The pressure of spiralling living costs is a major concern among many UK households, with the vast majority looking to make significant lifestyle changes in response to price rises.
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According to new research[1], 95% of adults in the UK say they are worried about the anticipated rise in the cost of living in 2022. Women are the most worried, with a third (33%) mentioning they are extremely worried compared to a fifth (22%) of men.<\/p>\n
Cost of living increases<\/strong> The level and speed of price rises means nine out of ten of us (89%) are looking to make changes to pay for the cost of living increases. Worryingly, the option for a fifth (21%) of people is to borrow their way out of trouble, with 7% admitting they simply don\u2019t know how they\u2019ll cover increases and 5% of workers saying they are considering taking out a short-term (payday) loan.<\/p>\n Cut back on costs <\/strong> On top of rising costs, National Insurance contribution rates increased from April, just as energy bills rise more steeply, which will dramatically affect take-home pay. For an individual on a salary of \u00a350,000, that will mean an extra deduction of \u00a3464 a year, or \u00a3214 for someone earning \u00a330,000. Worryingly, a fifth of workers (20%) say they are not aware of these changes, and two-fifths (43%) say whilst they are aware, they are not prepared for the changes to start.<\/p>\n Anxious about finances<\/strong> Household bills are rising steeply, with the cost of filling up the car at the pumps having reached eye-watering levels, leaving families up and down the country worried about their ability to make ends meet. Concern is so widespread that families who, on the face of it, would be considered financially comfortable and even those with six-figure incomes are deeply worried.<\/p>\n 10 ways to help manage your finances<\/strong><\/p>\n 1. Save money on your energy bills<\/strong> Switching your energy supplier used to be a good way of saving money on your household bills, but with energy prices soaring, you\u2019re probably better off staying on the standard tariff with your existing supplier once your fixed tariff comes to an end. Some suppliers aren\u2019t taking on new customers, and that way you\u2019re protected by the energy price cap. The government-backed website \u2013 Simple Energy Advice \u2013 has tips on how to keep your energy bills down.<\/p>\n 2. Save money on petrol<\/strong> 3. Food bills<\/strong> 4. Water bills<\/strong> 5. Council Tax<\/strong> If you\u2019re on a low income or certain benefits you may be able to get a Council Tax Reduction. Your bill could be reduced by up to 100%. There\u2019s a different scheme in Northern Ireland.<\/p>\n 6. Check if you\u2019re entitled to state benefits<\/strong> 7. Find out where your money\u2019s going<\/strong> Review your last three bank statements and credit card bills (or check online) and spend some time going through them, highlighting any areas where you think you\u2019re spending money unnecessarily or spending too much. This could be on anything from a top of the range broadband package that you don\u2019t need, to a mobile phone contract where you\u2019re paying for data you don\u2019t use.<\/p>\n Every month money is wasted on unused subscriptions, with the most common wasted money on gym memberships. A fifth (19%) of UK adults said they planned on cancelling TV subscriptions (e.g. Netflix, Amazon Prime). Even magazine subscriptions of a few pounds a month are money down the drain if you don\u2019t have time to read the magazine. Take a few minutes and cancel any subscriptions you don\u2019t really use to save yourself a bit of cash.<\/p>\n 8. Draw up a budget<\/strong> 9. See if you can pay less interest<\/strong> These cards aren\u2019t right for everyone, and it\u2019s important to make sure you can pay off your balance by the time the 0% interest deal runs out. It may also affect your credit score, especially if you do it multiple times.<\/p>\n 10. Get help with unmanageable debts<\/strong> Source data: Nine in ten adults make stark spending decisions as anxiety runs high The pressure of spiralling living costs is a major concern among many UK households, with the vast majority looking to make significant lifestyle changes in response to price rises.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-3801","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.attainwealthmanagement.co.uk\/wordpress\/wp-json\/wp\/v2\/posts\/3801","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.attainwealthmanagement.co.uk\/wordpress\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.attainwealthmanagement.co.uk\/wordpress\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.attainwealthmanagement.co.uk\/wordpress\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.attainwealthmanagement.co.uk\/wordpress\/wp-json\/wp\/v2\/comments?post=3801"}],"version-history":[{"count":0,"href":"https:\/\/www.attainwealthmanagement.co.uk\/wordpress\/wp-json\/wp\/v2\/posts\/3801\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.attainwealthmanagement.co.uk\/wordpress\/wp-json\/wp\/v2\/media?parent=3801"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.attainwealthmanagement.co.uk\/wordpress\/wp-json\/wp\/v2\/categories?post=3801"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.attainwealthmanagement.co.uk\/wordpress\/wp-json\/wp\/v2\/tags?post=3801"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nThe expense most UK households are concerned about is the rise in energy bills (92%), with three in ten (29%) being extremely worried about this, followed by food shopping (87%). Cost hikes to phone and internet contracts, which typically increase by the more than the Consumer Price Index (CPI) rate, concerns 84% of UK adults.<\/p>\n
\nTwo-thirds (66%) of people say they will change their food shopping habits, with half of these saying they\u2019ll reduce the amount of food they buy. Other solutions to cut back on costs include reaching for the thermostat and reducing the length of time the central heating is on (46%), turning off the heating in unoccupied rooms (36%) and nearly a fifth (17%) taking the drastic action of turning the heating off altogether. As part of the cutting-back regime, half (48%) of fulltime workers feel they\u2019ll be forced to reduce or stop saving altogether.<\/p>\n
\nJust as families in the UK felt they\u2019d seen the worst of the financial impact of COVID, they\u2019re facing a dramatic rise in their household bills. People are having to make difficult choices in an attempt to reduce the impact of rising energy bills, higher inflation, tax hikes and potential interest rate increases. Understandably, this has made many people anxious about their finances, but it\u2019s also testing their financial resilience.<\/p>\n
\nIf you\u2019re finding it hard to pay your energy bills, contact your provider as they should help you with ways to pay and don\u2019t be afraid to ask for help from a debt advice charity if you\u2019re struggling.<\/p>\n
\nTry using a fuel price checker site to check that you\u2019re always getting your fuel for the cheapest price possible. Other ways to save include: driving at a lower speed and avoiding accelerating and braking quickly if you can; making sure your tyres are at the right pressure; and taking out anything heavy in the car that you don\u2019t need to carry.<\/p>\n
\nGrocery bills can make up a big proportion of your household spending so it makes sense to look for savings. Plan your meals for a week and then write your shopping list \u2013 this will help you avoid buying unnecessary items. Consider changing to a cheaper supermarket or to different brands if you prefer a particular supermarket.<\/p>\n
\nYou can\u2019t switch water suppliers but there are steps you can take to keep your bills down. Check if you\u2019d save money by switching to a water meter. You can use the Consumer Council for Water\u2019s calculator. If you\u2019re on certain benefits and have a large family or someone with a particular medical condition, you may qualify for the WaterSure scheme, which caps water bills. Meanwhile, if you\u2019re on a low income or receiving benefits, check what additional assistance your water company offers.<\/p>\n
\nDepending on your circumstances and who is living with you, you may qualify for a Council Tax discount. For example, you can get a 25% discount if you\u2019re the only adult living in the property. Find out what discounts are offered by your local council at GOV.UK.<\/p>\n
\nBillions of pounds of state benefits go unclaimed each year, and you could be missing out. The national charity Turn2us has a free and confidential benefits calculator on its website (https:\/\/benefits-calculator.turn2us.org.uk\/), which can help you work out which means-tested benefits you\u2019re entitled to. It also has a grant search tool (https:\/\/grants-search.turn2us.org.uk\/) for information on grants you may be able to apply for.<\/p>\n
\nStart by finding out where your money\u2019s being spent. It sounds obvious, but we may not realise exactly how much we\u2019re spending each month \u2013 and what we\u2019re spending it on \u2013 until it\u2019s laid out in front of us.<\/p>\n
\nDrawing up a weekly or monthly budget will help you get your finances under control. It\u2019s just a list of money you have coming in and what you spend and it doesn\u2019t have to take long to set up. There are plenty of templates online to get you started. Alternatively, budgeting apps can also be used to plan what you want to spend and keep track of it.<\/p>\n
\nIf you owe money on an expensive credit card, it may be worth considering whether you can transfer the balance to a credit card charging 0% interest. Although these cards are interest free, you will normally be charged a balance transfer fee of between 1 and 3% of the amount you transfer. Because you won\u2019t be charged interest on your balance, more of your money can go to repay what you owe.<\/p>\n
\nIf you are struggling to pay for the essentials, you are using one credit card to pay off another or your debts are causing you worry, then contact a debt advice charity, such as StepChange. They will be able to give you help with your debts, free of charge.<\/p>\n
\n[1] Royal London commissioned a survey by Opinium between 25 February and 1 March 2022 with a sample of 4,001 nationally representative UK adults.<\/p>\n","protected":false},"excerpt":{"rendered":"