Coping with the Cost of Living: Offsetting the Upcoming Increases in Household Bills

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Offsetting the Upcoming Increases in Household Bills

An increase in the cost of energy, water and council tax in April could mean a typical household will pay around £270 more for their utilities. As the rise in essential living costs continues to exceed inflation, more people are looking for ways in which to offset the rise in common household bills.

Switching to a fixed tariff could instantly help to cut gas and electricity bills while ensuring appliances are well maintained saves money in the longer term.

Installing a water meter may lead to lower bills for some households but for anyone struggling with their bills, most major utility companies offer help in reducing or spreading the cost of utilities. Checking eligibility for benefits could also unlock reduced tariffs and a cost of living payment to help with day to day expenses.

How to Offsetting the Increases in Household Bills?

1. Reduce the Cost of Energy Bills

Reduce the Cost of Energy Bills

The price cap for standard variable energy tariffs has already risen by 1% in January and a further increase is predicted for April. In the short-term, switching to a fixed rate can help to protect bill payers from market fluctuations.

As well as struggling with monthly bills, a recent survey revealed that around 25% of householders neglect maintenance issues with their heating systems, procrastination that could potentially cost them over £650 a year.

For longer-term savings, keeping up to date with the maintenance of heating appliances helps to ensure fuel efficiency and avoid the cost of unexpected breakdowns. An annual service can help to extend the lifespan of a boiler and save money in the long run.

2. Save Money with a Water Meter

Save Money with a Water Meter

According to the industry regulator Ofwat, typical household water bills will increase by an average of £86 in April, leaving even more people struggling to cover the costs.

While reduced rates, payment holidays and debt relief are already helping more than 2 million lower income households with their bills, switching to a water meter could also save some bill payers hundreds of pounds.

In addition, under the WaterSure scheme, the water usage of over 200,000 households in England and Wales who claim income-related benefits could be capped in order to help them pay their water bills.

3. Avoid Overpaying Council TaxAvoid Overpaying Council Tax

Council tax is yet another household expense that is set to outstrip inflation in April. The government has set a limit of 3% on council tax increases but a number of local authorities have asked permission to raise bills by up to 25%.

While reductions of up to 100% are available for households on benefits or with a lower income, up to 400,000 homeowners could save money by ensuring that they are not paying too much for their council tax because their home is registered in the wrong band.

Many people are already struggling to pay household utility bills and the price rises due in April could result in further financial hardship.

Seeking out help from providers, checking eligibility for financial support and ensuring appliances are regularly serviced could help many more people to cope with increasing costs.