Why your household bills could be about to soar – and what to do about it

Household bills could soar by up to £400 a year as the Government tries to find ways of funding its ‘net zero’ pledge by 2050, a new report has claimed.

The National Infrastructure Commission (NIC) says the Government needs to invest heavily in greenhouse gas removal technologies if it is to meet that target. It estimates that investment will cost the taxpayer up to £400m over the next decade, but argued that the most polluting industries, such as shipping, aviation and agriculture should pay £2bn a year from 2030.

However, the NIC acknowledged that this cost would likely be handed down to consumers in the form of higher food, transport, goods and energy bills. It estimates that the lowest earners are likely to see their bills rise £80 a year by 2030, with the highest earners having to fork out up to £400 more a year.

However, you can offset those costs by making some small money-saving changes elsewhere.

Here are just some of the ways you can trim your outgoings.

  • Cut your utility bills: the average dual fuel energy bill costs £1,131 a year, or £94.35 a month, according to Ofgem. However, you can cut hundreds a year off your bill by only using the heating when necessary, turning off lights when you leave a room, using energy efficient lightbulbs and making sure your boiler is serviced regularly. You could also save a lot of money by shopping around for the best energy deal by using a comparison site.
  • Check you’re not overpaying on council tax: More than 400,000 homes are currently in the wrong council tax band and are therefore overpaying, according to TV money expert Martin Lewis. It is thought that some homes have been in the wrong band since the current system was introduced in 1991. However, if you have overpaid, you might be able to claim a discount on future payments. Click here to find out how.
  • Use the car less: Petrol prices hit an eight-year high in June after eight consecutive monthly increases, according to motoring organisation RAC. With the average annual fuel bill standing north of £1,000, you could save a small fortune by opting to walk or cycle to work instead.
  • Reduce your debt interest payments: According to The Money Charity, the average UK resident has nearly £2,000 in credit card debt. If you’re paying high rates of interest on your loans and credit cards, look to see if you can shift them onto a card charging 0% interest. That way, your monthly repayments are paying down just the debt, rather than the interest.
  • Cancel unused memberships and subscriptions: Have a gym membership that you never use? Or perhaps paying for Netflix when you rarely watch television? Then you might want to consider cancelling them. But make sure you check you’re not locked in and liable for any early cancellation fees first.

If you’d like to discuss additional ways to make your money work harder, don’t hesitate to get in touch with your adviser.