Rising Energy Prices
Many of you are already aware of the increasing energy prices with Ofgem recently, announcing that the current price cap will rise by £693 from April. Global gas prices have risen at an all-time high in the last six months, with wholesale prices quadrupling in the last year causing the increase. Gas prices have hit a record high as the world emerges from lockdown as well time as other economic factors having an impact.
What help is available for rising bills?
£200 loan for energy customers
The government are giving all domestic energy customers in England, Scotland and Wales £200 towards their bill in October 2022. Your energy provider should automatically apply the savings to your account. However, beginning in April 2023, you’ll repay the £200 by adding £40 to your annual payment every year for the next five years.
£150 council tax rebate
People paying Council Tax in England on houses in bands A-D will receive a £150 rebate on their payment that will not have to be repaid. If you pay less than £150 per month, you’ll get this savings in April 2022 or across two or more invoices if you’re qualified. Councils are likely to be ready to handle claims in April if you do not pay through Direct Debit.
In Scotland, houses in bands A-D, as well as households in all bands who get council tax reduction, will get £150 towards their Council Tax. Individual councils were given the option of sending the £150 as a payment or as a rebate on their Council Tax payments. You should begin receiving your discount or payment in April 2022.
The Welsh government has also agreed a £150 payment to households receiving Council Tax Reduction in Council Tax Bands A-D, as well as those in Council Tax Bands E or F. There’s not a lot of information about how to get the £150 yet, but your local council should contact you.
For Scotland, Wales and Northern Ireland
The government has provided additional funds to the devolved nations, and local programmes are expected to be unveiled soon.
Welsh households can apply for a one-off £200 payment to help with their winter fuel payments. If your council thinks you’re eligible, they should have contacted you, but if they haven’t, you can apply yourself. Payments will be made between January and April of this year, with applications closing on February 28, 2022.
How to save on your energy bills
The initial steps are simple things like unplugging phone chargers, avoiding leaving things on standby, and using energy saving light bulbs. Remember that the more you use, the more you’ll pay. Double glazing and insulation can also help your home become more energy efficient.
If your house isn’t brand new, you’ll lose heat through draughts around doors and windows, gaps around the floor, and the chimney. Professional draught-proofing of windows and doors, as well as plugging cracks in floors and skirting boards, can cost roughly £200 but save around £40 per year on energy bills. Draught proofing can be done at home for a much lower cost. Take care with your laundry.
Simply by using your washing machine more carefully, you can save around £28 per year on your energy bill:
Instead of higher temperatures, use a 30-degree cycle in your washing machine. Reduce your washing machine use by one run per week for a year.
The tumble dryer should be avoided. To save £55 a year, avoid using a tumble dryer and instead dry your clothes on racks inside or outside in warmer weather.
Reduce the amount of time you spend in the shower. A typical home may save £65 per year on energy expenditures by reducing shower duration to just 4 minutes.
Replace your bath with a shower. Switching to a 4-minute shower once a week may save you £11 per year on your energy expenses.
Be smarter in the kitchen. Kettles are one of the most commonly used kitchen appliances. However, many of us will admit to occasionally boiling the kettle with more water than we intend to use. By not overfilling the kettle, you can save £11 on your annual electricity cost. You may also install an aerator on your existing kitchen faucet to lessen the amount of water that comes out while maintaining the same quality of washing and rinsing. An aerator is a little device with tiny holes that attaches to the spout of taps and is inexpensive and simple to install, saving you £22 each year.
Fill your dishwasher completely. Reduce the quantity of water you consume by only running your dishwasher when it is completely full. Reducing your dishwasher usage by one run each week for a year, may save you up to £14.
Insulate. Insulating your water tank, pipes, and radiators is a simple and effective approach to reduce your energy costs.