A New Year, a fresh start – if only, you are probably saying to yourself!
Towards the end of 2022, we started staring inflation in the face. A recent article noted that inflation is already in double figures, and it is forecast to reach a high of 13% early in the New Year. Some analysts reckon it could rise even higher.
Meanwhile, domestic staples such as sugar, milk and teabags have soared in price – by 11.6% in October 2022 – and contribute to the steadily rising general cost of living.
As winter draws on, probably the most pressing worry for many households – whether homeowners or tenants – is the cost of keeping the place warm. Despite the government’s energy price guarantee, a story by the BBC on the 24th of November explained that a typical household would be facing bills of an average of £3,000 – and the level of available support would be considerably reduced come next April.
Can you make savings?
Against this bleak outlook, the question on so many lips is whether savings in the domestic budget can be made – whether you own your home, are a buy to let landlord, or are renting your accommodation.
It helps no one if you are paying over the odds for the energy you need to consume to keep your home warm. For homeowners and tenants, the savings are obvious and for landlords, any cost-efficiencies in the use of energy will be welcomed by grateful tenants more likely to treat your property with the respect it deserves.
The following are some of the ways you might check whether your energy bills are currently realistic:
Your supplier and the tariff
- homeowners and landlords might want to check whether switching suppliers could achieve savings – or even whether you can switch to a different tariff from the existing supplier;
- because the energy market is currently in such a state of flux, it might be difficult to find alternatives and you may need to sit it out for a while longer until the situation becomes clearer;
Benefits and grants
Citizens Advice stresses the importance of both homeowners and tenants checking whether you are eligible for the benefits or grants that may be available if you:
- have no income or receive only a low income;
- have a disability;
- receive a State Pension or over the age for which you qualify for such a pension; or
- if you are in arrears with payments to your current energy supplier.
Citizens Advice also offers a handy ready reckoner to check your eligibility.
Energy consumption
- every household is likely to be different, of course, in the amount of energy it consumes in the normal course of events – but, in most cases, even minor changes to habits and use of energy can lead to significant savings;
- restrict the energy you use on heavy consumers such as washing machines and dryers, for example, by reducing the temperature at which you wash your clothes and by hanging the finished articles outside to dry on those often rare, sunny days;
- make sure the fridge remains set to the correct temperature – between 3º and 5º – and remember to defrost it regularly;
- simple measures such as closing interior doors, using draught excluders, and closing curtains can also help to reduce your consumption of energy;
Energy efficiency
- homeowners and landlords will have received a copy of the property’s Energy Performance Certificate (EPC) if they bought it after August 2007 and any tenancy granted after October 2008 must also provide tenants with a copy of the latest EPC;
- energy efficiency – especially within the private rented sector – has become a hot topic recently and although improvements require a degree of investment, the savings can be substantial.
Water and sewerage
According to the website Statista, the average British household will have paid £419 for the annual combined water and waste disposal or sewerage bill by the end of the financial year to the end of March 2023.
Being careful about the volume of water you consume will not only save you money but also help you and your family to live more sustainably.
It is estimated that an average household of just four people will use around 600 litres of water every day. Yet there are simple ways to reduce this volume, such as ensuring that you have no leaks through faulty pipes or fittings such as the toilet, hand basins, and sinks. Consider using a cistern displacement device (CDD) to reduce the amount of water you flush each time the toilet is used. And always keep handy the telephone number for your local plumber – so that any emergency is dealt with promptly.
Summary
Getting ready for 2023 almost inevitably involves getting ready for some tough household budgeting.
By paying careful attention to the utilities you use – electricity, gas, and water – you might make helpful inroads into your ever-escalating household bills.
