Cost of living - energy saving tips

 

Straight talking is about helping you make the most of your money, and right now navigating some of the difficulties we are all facing, starting with energy bills...

What can you do to keep warm as the season is changing and the prices are increasing? 

The weather is changing and we’re all starting to think about putting the heating on but…the thought of a massive bill is stopping us pressing the button! 

Of course, there are things that we can be doing to keep warm during the colder months whilst still being careful about costs but, ultimately, we need to put the central heating on at some point. So, we thought we would give you the low down on where things are at and what help we’re all entitled to: 

The energy cap 

Firstly, be careful how much attention you pay to the £2,500 figure that keeps being bandied about in the news. That’s just an illustration to show us how much the average household is now likely to pay each year. At the end of the day, you pay for what you use. 

The energy cap is actually a cap on how much providers can charge you for each unit of gas or electricity you actually use – so that’s now 34p per kWh for electricity and 10.3p per kWh for gas. Basically, this new cap is still 27% more than before – so if you were paying £100 a month before, you’ll now be paying £127 per month from October. 

But don’t forget we’ll all be getting some help from the Government… 

The energy bills support scheme 

Regardless of who you are or how much you earn, the Government is giving us all £400 to help with our bills. The way it works is that this amount will be paid to us in six monthly installments from October – so we’ll get about £67 a month. 

How it gets paid depends on your individual circumstances and your energy provider. For instance, some energy providers will pay £67 into your bank account shortly after your monthly direct debit has been taken. 

If you haven’t already, you’ll soon be getting a letter from your energy provider explaining how they’ll be applying the £67 a month. 

And don’t forget that this isn’t a loan that needs to be repaid – it’s a discount so you don’t need to be worried about just stacking up bills which will need to be repaid later! 

If you don’t receive a bill directly from an energy provider for instance your energy use is part of your rent, you’re on a pre-payment meter, or you live in Northern Ireland, the way you receive this support will be different. There’s a great page on the Government website that we’ll explain everything to you. Energy Bills Support.  

Don’t forget there are other government initiatives to support the most vulnerable households with the rising cost of living. You can find out more here Support for Vulnerable Households.  

Article by

NatWest Cushon