Money Saving Guide by uSwitch.com
It is now crunch time for British households as the downturn in the economy, below-inflation pay
rises and the reality of having less money in our pockets begins to hit home. At 3.3%, inflation is now
at its highest level for 11 years and with the Office of National Statistics warning that the price of
food, clothes, petrol and other goods is set to climb faster than most people’s salaries, things could
get a whole lot worse before they get better.
Essential living costs are rising at the fastest rate since records began 22 years ago, which means
families’ disposable incomes are dropping at the fastest rate since the 1970s. Energy bills alone
could potentially account for a crippling £1,327 of a household’s annual budget by the end of 2008 -
an unprecedented 46% rise in just a year.
The reality is we are working harder than ever before, but ending up with less money in our pockets
at the end of every month. However, there are ways to ease the financial burden and beat the price
rises. Households could save up to £1,500 on bills and financial services by following some simple
money saving tips.
1. Minimise outgoings and maximise your income
After mortgage and rent, regular household bills are the next biggest expense. Energy, council tax,
water and phone bills can all be a drain on finances. However, there are ways to save money on all
of these so it’s well worth following some simple money saving tips to help you work out what you
can save and where.
Since competition was introduced to the energy market, consumers have been free to choose which
company supplies the energy to their home. However, just half of all households have ever switched
supplier and only 5.1 million households, out of 26 million, switched last year.
The good news is that you could save up to £325 a year by switching energy suppliers, especially if
you’ve never switched before. The important thing is to compare prices across all energy plans