If there’s one news story that has consistently been in the headlines throughout the majority of 2022, it’s the Cost of Living Crisis, now centred on the steep rises in energy costs.
Without any hope of a windfall tax being placed on the fossil fuel companies benefitting from the crisis, and comparatively little being offered by the government, as it stands, people need to work out a way to get through.
Already, the price cap is at a record-setting £1,971, but the cap will increase significantly in the October revision. For 2023, another £100 or £200 increase is being touted, but some say these are very low estimates. Few are expecting a sharp turnaround, and Warrington already sees one of the highest rates of inflation, but some minor adjustments can be made to help brace for the coming winter.
Bills set to pile up in the North of England
It has now been confirmed that the energy industry regulator Ofgem will increase the consumer price cap by a hefty 80 per cent, which would take the average house’s typical gas and electricity bills to £3,549 per year from October. Many of those on the lowest levels of income will be expecting to see as much as 120 per cent of their incomes go to housing bills because of the rising cost of living.
With the confirmation from Ofgem, it marks a treble on typical bills from this time last year. However, new prime minister Liz Truss is keeping the previously announced £66 and £67 cap on monthly payments for all homes through the winter months. The PM has also introduced a standing charges and unit rates cap for the next two winters, which will hold costs to around £2,500 for the average household, but there isn’t a total cap on what you pay.
Of course, before energy bills started to surge, it was all about inflation. With the UK being one of the worst affected by inflation against comparable nations, it’s still a major sore point for most. While Warrington is hardly the most heavily impacted in the region, the town’s estimated inflation for the summer months hit 10.1 per cent – not too far from the nation-leading Burnley at 11.7 per cent.
Bracing for the winter months
While measures are being taken to help households, everyone knows that winter is going to bite hard. You will likely have seen countless adverts championing customer-facing businesses that are ready to help with new promotions, as now, helping customers get through the price surge is a major point of competition. This is especially true when it comes to the guardians of our cash – the banks.
You can make the most of this by switching to more user-friendly accounts for interest rates on overdrafts which can help you change over quickly. This can be seen with the current account offering an interest-free overdraft of £250 as well as a £175 switching bonus – a process that can be completed in seven working days. It grants a welcomed cushion of the uncertainty of bills to come without adding another cost.
Now is the best time to switch, explore competitors, and make sure that you’re getting the best rates. Naturally, the first port of call should be your energy company. If a competitor is willing to charge less, then switching would be a savvy move. Some of the major providers also offer grants to those who need help to pay off debts, which is worth keeping in mind if you want to switch.
A final tool that can come in handy for your specific address is the Simple Energy Advice calculator. With this, you can get tips on improving your energy consumption efficiency, as well as local council schemes that may apply to your household. However, an EPC needs to be registered for your property for the tool to function.
Most grants being rolled out by the government will be automatic, but there are some ways that you can be proactive to help brace for the winter months of high energy costs.
