Households failing to save by not keeping eye on cash

More than half of Scottish households are missing out on the chance to save money by failing to review their monthly expenses, according to new figures.

A UK-wide Ipsos MORI study commissioned by the Energy Saving Trust surveyed 2,480 adult bill-payers in the UK, revealing that only 44% of Scottish householders would consider reviewing their monthly bills to save an extra £300.

It was found that more than a third of the Scots surveyed would be willing to spend 10 hours or more of their free time working overtime to make the amount, while a fifth would consider turning to debt via a credit card.

Meanwhile, 12% said they would ask friends or family for a loan, with 30% saying if they had the money they would use it to pay off debt or buy essential household items.

Big Energy Week, a joint campaign between the Energy Saving Trust, Citizens Advice Scotland and the Department for Business, Energy and Industrial Strategy found that Scottish households could save around £300 just by switching energy supplier.

The campaign which launches on Monday will run until Sunday November 6, hosting events throughout the UK to offer advice on reducing energy costs and help people keep their homes warm this winter.

Philip Sellwood, chief executive of the Energy Saving Trust, said: “It is a concern that many people would look to use a credit card or ask those closest to them for cash if they needed to raise an extra £300.

“With 30% of people saying they would use that money for essential items or to pay off debt, this could lead to a vicious cycle of paying off debt with more debt.

“Changing energy supplier is a much more sustainable way of achieving savings of around £300, while simple changes in the home such as adding extra insulation or using energy efficient bulbs will give added protection from possible increases in energy prices.”

Anne Lavery, acting chief executive of Citizens Advice Scotland, said: “People can save hundreds of pounds by switching their gas and electricity. By checking how much they’re paying and comparing prices people can work out if they’re currently on the best deal, and if they can cut their bills by going to another supplier.”