How to fight the big FINANCIAL SQUEEZE

Money expert and financial journalist Kalpana Fitzpatrick shares her tips to help you get through the cost-of-living crisis and save up to £500 a month

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This month sees household budgets being squeezed harder as energy bills rise by around 27%, taking the average typical use to £2,500.

This is lower than the expected increase of 80% announced earlier this year after the new prime minister, Liz Truss, introduced the Energy Price Guarantee, which will freeze prices at this rate until 2024. But this is still a 27% increase on what you were paying before 1 October 2022.

Adding to this is high inflation and the growing costs of borrowing. So what can you do to help ease the pressure?

It may seem impossible, but small actions can add up and make a big difference.

Reduce energy costs

High living costs look like they’re here to stay. Even with the Energy Price Guarantee, the actual amount you pay will depend on your usage – if you use more, you pay more. One of the best ways to keep your bills low is to reduce your energy usage. Here’s how:

Cut your shower time to just four minutes – save £95 on average year

Turn off standby on appliances, like a microwave – save £65 on average year

Reduce washing machine temperature to 30°C and cut by one run a week – save £34 on average year

Switch unused lights off – save £25 on average year

Don’t overfill the kettle and fit a tap aerator – save an average £43 a year*