Gas and electricity bills for around 22 million households across Scotland and the rest of the UK will increase by £693 from April after Ofgem reviewed its cap on energy bills.
The upcoming rise of 54 per cent means the average household energy bill will soar to an eye-watering £1,971 per year and may go up even further in October, according to the latest analysis by Martin Lewis and his MoneySavingExpert.com team.
The price hike will undoubtedly put pressure on households, especially the vulnerable, those on lower incomes and the thousands of employees now working from home on a permanent or hybrid basis.
Working from home can add extra costs on to your energy bill so it's important to make sure you've claimed the tax break from HM Revenue and Customs (HMRC), which is worth up to £125 for the last two years, depending on your tax code. This is available for everyone who has been asked by their employer to work from home for at least one day due to coronavirus restrictions since March 2020 - find out more here.
And to help you cut unnecessary costs at home, experts at Hitachi Personal Finance have shared their top 10 tips on how to save money on household bills including reducing water usage, understanding the impact your thermostat has on your bills and applying for support.
10 ways to keep energy bills down this year
1. Only boil the water you need
As a nation, we consume 165 million cups of tea each day, yet two thirds of us boil far more water than we need. Collectively, UK tea drinkers could save nearly £1 million a day in electricity usage by only boiling what's needed. That's not even including coffee drinkers, or anyone else boiling water for cooking.
2. Don’t over shop
For most households, a fridge is the single biggest power consumer, running 24 hours a day, seven days a week. To keep costs as low as possible, pack your fridge about two thirds full without overcrowding. This allows the cold air to circulate and means less than a third of it can escape when you open the door.
3. Lower the thermostat
While it may seem like a small change, adjusting your thermostat to just one degree lower can have a huge impact on your heating bill, reducing it by up to 10 per cent.
4. Bleed your radiators
If a radiator is colder at the top than at the bottom this usually means it needs bleeding. This process releases the trapped air that stops radiators heating up properly, impacting the efficiency of your heating system.
5. Take a shower
On average taking a shower instead of a bath saves around 40 per cent of water, and therefore cuts the cost of heating that water. Of course, this is dependent on the type of shower you have and how long you shower for.
6. Consider upgrading your thermostat
Updating your thermostat to a smart thermostat allows you to create automatic and programmable temperature settings based on daily schedules, weather conditions, and heating and cooling needs.
While the initial cost of this tech may seem high, keep in mind that savings through a smart thermostat could end up paying for itself in the long run.
7. Check your windows
Simply closing and opening your curtains or blinds will help to reduce the energy use of your home.
Closing your blinds or curtains can add insulation to your windows resulting in less heat loss, while on sunny winter days, opening your windows will allow sunlight to shine through and help to heat inside spaces.
8. Switch your bulbs
Replace your bulbs as and when you can with energy efficient LEDs – on average it could save about £40 a year on bills and if everyone changed their remaining bulbs to LEDs, the UK could save 1.8 million tonnes of CO2 emissions per year and £1.1billion on our collective energy bills.
9. Apply for Warm Home Discount Scheme
The Warm Home Discount deducts £140 from winter energy bills, which benefits elderly people and those on a low income or certain benefits - following Ofgem's announcement, the UK Government has now increased this to a £150 payment which goes directly to your energy supplier and applied to your account.
10. Claim tax relief
If you are working from home, tax can be claimed back on up to £6 a week to help cover the additional costs, such as higher energy bills. To claim tax back on working from home costs you will need to complete a P87 form online.
You won't have to show receipts or prove this is how much you spent, however, if you have been reimbursed by your employer, you can’t claim, as they have already included this.
You usually get the money back by paying less tax, rather than receiving a refund and your tax code may be adjusted to show this change.
Vincent Reboul, Managing Director of Hitachi Capital Consumer Finance, said: “The effects of the pandemic, compounded by the fact many people are still working from home have meant there are widespread concerns around budgeting for heating costs this winter. However, small changes around the home could save you hundreds of pounds on your bills.”
For more insight into how to get your home ready this winter, visit the Hitachi Personal Finance website here.
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