Cost of Living Crisis – 6 Things To Check
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I know there is nothing that is going to fix the cost of living crisis, but there are a few easy things you check (or even double-check) to make sure you are getting all the money you are entitled and are paying the right amount for certain services.
I’ve struggled to know what to write about here on my blog recently. Yes, I’m good at saving money and teaching people how to live a more frugal and sustainable lifestyle, but it feels like all the money-saving tips in the world won’t help with huge increases in the cost of utilities, food and fuel that people are currently facing.
Switching to value products in the supermarket and saving maybe a fiver on the weekly shop isn’t going to help someone whose energy bill has gone up over £100 a month. I’m really hoping the government step in soon and help those who really need it.
In the meantime, I’ve put together a list of money related things you can check to make sure you’re getting the money you’re entitled to.
Are You Getting All The Benefits You’re Entitled To?
There can be some stigma around claiming certain benefits, especially Universial Credit, but it is something you may be entitled to, depending on your circumstances. Even families where both adults are working could claim, depending on how much they earn and a few other factors.
If you have children and earn under £50k individually then you are also entitled to Child Benefit.
Money Saving Expert has a great benefits calculator which can show you which benefits you may be entitled to before you actually apply.
Could A Water Meter Be Cheaper For Your Family?
Having a water meter installed could actually be cheaper for some people, especially if you live alone or as a couple. Savings could be up to £20 a month after switching but do consider how much water you actually use, how often you shower and how often you run the dishwasher or washing machine.
Typically for families with children, sticking to a fixed monthly rate will work out cheaper than having a meter installed.
If you’re on a water meter and struggling with the cost, there are some things you can do to attempt to reduce your bills. This includes applying for a water saving pack from your water provider and limiting baths and using a timer for showers.
Are You In the Right Council Tax Band?
It’s worth checking what you’re being charged for council tax matches up with the band on the gov.uk website.
There are a few reasons your council tax band could be wrong, including a change of use of the property (for example it’s no longer used as a business) or if it’s a large building that has been split into multiple smaller dwellings.
If you think you council tax might be wrong, you can challenge it.
Marriage Tax Allowance
Marriage Tax Allowence allows married couples to transfer some of their personal tax allowance between one another and could net you around £250 each year.
For example, if one partner earns £20k and the other earns £7k, the lower earner can transfer £1,260 of their personal tax free allowance over to their partner, allowing the partner to pay less tax.
You can read more about the marriage tax allowance here.
Check Your Netflix Account
Now, I’m not going to tell anyone to get rid of Netflix to save money. Because, in a time where we are cutting back on pretty much everything, especially going out, it’s nice to have something decent to watch on the telly and a pretty much unlited array of shows for children to watch as well.
I’ve seen reports recently on social media of Netflix switching people accounts to HD without them realsing which is costing them extra each month. It’s worth checking this isn’t yours.
Additionally, if you pay for extra accounts, do make sure they’re all being used and switch back to the basic three if you can. I know lots of people allow sharing as they get another service in return from a friend or family member so if you’re happy pay the extra then that’s totally reasonably although Netflix has said that it plans to cut down on password sharing.
Is It Time To Remortgage?
Remortgaging could save you thousands of pounds, especially as interests rates are likely to start creeping up in the coming months.
Switching to a fixed mortgage rate can have lots of advantages, such as knowing how much you pay each month is going to stay the same for a fixed period, meaning you don’t have to worry each time a new base rate increase is announced.
You can usually fix your mortgage for two, three or five years and you’ll want to do lots of research to ensure you’re getting the best deal for your circumstances. Also be waryof arrangement fees, the cost of which can be as much as £1000 and may well cancel out any savings made by switching to a cheaper rate.
Changing mortgages is a big decision and you may want to enlist the help of a financial advisor, although again to be aware of any associated fees.
While none of these things is going to magically make the cosy living crisis go away, I think that sometimes it can really help to feel like we’ve done everything we possibly can to get our finances in good order when things are tough.
