Credit Crunch

Reducing your home energy usage and food bills

We’re all feeling the effects of the credit crunch and all the subsequent effects to our family finances. In addition to food prices spiralling ever upwards, electricity, gas and petrol prices – which are 19% higher than last year – can put a big dent in the family finances. Consequently, 7 out of 10 British households are cutting their spending and millions are dipping into their savings to make ends meet.

1 in 5 households are reducing or canceling their pension contributions as well as stopping deposits into their savings accounts, according to a recent survey by the insurance specialists Axa. They also found that almost 1 in 7 of the more wealthy British households are now having to take second jobs – or the ‘non-working’ members of the household are now working – in order to maintain their lifestyle.

So, what can we do to reduce our outgoings? We can all take steps to reduce our spending in a variety of ways, from the little things like buying retailer’s own brand goods instead of branded varieties, to reducing our spending on home energy and fuel. One of most household’s biggest expenditure is on home energy and the bad new is that British Gas have warned that yet more price increases are on the way due to an increase in wholesale fuel prices. Some commentators are warning that this rise could be as high as 46% in the coming months.

One of the easiest ways to save on your home energy costs is to ensure that your supplier is the cheapest you can get. Visit www.uswitch.com or www.energywatch.org.uk to find out if you can switch to a cheaper supplier. Just by doing this, you could conceivably save around £200 per year. While you’re at it, you can visit numerous sites for tips on how to minimise your fuel usage at home. Try visiting www.energysavingtrust.org.uk and you could potentially save a further £250 by taking some of the steps they suggest to use less home energy.

Food prices have hit many of us hard and with this years average rise of 19% on last year, the average family is forking out an extra £1000 a year on food. As with your energy, you can find cheaper places to shop by visiting www.mysupermarket.com. In addition, many people find that despite the fact most stores charge a delivery fee, grocery shopping online is a cheaper alternative because you aren’t tempted to put unnecessary items in your trolley. You know the kind of thing; you see a pack of biscuits on offer and although you don’t need them, they’re on offer and you just fancy them… so in they go! Making a list and sticking to it religiously online means you won’t stack up your bill with impulse buys.