As the cost of living surges our experts have answered 20 key questions on how you can cut your household expenses and find support.
We're all feeling the pinch as inflation and mortgage interest rates remain stubbornly high, so here are our tips. You can use the jump links to get to the section you want to read about.
- Energy bills
- Mortgages
- Food costs
- Phone, broadband and insurance bills
- Shopping
- Fuel
- Cheap ways to borrow
- Help if you're struggling
Find out more: the Money Helper Bill Prioritiser tool can help you put your bills and payments in the right order. If you’re struggling to pay – whether it’s your rent, your mobile phone bill or loan repayments – it will tell you what to do in two easy steps before you miss a payment.
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How to cut your energy bills
Energy prices remain high, and most households are on variable tariffs subject to Ofgem’s price cap with limited options for cheaper deals. Energy researcher Sarah Ingrams, senior sustainability researcher Karen Lawrence, senior appliances researcher Jake Massey and Science Team Manager Steph Kipling answer some of your most commonly asked questions.
1. Should I try to switch energy supplier at the moment?
Usually, we'd advise everyone to compare prices and switch energy supplier or tariff to get the best deal. But these aren't normal times and there is a limited choice of fixed deals at the moment. Some suppliers are offering fixed deals only to their existing customers. A few are open to anyone. But most won’t save you much compared with the current price cap and most variable tariffs cost pretty much the same.
The majority of us are on variable (also called out-of-contract or default) tariffs at the moment. If your fixed tariff has ended, or you've been moved from a failed supplier to a new one, you'll be on a variable tariff.
Since 1 July, the energy price cap has been in place. It limits the price of a single unit of energy for customers on variable energy tariffs. It doesn’t apply if you’re paying for a fixed tariff.
Under the price cap, energy bills for a typical household are currently around £173 per month (or £2,074 per year). The average electricity unit rate is around 30p per kWh and the average gas unit rate is around 8p per kWh.
From 1 October, this will drop slightly to around £160 per month. That's because the unit rate for electricity will change to around 28p per kWh and the unit rate for gas change to around 7p per kWh.
However, the daily standing charges you pay are staying the same or may even increase slightly. So, depending on where you live and how much energy you use, your bills will change differently from the headline figures.
Price-capped rates vary depending on where you live and how you pay. Your total bill depends on how much electricity and gas you use.
The price cap is set by energy regulator Ofgem and is based on wholesale rates. It changes every three months and is expected to rise in January 2024.
If you're still on a fixed-term deal, don't switch too early. Keep an eye out for how prices compare before switching. Watch out for exit fees if you’re considering fixing your tariff. They can be £75 per fuel.
- Find out more:the energy price cap explained
2. My energy direct debit has gone up - what should I do?
Your direct debit is not your energy bill. They are a set amount your provider takes from your bank account each month to cover the cost of the gas and electricity you use, which will go up and down each month.
Your actual bill combines a daily standing charge for each fuel you use, plus the energy you've used charged at a unit rate per kWh. The money from your direct debit is used to pay this. Sometimes you may be in credit to your provider, and sometimes in debt. This happens because you'll use far more energy in some months (typically in winter). It should balance out over a year, and your company should review your direct debit to check it does.
Reasons your direct debit payments have increased might be:
- if you've moved onto a pricier deal (for example if your fixed tariff has ended and you've moved onto an out-of-contract variable tariff automatically, or your energy company has gone bust and you've moved to a new one);
- if you’re on a variable tariff and the rates have increased to the point your supplier calculates your direct debits no longer cover the cost;
- if your payments were based on an estimated use (for example, if you moved into a new home, so couldn't give accurate figures) and you're using more energy than predicted when you give meter readings;
- or if your supplier has noticed your energy use has increased.
If you don't understand why your direct debit payments are going up, ask your supplier. If you don't agree (for example, if you think your current payments will cover your bills despite your increased use or the higher rates of a new tariff) you can ask for your monthly payments to stay the same.
If you are unable to pay your higher energy bills, help is available. Contact your supplier in the first instance, as they may well have support schemes. Depending on your circumstances, help may also be available from the government or other local grant schemes.
Cost of living grants are available for low-income households. Find out whether you're eligible.
- Find out more:how to complain if your bill is wrong
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3. What's the most energy-efficient way to heat a room if I don't want to put the central heating on?
Central heating is generally the most cost-effective way to heat your home, but make sure it's working efficiently and use timers, room thermostats and thermostatic radiator valves (TRVs) to control which rooms are heated and when.
Set your thermostat to the lowest comfortable temperature: we estimate turning it down by just 1°C can save around £100 a year.
If you get your boiler serviced by an engineer, ask them to set a flow temperature they think is right for your home. They might advise you to reduce it, and this can save you money.
If you only need to heat one room, a portable heater can be cost-effective. Convector heaters, including oil-filled and oil-free radiators, are best for heating a room for a few hours or more, while fan or halogen heaters are better for a shorter blast of heat to warm you up quickly. Choose a heater with a decent thermostat and timer to avoid overheating and save money.
Portable heaters are nearly 100% energy efficient, so you get what you pay for in the energy you use. But they’re 2-3kW electric-fuelled devices, so they’re not cheap to run.
- Find out more: use our guide on how to use heating controls and thermostats to save on your heating bills and our advice on how to buy the best electric heater
4. What's the most energy-efficient way to cook?
Electric ovens, whether part of a cooker or a built-in oven, are more energy-efficient than gas. Similarly, electric induction hobs are the most efficient as they supply heat only to the pan, and not out into the kitchen; electric ceramic hobs are second best, while gas trails in third.
But because gas is cheaper than electricity, your energy bills will be lower if you cook on gas.
Our tests show that air fryers can save energy and money compared to using an oven and other appliances. This is because heating a smaller space requires less energy. Microwaves also cook some small items quickly and efficiently, so are a good option for keeping costs low.
- Find out more:comparing the cheapest ways to cook
5. Could buying an energy-efficient appliance really make that much difference to my bills?
Absolutely. Check out our free 'how to buy the best' guides (including how to buy the best tumble dryer and how to buy the best fridge freezer), which list the running costs of popular models, updated each time the energy price cap changes.
All our energy cost data comes from our independent lab testing, where every appliance we review is tested in real-world scenarios to measure how much energy it uses. You could save up to £105 a year by factoring this in when buying new appliances, and even more over the life of the appliance.
6. Are there any cheap ways to insulate my home?
While some energy efficiency upgrades need professional installation, there are other quick and cost-effective DIY ways to insulate your home. Our top five recommendations are:
- Insulate the loft
- Install draught proofing
- Insulate hot water pipes and tanks
- Fit secondary glazing
- Add cosy furnishings
- Find out more:are you eligible for an insulation grant?
How to cut the cost of your mortgage
Senior writer Joe Wright sets out tips if you are struggling with your mortgage payments.
7. What's happening to mortgage rates?
Homeowners are currently facing the highest mortgage costs for 15 years. The average two-year fixed rate is 6.66% and the average five-year fix is 6.15%.
Rates on fixed deals decreased in August, but the dips were minimal.
What happens next depends on the base rate, which could rise for the 15th consecutive time in September. It seems likely the average rate on mortgages will linger around the 6% mark for the coming months.
Some providers are pricing deals more competitively though. You can keep an eye on the lowest rates in our regularly updated story best mortgage rates for home movers and first-time buyers.
- Find out more: use our mortgage repayment calculator to see how your current payments could change if you had to pay a higher rate.
8. What should I do if I need to remortgage?
If your current mortgage term is due to expire in the coming months, there's no escaping the fact you'll see your monthly outgoings increase as you'll be refinancing onto a higher interest rate.
But you can lessen the financial impact by shopping around to find the cheapest available deal. Don't feel that you have to stay with your existing lender, as you could find a better deal elsewhere by doing your own research or using a whole-of-market mortgage broker.
It’s key to get ahead of the game and not leave things to the last minute. You can lock in a new rate up to six months before the agreement commences, and request a better deal at any point before then.
Remortgagers are leaning towards two-year fixed rates rather than longer five-year terms, in the hope of getting onto a cheaper deal in 2025 when interest rates may have potentially calmed.
If you don’t remortgage (or request a product transfer from your existing lender), you’ll fall onto your provider’s pricey standard-variable rate.
- Find out more:can you save with a mortgage product transfer?
9. What can I do if I can't pay my mortgage?
Contact your mortgage provider to make them aware of your situation, as they should offer you temporary support.
You could be offered a mortgage holiday where your payments are paused for a set period of time, a temporary switch to interest-only payments, or the chance to extend your mortgage term to reduce monthly payments (for example, taking the term from 30 years to 35 years).
In June, the majority of mortgage lenders signed a new mortgage charter confirming support options for those unable to keep up with their payments. Under the charter, anyone who misses payments will not have their home repossessed without consent, unless in exceptional circumstances, for at least 12 months.
- Find out more:what to do if you can't pay your mortgage
How to save on food
Senior shopping editor Ele Clark and gardening editor Ceri Thomas explain how to cut the cost of food.
10. Food prices are rising - how can I keep my grocery bills down?
There's a big difference between prices at different supermarkets - each month we compare the UK's biggest grocers to reveal the cheapest supermarket.
Discounters Aldi and Lidl are unfailingly the cheapest, but if you prefer the range of a bigger store and the convenience of online deliveries, Asda or Morrisons could be a good bet. Asda had been the cheapest 'big four' supermarket for more than three-and-a-half years until Morrisons knocked it off its perch in July.
Regardless of where you shop, always use a shopping list to avoid picking up things you don't need (it also helps to avoid shopping when you're hungry); scrutinise the 'special offers' to check whether they'll really save money; and consider swapping big brands for own-label products. Buying less meat and fish can also mean cheaper food bills.
Which? also has a unique monthly supermarket inflation tracker, which can help you spot the foods going up in price fastest and compare inflation across eight of the biggest supermarkets.
- Find out more:how to save money at the supermarket
11. How do I grow my own food?
You can grow fruit and veg even if you don't have a garden by using pots and window boxes. You can grow herbs on the windowsill and perhaps look into renting an allotment in your area.
Autumn is the time to plant garlic which will crop next year. You can also plant lettuce and winter salads in September, plus spring onions, spinach and coriander. Make sure you harvest any tender veg before the first frosts arrive.
- Find out more:how to grow your own fruit and veg
How to pay less for broadband, mobile phone contracts and insurance
Paul Lester, senior home editor, Yvette Fletcher, principal telecoms researcher and Sam Richardson, money editor, advise on how to save on your bills.
12. My broadband costs a fortune, should I switch?
If you're out of contract - switching is a great way to save money and can also mean a faster and more reliable connection.
If you still have standard broadband (also known as ADSL), upgrade to fibre. Fibre broadband can cost the same as standard broadband - or less - plus it's more reliable.
Out-of-contract customers stand to make significant savings of up to £200 on mobile, broadband or TV packages.
- Find out more:use our broadband comparison service to check the deals available to you or discover 10 ways to save on your broadband and TV bills and check our expert pick of the best broadband deals.
13. Am I wasting data - and money - with my mobile phone contract?
It's worth keeping on top of your data to make sure you're on the best mobile phone deal – many contracts tantalise with high or unlimited data, but don’t pay for something you won’t use.
One of the best ways to save is often to buy a phone outright and pick up a cheap Sim deal separately. Our mobile phone comparison service lets you set a minimum data allowance and explore deals by price - you can use it to check whether the amount you're currently paying is reasonable and find a new provider if you want to make a switch. Check our pick of the best Sim-only deals, where prices start from around just £5 a month.
If you’re with one of the big four - EE, O2, Vodafone or Three, you could also be one of millions who stand to save over £200 a year on their mobile bill.
- Find out more:we explain how to save money on your mobile phone bill, mobile perks that can save you money and how going Sim-only could save you hundreds on your next phone contract
14. How do I haggle with my broadband or mobile provider?
If you're happy with the provider you're with, you might feel reluctant to move to get a better deal. Negotiating means you can stick with your current provider and pay less.
Haggling can sound more daunting than it is, but providers both expect and invite customers to do it. If you don't fancy a long call, most companies allow you to do it via email or live chat instead.
The key is to shop around first to see how much you could save elsewhere and have these deals to hand when you negotiate with your provider.
- Find out more:use our guide onhow to haggle for the best broadband deal and check out the best mobile phone and Sim-only deals to get ready to negotiate
15. How can I cut my insurance bills?
As your car or home insurance renewal approaches, use comparison sites to see if you can get cheaper quotes than your current insurer is offering. If you can, ask your insurer if they can match or beat the best quote.
Paying annually for insurance will often be cheaper than paying monthly.
Check your cover level and strip out any optional extras you don't need. Similarly, increasing your voluntary excess will reduce your premium, but make sure you can afford to cover it in the event of a claim.
Young and inexperienced drivers tend to pay the most for car insurance. Adding a more experienced 'named driver' to your policy can reduce the premium, as their lower risk will be taken into account.
You could also consider black box policies. These use GPS devices or smartphone apps to track how you drive, meaning the insurer can give you a more tailored price.
- Find out more:how to find cheap car insurance
How to save on shopping
Consumer rights editor Stephen Maunder and senior computing editor Lisa Barber help out with shopping questions.
16. Should I buy second-hand/refurbished tech to save money?
It depends. There's a strong second-hand and refurbished laptops market but with caveats. Reconditioned Windows laptops are very good value, but make sure the one you buy is compatible with Windows 11 if it hasn't already been updated (Windows 10 will only be supported until 14 October 2025). Our Windows 11 compatibility checker will help.
If you're interested in a Chromebook use our Chromebook update checking tool to find how long it will continue receiving important updates.
If you're looking to upgrade your existing laptop because it no longer receives security updates or is running too slowly, you could save money by turning it into a free Chromebook - you will need to install ChromeOS Flex.
Apple stops supporting Macs once the latest version of macOS they can use is no longer updated. Second-hand Macs are more expensive as they hold their value, but look out for ones that are a year or two old as people look to upgrade.
There are similar caveats with second-hand mobile phones. iPhones have a long support life, but you’ll still want to avoid models that are more than a few years old. Many Samsung phones, including the premium Galaxy range, get five years support from launch, as do Google's Pixel phones. Other brands can offer as little as two. In general, it's important to do your research if you're thinking of buying second-hand Android, and use our mobile phone support tool to see how long a model has left.
iPads at least five years of updates. Other tablet brands vary considerably, with a little over two years for some Lenovo and Huawei tablets, and upwards of five for Amazon Fire devices. Use our tablets support tool to search for models. Find out more about refurbished iPads, including where to buy and what you need to know.
A refurbished TV isn't a bad idea if you buy from a manufacturer or a trustworthy retailer: Amazon Renewed has refurbished TVs, as does Appliances Direct. Panasonic has its own eBay outlet. Be wary of buying from a private seller on eBay, although if the TV has an issue that wasn't stated in the listing you can get your money back under eBay's terms of service.
- Find out more:how to buy a second-hand TV
17. What do I do if a retailer goes bust?
Spend any outstanding gift cards as quickly as possible, as retailers are legally allowed to refuse these once in administration. If your gift vouchers are refused, make a claim in writing to the administrators - you should be able to find out who they are on the retailer's website, and you can use our template letter to claim a refund for vouchers from a bust company.
If you've got returns to make, there's no guarantee you'll be able to get your money back - but it's worth writing to the administrator (as swiftly as possible) to request this.
For faulty goods, you may be able to get a replacement or a refund in the normal way if the company is in administration but still trading. If the company isn't trading, you'll need to claim to the administrator. You could also try claiming on an extended warranty if this was provided by a third party, or the manufacturer's guarantee.
If you paid by credit card you can make a claim for unwanted or faulty goods under Section 75 of the Consumer Credit Act. If you paid by debit card, you can try making a chargeback claim with your bank.
- Find out more:what to do when a retailer goes into administration
How to save money on fuel
Senior cars researcher Daljinder Nagra shares his tips.
18. How can I drive more efficiently to use less fuel?
Driving as smoothly as possible and preserving momentum will improve your overall fuel economy. Look further ahead so you can better anticipate traffic and reduce unnecessary acceleration and braking. Braking wastes energy used to get the car up to speed.
If you drive a manual, shift up gears as early as possible without labouring the engine. Newer cars often have an indicator on the dashboard showing the most efficient time to change gears. Many automatic cars also come with an Eco driving mode, which will alter when the gearbox shifts to minimise consumption.
On colder days, it's better to drive your car immediately (but gently) rather than letting it warm up while stationary. Modern engines warm up very quickly, so not only will it get up to temperature quicker - reducing the potential for engine wear - you'll also use less fuel.
Air conditioning and heated seats use a lot of power, and regular use can have a small but noticeable effect on your fuel bills. However, using air conditioning occasionally can prevent it from developing problems - around once a week is fine.
Check tyre pressures regularly. Even if yours are only slightly under-inflated, your engine will work harder to turn them, which can have a big impact on overall fuel economy. Check your wheel alignment checked at a garage from time to time. Potholes and bumps can cause gradual misalignment, which increases energy use and tyre wear.
Using a sat nav can help. Newer devices and apps help you avoid fuel-sapping traffic jams and many can calculate 'eco' routes, designed to be the most economical way to your destination, if not necessarily the fastest or shortest.
- Find out more:money-saving driving tips
How to borrow money cheaply
Senior writer Grace Witherden explain how to get the best deal on credit cards, overdrafts, and loans.
19. What's the cheapest and safest way to borrow money?
Check whether you have a fee-free overdraft. The providers that don't offer this often charge eye-watering APRs of up to 39.9%, so switch accounts if you need to.
If you have a decent credit history and are confident you'll be able to clear the balance in full at the end of the month, a 0% purchase credit card could do the job. These deals currently offer interest-free spending for up to 23 months. Most providers offer a 'soft search' before you apply for a deal so you can see your chances of being accepted and the type of offer you might receive without harming your credit score.
If you need a cash loan for under £3,000 a 0% money transfer credit card could be more effective than a traditional loan (loan rates on smaller sums are usually high). These allow you to move money from your credit card to your bank account for a one-off fee (normally up to 5%).
With a credit card you will need to make at least the monthly minimum repayment - normally a percentage of your outstanding debt. Missing a minimum repayment will be recorded on your credit report which can bring down your credit score.
If you need to borrow more, a cheap personal loan could be better. You'll need a good credit history to get the best interest rate. You will have to make fixed repayments every month and the credit isn't revolving like on a credit card - so you won't be able to dip back in and spend what you have repaid.
A loan of £10,000 taken out over five years at a rate of 5.7% APR (the best rate at the time of publishing) would cost you £191.27 a month, and you'd pay back £11,476.20 in total.
How to get help if you're struggling
Matthew Jenkin, senior money writer, explains the extra support available.
20. I'm worried I won't be able to pay my bills. What do I do?
Government cost of living help
Pensioners, those who receive certain means-tested benefits and those who receive disability benefits can expect further cost of living payments.
The first payment of £301 for low-income households getting certain benefits was sent out between 25 April and 17 May. Another £300 is due in the autumn, and a final £299 during spring 2024.
A disability payment of £150 was paid to more than six million eligible people between 20 June and 4 July. Those eligible for the pensioner payment are due to receive £300 during winter 2023-24.
The government started giving energy discounts of £400 to every UK household in October 2022 to help with the soaring cost of energy - this ended in April 2023.
- Find out more:everything you need to know about the government's energy support
Extra council tax support
If you're struggling to pay your council tax bill, contact your local council as soon as possible. You can spread your payments over 12 months, rather than 10, or you might be granted a one-off discount if you still can't pay.
If you're on a low income, live on your own or with someone who's disregarded for council tax, or get benefits, you may be eligible for a council tax reduction - but this will depend on whether you fulfil your local authority's eligibility criteria, so contact it to find out more.
Check if you're eligible for benefits
Check if you're eligible for pension credit - a weekly benefit that gives extra money to help with living costs if you're over state pension age and on a low income. It's also a gateway into other benefits, such as council tax support and cold weather payments.
If you're 74 or older and you or your partner receive pension credit, you can also apply for a free TV licence. This used to be free to all over-75s, but is now only for those claiming this benefit.
If you claim Universal Credit but find your payments aren't enough to cover household bills, there are schemes you may be eligible for - but their availability can depend on where you live and what your circumstances are. Cold weather payments and WaterSure bills cap, for instance, could help reduce monthly bills.
Help with other household bills
No matter what type of bill you're worried about, the first step is to talk to your provider - the sooner they know, the sooner they'll be able to work out a plan.
- Find out more:how to get free debt advice
This story was originally published on 26 October 2021. It was updated on 11 September 2023 to reflect the latest advice.