Cost of Living Crisis: Is it coming to an end?

We’re all feeling the pinch with the cost of living crisis and it is becoming more and more difficult to remember a time before the cost of living crisis. Things are tough right now, with millions of households struggling, and it’s getting harder to make ends meet.

Citizens Advice recently held an event where they shared some insights into the cost of living. Martin Lewis also joined the event and shared some of his expert opinions. Here’s a simple breakdown of what’s been happening and what it means for you and your family.

The Current Cost of Living Crisis

Lots of us are turning to places like food banks for help. Even with some government support, it’s still really hard to pay for basic things like food and heating. Even though the government gave some extra money in November, with the Cost of Living payment, many people still need to go to food banks.

In December, Citizens Advice experienced one of the busiest weeks when trying to support people with food bank referrals and emergency charitable support since last December.

Lots of people are struggling to pay for gas and electricity. This is a big problem, especially now that it’s getting colder. For those on prepayment meters, it is becoming more and more of a struggle to afford top-ups.

It’s gotten more expensive for providers to buy energy, which has led to this increase in costs for us to power our homes. GoCompare has developed an interactive energy cost calculator tool to find out how much something costs to run. You can use their calculator to pick the appliances you want to compare and select how long they’ll be in use for.

How This Hits Your Wallet

Bills More Than Income

For a lot of us, our income just isn’t enough to cover all our bills. This is a big worry, especially for families, people with disabilities, and those who rent their homes.

Not Just One Problem

It’s not just about paying the bills. Many are juggling lots of problems at once, like debt and housing issues.

What Can Be Done?

Need for More Help from the Government

We need more help, especially with things like energy bills. Even though the government recently increased benefits, it’s important that they make sure benefits go up with the cost of living.

Energy Saving Tips during the Cost of Living Crisis

Each of these energy-saving tips can help you to save money off of your energy bill. The more of these tips you can apply the more likely you are to save money on your bill.

For example, if you were able to apply all of our tips, you could save around £470 per year on your energy bill!

• Turning off your electrical appliances at the mains when they aren’t in use is an easy way to save money. Most appliances can be turned off at the plug, but check the instructions if there are any appliances you aren’t sure about.

• When you aren’t using them, or leave the room, switch the lights off. This is a quick and easy way to save money all year round. Replace your current light bulbs with LED bulbs. This will save you some extra cash and they last much longer than ordinary bulbs.

• It is common for your home to lose heat through draughts around the windows, doors, gaps in the floor and even through the chimney. There are many things you can do yourself to stop heat from escaping. These things are affordable and quick to install.

• Reducing the frequency you wash your clothes and the temperature to 30 degrees is a great way to save money. This temperature is more than sufficient to get your clothes clean. Even better, if your washing machine has an energy-saving setting, then use this! The most energy-efficient way of drying your clothes is outside. However, this isn’t always possible if there is a lot of bad weather outside. When you can, choose to dry your clothes on an airer to reduce your energy costs.

• It isn’t always possible, but swapping 1 bath per week with a 4-minute shower can help save on your energy and water bills. Also, About 12% of your energy bill comes from heating water. Reducing the time you spend in the shower will save you money and reduce your water bill.

• Kettles are one of the most used appliances in our kitchen. Commonly, we choose to fill the kettle up with more water than we need for one use. Reheating all of that extra unneeded water is costing you money. Only fill the kettle with the amount of water you are going to use.

• If you wait to use your dishwasher until it is full, you will likely use it less. This is reducing the amount of energy and water you are using, saving you money.

It’s gotten more expensive for providers to buy energy, which has led to it costing more for us to power our homes and businesses. GoCompare have developed an interactive energy cost calculator tool to find out how much something costs to run. You can use their calculator to pick the appliances you want to compare and select how long they’ll be in use for.

What Martin Lewis Says about The Cost of Living Crisis

The Cost of Living Crisis has Split the Country

Some people saved money during the pandemic because they weren’t going out. But now, with prices going up, they’re having to use those savings. On the other side, people who were already struggling are finding it even harder now. This shows a big divide in how people are doing financially.

Helping with Bills

Money Saving Expert are trying to make more people aware of ways to save on bills during the cost of living crisis, like special discounts (social tariffs) for water and energy. Head to their website to find out more.

Do it Once, Share with All!

Martin Lewis said that he is thinking about ways to make it easier for people who need extra help. This might mean a system where you don’t have to keep telling different companies about your situation.

…Introuding IE Hub.

1. One-Time Info Sharing: Imagine filling out your income and expenses just once, and being able to share it with any company that you want! That’s what IE Hub does.
2. You’re in Control: Want to let your bank or utility company know about your situation? With IE Hub, you decide who gets to see your information. It’s like having a personal financial assistant who only speaks when you say so.
3. Safe and Secure: We know that your financial info is super personal. That’s why IE Hub keeps it under lock and key, only sharing what you want, with whom you want.
4. Easy-Peasy: IE Hub is all about making things simple. A few clicks and you’re all set to share your info. It’s so user-friendly, that anyone can do it.
5. Absolutely Free: The best part? IE Hub doesn’t cost a penny. We believe everyone deserves a helping hand with their finances, no matter their budget.

So, if you’ve ever felt overwhelmed about telling each company about your financial situation, IE Hub is your new best friend. It’s quick, safe, and simplifies the whole process. Say goodbye to the headache of repeating your story over and over, and hello to more peace of mind! 🌟

Conclusion

Right now, a lot of us are having to choose between heating our homes and buying food thanks to the cost of living crisis. However, throughout these challenges, there are rays of hope and practical solutions.

Citizens Advice and organisations like IE Hub and Money Saving Expert are tirelessly working to provide assistance and advice.

Moreover, Martin Lewis’s suggestion for more accessible financial management tools helps us show IE Hub as the one-stop solution for your money management. It’s not just about easing the burden of talking to creditors; it’s about giving a sense of control and dignity in these challenging times.

It’s important to remember that there are resources and tools available to help. Remember, every small action counts, and together, we can make a difference in our financial well-being. Stay informed, stay hopeful, and let’s look out for each other. 💡🌱🤝