Haggle and don’t overpay

WITH energy prices due to increase this winter and the cost of living crisis generally getting worse, here are my top ten tips to help with the pinch:

1

HMRC has this week started to dish out the first of two payments to those who claim tax credits.

The Cost of Living Payment is worth £650 to those on eligible benefits and is paid across two instalments of £326 and £324. You are eligible if you were in receipt of any of the following benefits between April 26 and May 25: Income-based Jobseeker’s Allowance (JSA), Income-related Employment and Support Allowance (ESA), Income Support, Pension Credit and/or Universal Credit.

If you successfully claimed any of these benefits before May 25 you could also be eligible for an extra £150, which will be paid from September 20: Adult Disability Payment (in Scotland), Armed Forces Independence Payment, Attendance Allowance, Child Disability Payment (in Scotland), Constant Attendance Allowance, Disability Living Allowance for adults, Disability Living Allowance for children, Personal Independence Payment and War Pension Mobility Supplement.

There may be other support, including: £400 discount from the Government to help with the cost of energy bills from October and/ or £300 Pensioner Cost of Living Payment that will be paid alongside Winter Fuel Payments. You can check all that you are entitled to on GOV.UK.

Check you are receiving all the benefits and help you are entitled to 2 Check you are on the cheapest energy tariff

Cheap tariffs are non-existent at present but most suppliers are saying you get a better deal if you pay by direct debit.

3 Check you are not being over charged for energy

Lots of consumers have complained that energy providers have taken too much money through their direct debits since the price cap increased by 54% in April.

If you are on a capped tariff and your direct debit has gone up by more than 54%, you may therefore have been overcharged. To check, take a meter reading and send it to your energy provider and ask for your bill to be checked against the actual reading and keep on doing this on a regular basis.

If you have been overcharged, your provider will give you credit, which can be deducted from future bill payments. In these circumstances you could also ask your provider to lower your monthly direct debit on the basis that a lower amount will cover your usage.

4 Do you have a variable mortgage?

You may want to lock into a fixed-rate mortgage so you are insulated from further rate increases, at least for the short term.

5

I’m aways telling you that by purchasing goods for over £100, you receive the protection of Section 75 of the Consumer Credit Act if something goes wrong.

Credit cards can also provide a way to borrow money cheaply for purchases and to spread the repayments over time at a rate that is affordable to you. If you search the market you will find 0% deals where you will pay no interest for a period. You can use this to pay off an existing card, which will lower your monthly outgoings as the interest element of what you owe will disappear from future payments whilst you are still in the 0% period.

Get a 0% credit card 6 Ask for help

If you have a mortgage ask your provider if they can help.

By way of example, energy provider OVO has this week announced a £50million support package to help its vulnerable customers, which will include payment holidays and it is likely that other suppliers will follow this.

7 Check your bank statements

Lots of us set up monthly direct debits and continuous payment authorities on our debit cards for the likes of gym memberships and subscriptions. However, many forget to cancel when they stop using such services.

A quick look at your bank statement each month can reveal payments that should have been stopped a while ago.

I tell consumers to do this every year and I am always overwhelmed by the huge numbers who thank me for it after they discover how much they are paying for nothing.

8 Check your subscriptions/ memberships

It is an obvious saving to stop any subscriptions or memberships you do not use – but don’t be afraid to haggle for a better deal.

Service providers – such as gyms and payfor TV services like Netflix and Sky – are also feeling the pinch and do not want to lose customers.

They will be open to providing a better deal or temporary discount in return for keeping your business.

9 Find free and cheap deals

The internet is full of great tools to help you save money.

For example, petrolprices.com helps you to locate the cheapest petrol stations near where you live.

Olioex.com is a fantastic service where households and hospitality businesses offer unused food to people in need in their communities rather than binning it.

To take advantage you simply sign up and chose the food you would like from their list.

There are many more websites and apps like these that will provide help and assistance during these hard times.

10 Check your council tax

In April this year 80% of households in tax bands A to D became entitled to a £150 rebate from their council.

Many consumers have told me they have not received this. If you were eligible but did not receive the payment, get on to your local council now.

It is also worth checking your council tax banding. Due to the way properties were valued when the council tax system was launched in 1991, it has been reported that over 400,000 homes are in the wrong band. If this applies to your property you could be owed thousands.