“With rising prices on many fronts, next month’s rise in National Insurance payments will cause further concern. The move which creates an extra levy on earnings will hit middle-income earners hardest, with them paying a higher percentage of their salary than higher earners. Unfortunately, many are unaware of this forthcoming change. A fifth of workers said they weren’t aware and although a further two-fifths knew it was coming, they admitted that they weren’t prepared for it.”
Anna Stevenson, Senior Welfare Benefits Specialist at Turn2us, says:
“The findings from Royal London are deeply worrying and should not be overlooked. Millions of people are already being forced to make impossible choices in order to survive. This isn’t right. With the cost of living spiralling, we anticipate many more people will find themselves facing financial hardship over the coming months and will be in need of vital support.
“If you are worried about money, we urge you to seek advice as soon as possible. You can do a practical financial health check, which means checking what benefits you are entitled to, or if you have debt concerns, speaking to a specialist debt organisation. Alternatively, you could also find out if you are eligible for any grants, as well as options on how you can reduce expenditure.”
Royal London’s money tips – ways to help manage your finances
- Save money on your energy bills
If you’re finding it hard to pay your energy bills, contact your provider as they should help you with ways to pay and don’t be afraid to ask for help from a debt advice charity if you’re struggling.
Switching your energy supplier used to be a good way of saving money on your household bills, but with energy prices soaring, you’re probably better off staying on the standard tariff with your existing supplier once your fixed tariff comes to an end. Some suppliers aren’t taking on new customers, and that way you’re protected by the energy price cap. The government-backed website – Simple Energy Advice – has tips on how to keep your energy bills down.
- Save money on petrol
Try using a fuel price checker site to check that you’re always getting your fuel for the cheapest price possible. Other ways to save include: driving at a lower speed and avoiding accelerating and braking quickly if you can; making sure your tyres are at the right pressure and taking out anything heavy in the car that you don’t need to carry.
- Food bills
Grocery bills can make up a big proportion of your household spending so it makes sense to look for savings. Plan your meals for a week and then write your shopping list – this will help you avoid buying unnecessary items. Consider changing to a cheaper supermarket or to different brands if you prefer a particular supermarket.
- Water bills
You can’t switch water suppliers but there are steps you can take to keep your bills down. Check if you’d save money by switching to a water meter. You can use the Consumer Council for Water’s calculator. If you’re on certain benefits and have a large family or someone with a particular medical condition, you may qualify for the WaterSure scheme which caps water bills. Meanwhile, if you’re on a low income or receiving benefits, check what additional assistance your water company offers.
- Council Tax
Depending on your circumstances and who is living with you, you may qualify for a council tax discount. For example, you can get a 25% discount if you’re the only adult living in the property. Find out what discounts are offered by your local council at GOV.UK.
If you’re on a low income or certain benefits you may be able to get a Council Tax Reduction. Your bill could be reduced by up to 100%. There’s a different scheme in Northern Ireland.
