there are a few changes you can make to cut down your energy use and reduce bills:

Get water smart: investing in a more energy-efficient shower head can save you as much as £18 per person a year on energy bills. You can also save around £25 a year by doing your washing up in a bowl rather than using a running tap.
Turn off standby appliances at the wall: you can save an average of £30 a year by keeping your devices off while you’re not using them. Also, make sure all your plugs are switched off before you go to bed.
Do laundry off-peak: Some tarrifs offer cheaper electricity at quieter times, so you could check with your provider to find the optimum time to wash your whites. (Please be considerate of neighbours if you’re thinking of running a washer or dryer during the night.) And if your property has solar panels installed you can reduce your bills by running any electricity hungry appliances during daylight hours.
Save energy with LEDs: Light Emitting Diode bulbs are a great way to reduce your home’s energy costs as they use less energy than regular light bulbs. Each bulb has a bayonet fitting and lasts 10 times longer than a regular incandescent bulb.
Saving while cooking: Cooking your favourite meals in an energy-efficient way is a great and easy way to save on your bills and your time. Always use a lid on pans, fill up the oven and cook two meals together, and turn off the oven ten minutes before you’re done. Provided you don’t open the door, the heat left in the oven will finish your cooking for free.
Switch energy supplier: While people can use comparison websites such as Which? Switch, Compare the market or Money Supermarket to compare energy tariffs to find another supplier, note that MoneySavingExpert’s Martin Lewis has advised that, right now, it may not be worth it.