Shop around and beat the bill hikes

Checking eligibility for discounts and looking for new providers could save you a lot of money over the next year

- CAMILLA FOSTER

THE details and figures of the bill hikes that have taken effect this month have dominated newspaper headlines recently. While this news may feel overwhelming, there's no need to panic, as small changes can lead to substantial savings.

From switching to a fixed-rate energy plan to renegotiating broad-band and mobile contracts, and being mindful of daily energy con-sumption, here are some practical steps you can take to keep your costs in check...

Energy

Ofgem's recent hike to the energy price cap has raised the monthly bill of an average household paying by direct debit by £9.25, or £111 annually. The cost of gas has increased from 6.34p per kilowatt-hour (kWh) to 6.99p per kWh, while the price of electricity has risen from 24.86p/kWh to 27.03p/kWh.

So, now might be a good time to switch to a fixed-rate deal.

"If a fixed tariff is available at a lower rate than the new price cap, 'locking' it in can provide stability," says Amy Knight, personal finance expert at NerdWallet UK. "But, it's important to check for any exit fees before committing."