According to Resolution Foundation analysis, UK households could be £1,000 worse-off in 2022 as a result of all these factors.
In times of financial crisis, it is also worth cutting costs elsewhere. At the minute, the likes of Martin Lewis are actively telling customers not to switch energy providers, but this is not the case with life insurance.
If you are looking for a life insurance policy or want to switch to another provider to save money or get better cover, The Insurance Surgery can help.
We are experts in finding life insurance policies for people with pre-existing medical conditions, dangerous jobs or hazardous hobbies. We are the number 1 insurance broker for those with medical conditions on Trustpilot, and 5 star rated on Feefo too.
You can start your online enquiry today by clicking here.
Why is the UK having an energy crisis?The energy market has seen a rise in costs for oil and gas, which in turn means the price you pay for your energy supply is increasing.
Household fuel bills were already rising before Ofgem increased the energy price cap on October 1st. This has been driven by the soaring price of natural gas. Natural gas is now four times as expensive as it was earlier this year. There is also increased demand, which is why we see the country in an energy crisis.
The price cap limits how much extra cost energy suppliers can pass onto customers, which eats into their profits.
Most companies have upped their prices for electricity and gas as much as they can, with concerns bills could rise by as much as £400 per year for some people.
Industry experts say natural gas prices won’t fall until well into 2022. This means that of around 70 energy providers left in the UK, dozens are expected to fold.
Brexit plays a role in rising fuel bills too. The UK’s separation from the EU means it no longer has access to its energy sector, meaning prices in Britain are more sensitive to fluctuations.
How can I easily save money?Sometimes, it can be easier than you think to save a few pounds here and there. Every penny adds up, so it’s well worth looking into areas that will counteract the rise in costs elsewhere. We’ve popped together our top 5 easy saves:
1) Look at your outgoingsA lot of banking apps now categorise your spending, which can help you set budgets and monitor where your biggest outlays are. This splits your spending habits into Bills, Home & Garden, Eating Out, Transport, Shopping, Entertainment, Groceries and Health & Beauty, which you can then set budgets against and get a notification when you’re close to your limit.
This can help you monitor where you can save money and what you spend the most on. From there, you can make cuts where you think you could spend less.
2) Stop unnecessary shoppingWe’re all guilty of online shopping more than we should sometimes, especially when tempted by seasonal sales and special discounts. Start thinking about whether you genuinely need items, rather than giving in to the temptations of a bargain.
The same goes when doing your grocery shopping. Try switching supermarkets to make savings on your day to day items and avoid ‘popping to the shop’ for one or two items if you know you’ll end up spending more than you thought.
3) Cancel unused subscriptionsLook through your bank statements or online banking apps and look at your subscriptions and direct debits to make sure you need and use all of them.
There may be some that you have forgotten you even have, or subscriptions that you hardly use and will not miss. Cancelling extras may seem like small amounts here and there, but they will soon add up and you may find you’re wasting £50 or more that you could be spending on necessities.
4) Save petrolThe recent petrol crisis saw lengthy forecourt queues, and although the queues have died down, the prices at the pumps continue to rise.
Motorists could face the highest ever petrol prices before the end of the year, according to the RAC. Filling your tank currently costs around £12 more than it did a year ago. This is down to massive demand for fuel around the world.
With unleaded petrol set to hit a record high of 143p per litre, maybe it’s time to get the bike out of the garage or dust your walking shoes off.
During lockdown, we became a nation of walkers and enjoyed our hourly exercise, giving us an excuse to leave the house, enjoy the fresh air and discover more of our neighbourhoods. To save money on petrol, pick up the old habits and take winter walks to the shops or the park instead of driving there.
5) Meal planFood prices are also on the rise, which isn’t a great thought with Christmas on the way and the cupboards expected to be bursting at the seams. Shortages of both lorry drivers and CO2 are driving food and drinks prices up across the country.
Supermarket prices increased by 1.1% in August, according to the Office for National Statistics. This is the sharpest rise since the financial crash in 2008.
Globally, a growing population combined with limited farmland for growing food is also pushing up the price of food. In terms of the energy crisis, natural gas is required in the production of CO2, and carbon dioxide is crucial in the transportation, storage and creation of many everyday products.
One way to help the cost of your food bills is to plan your meals in advance. Get together as a family each week and decide on the meals you’re going to eat, then buy everything you need rather than trying to put meals together after your shop.
The impact on your Life Insurance PolicyAlthough there is nothing to suggest the price of your insurance policy will be impacted, it’s worth taking a look at how much you are paying and what you are getting for it.
It is so important to keep hold of your policy, even if you’re trying to tighten your belt slightly in other areas. You never know when you or your family will need it.
If you do have a life insurance policy that you pay monthly for, it’s important to keep the details up to date. This is especially true if you’ve have had a big change in circumstances, such as buying a home or having children.
Lifestyle changes such as quitting smoking or lowering your BMI can also impact how much cover you are able to get, and at what price .
If you would like to review your cover and see if you can save money, or would like to take out a policy to protect your family, fill in our online quote form and one of our expert advisors will be in touch to discuss your options.