Families will need an extra £107 to cover basic bills in 'bleak winter' from October

Higher energy prices, rising food bills and a phased £20 a week cut to Universal Credit will leave families £107 a month worse off from next month.

From October, the £20 weekly uplift to Universal Credit – which equates to £86.66 a month – is due to be withdrawn for 5.9million people.

Furlough and self-employed schemes will also end in October which could trigger job losses or fewer working hours, further reducing income for some households.

Against a backdrop of rising gas prices, energy costs are also likely to increase from this weekend for October for 15m households on the energy price cap.

Those on a default dual fuel tariff, paying by direct debit will see an average annual increase of £139 from £1,138 to £1,277.

Are you worried about falling into debt this winter? Get in touch: mirror.money.saving@mirror.co.uk

© Getty Images/iStockphoto Families will need an extra £107 to cover basic bills in ‘bleak winter’ from October

This equates to an increase from £95 to £104 a month.

More than 4million prepayment customers will see an even larger annual increase of £153 from £1,156 to £1,309; a rise of nearly £13 a month.

In addition, with rising gas prices, failing energy suppliers and higher usage in winter, all UK households could see a surge in the price of their energy over the next few months.

Last year, the average household spent £277 a month on food expenses, but latest inflation figures of 3% from the Consumer Price Index suggest this could increase to £285 a month this year.

That means families will need an extra £107 a month to cover their essential costs this winter, according to Royal London.

Sarah Pennells, consumer finance specialist, said: “The Covid-19 pandemic is perhaps the biggest life shock our society has experienced.

“As we continue to feel its effects, there’s never been a more urgent need to help those who are financially vulnerable.”

Recent research from charity Turn2Us found that 15.9million UK adults are more financially vulnerable as a result of the Covid-19 pandemic.

“From October, many families are going to be hit by significant changes to their monthly outgoings and many will have less money to pay their bills due to the cut in Universal Credit” Pennells continued.

“For those suffering from a financial shock or worried about making ends meet, there are steps you can take.

“For example, if you’re finding it hard to pay your energy bills, contact your provider as they should help you with ways to pay and don’t be afraid to ask for help from a debt advice charity if you’re struggling.”

Thomas Lawson, chief executive at Turn2us, said: “The coming months will undoubtedly be very hard for individuals and families across the UK.

“The £20 per week cut to Universal Credit was already going to leave many families struggling to keep up with the cost of living.

“This, now combined with a sudden surge in energy prices, could spell disaster and plunge thousands more people into financial insecurity or even poverty; especially those of us whose financial resilience has been worn away by the pandemic.

“Our own research tells us that over half (52%) of people on Universal Credit will struggle to pay their bills when the cut comes into effect, with a further one in four people (25%) unable to afford their rent or mortgage payments.

“This means a very bleak winter for the most financially insecure among us and urgent action is certainly needed from the government to safeguard people against financial crisis.

“We also urge everyone to check what support they are eligible for and contact their utility suppliers if they know they are going to struggle to pay upcoming bills.”

How can I keep on top of my spending?

1. Write a monthly budget

If your income has reduced, you will have to consider your spending and one of the best ways to do this is by working out a monthly budget.

Start by working out how much money you will need to cover your monthly essentials such as your rent or mortgage, utility bills, Council Tax and any other debts, such as credit cards and/or personal loans.

Once you’ve done this, you should have a clearer picture of how much money you have to spend on areas such as your weekly shop

2. Check your benefits entitlement

It can be complicated to work out what state benefits you are entitled to. Turn2Us have a Benefits Calculator to check your entitlement to means-tested benefits.

The results page will tell you which means-tested benefits and tax credits you may be entitled to and how much you may receive.

We have a benefit calculator to help you with this, here.

3. Shop around and switch your household bills

You can save money by shopping around and looking for better deals for broadband, and car and home insurance. If you’re on the energy price cap, you may already bet getting the best deal as you’re protected, but it’s worth doing a quick comparison.

Normally, you would be able to save money on energy bills by switching from the standard variable tariff to a better deal. However, volatile energy pricing means that this may be the cheapest option at the moment. It’s worth double checking with your provider that you are on the best tariff available to you.

Broadband tends to be more expensive for those who are ‘out of contract’, 20million customers according to Ofcom are ‘out of contract’ and therefore likely to be over-paying.

4. Check your eligibility for help with Council Tax

If you don’t think you will be able to afford to pay your Council Tax because you’re now on a lower income or claiming benefits, you might be eligible for a council tax reduction.

What you get will depend on where you live, your circumstances, your household income and whether you have children or other dependants living with you.

5. Review your subscriptions

If you are having to get by on a reduced income, your focus should be on covering essential costs such as your mortgage or rent, utility and food bills and cutting back on non-essential spending.

It’s worth having a quick look through your bank transactions and credit card statements over the last few months to remind you of any regular payments that come out. You may be surprised at some of the things you are still paying for, but don’t need or use any more.

Is the cost of living out of control? Let us know your thoughts in the comments below

Internet Explorer Channel Network
News Related


Energiewende: Axpo will mutige Entscheide der Politik

Die Energiewende und eine stabile Versorgungssicherheit sind nur mit einem deutlich höheren Ausbautempo bei den Erneuerbaren sowie mit einer Verschuldung im Netzzuschlagsfonds erreichbar. Technisch wäre der Ausbau laut dem Energiekonzern ... Read more »

Shrewd piece of under-the-radar business paying dividends for Pep Guardiola and Manchester City

Due to the quarantine requirements facing Brazil internationals returning to the UK last week, Manchester City duo Ederson and Gabriel Jesus flew directly to Belgium after featuring in their country’s ... Read more »

Norway 2021 elections: There was a modest decline in voter turnout this year

Turnout fell from 78.2% to 77.2% in this autumn’s parliamentary elections compared with the parliamentary elections in 2017. The strongest decline in turnout was registered in the age group 25 ... Read more »

CBSE Date Sheet 2021 for Class 10, 12 minor subjects released, time table here

Central Board of Secondary Education has released CBSE Date Sheet 2021 for Class 10, 12 minor subjects. The time table for both Class 10 and Class 12 Term I is ... Read more »

Aryan Khan drugs case: Why it is difficult to get bail under NDPS Act

Bail is a rule, jail is an exception. This legal doctrine was laid down by the Supreme Court in 1970s enforcing the right to life and liberty guaranteed by Article ... Read more »

Liverpool title rivals Chelsea suffer double injury blow

Chelsea manager Thomas Tuchel has been handed a double injury blow as both Romelu Lukaku and Timo Werner were forced off in their victory over Malmo last night through injury. ... Read more »

Alfredo Morelos reveals factor in Rangers future as striker hails 'unconditional' love from fans

Alfredo Morelos admits “unconditional” love from the Rangers support makes him want to stick around Ibrox for years to come. © Rangers striker Alfredo Morelos is in his fifth season ... Read more »

Cambusnethan Boxing Club stars claim Scottish Championship medals

Cambusnethan Boxing Club last month took gold and two silver medals from the Scottish School and Junior Championships at Ravenscraig in Motherwell. Reece Muir took gold, winning his final against ... Read more »

Ahmedabad: Over 12,000 illicit liquor bottles crushed by road roller

Ahmedabad: Over 12,000 illicit liquor bottles crushed by road roller Over 12,000 bottles of illicit Indian Made Foreign Liquor (IMFL), pegged at nearly Rs 73 lakh, were crushed using a ... Read more »

Emirates cancels Khartoum flights for two days

© Provided by Khaleej Times Emirates cancels Khartoum flights for two days Emirates airline has cancelled flights to and from the Sudanese capital of Khartoum for two days. Dubai’s flagship ... Read more »

‘Heroic' school-run mum who rolled her Range Rover into Insulate Britain eco-mob faces calls to be PROSECUTED

DETECTIVES are being put under pressure to prosecute a “heroic” mum who was filmed rolling her Range Rover into an eco-mob. Sherrilyn Speid, 34, drove her £80,000 car into two ... Read more »

Boy, 2, fighting for life after being hit by a car as police launch probe

A TWO-year-old boy is fighting for his life after being hit by a car in Lancashire. The tot was airlifted to hospital after being struck in Whitworth, Lancs, around 5.30pm ... Read more »

Watch: Paul Scholes tears Man United apart in sensational rant following Atalanta comeback

© Provided by Extra.ie Manchester United battled back from two goals down at half-time to beat Atalanta 3-2 on Wednesday night but Paul Scholes was having none of it. His ... Read more »

Quiz: Did these 25 Ipswich Town transfers actually happen?

© Provided by Football League World General view of fog before the match It was a busy summer transfer window for Ipswich Town. The Tractor Boys underwent a major squad ... Read more »

Blackstone-backed Simone Acc Collection pulls IPO plan

Simone Acc Collection Chief Executive Officer Kenny Park (Simone Acc Collection)Blackstone-backed handbag maker Simone Acc Collection said Thursday it has dropped its plan to go public, dashing hopes for the ... Read more »

Ram Gopal Varma Makes Cryptic Tweet, Netizens Say He is Warning Telangana Minister

© Provided by News18 Bollywood director Ram Gopal Varma has directed some brilliant films. Every single theme, be it crime, romance, horror, or politics, Varma has explored it all. But ... Read more »

South Korea successfully test-fires Nuri rocket as it pursues space ambitions

South Korea test launched its first domestically produced space rocket on Thursday in what officials describe as an important step in the country’s pursuit of a satellite launch programme. © ... Read more »

Refresher courses need for councillors who lack skills to pass budgets - SAIGA

© Provided by CapeTalk Most councillors in SA don’t have the skills to deliver sound budgets, according to new data SAIGA CEO Russel Morena says municipalities need to invest in ... Read more »

Tips To Remember While Dying Your Hair For The First Time

Dyed hair look absolutly stunning; dyed hair give you a pop of colour giving a glow to your skin; they are like a representation of your style and you can ... Read more »

When Nazis killed 100 Serbs per dead German in Yugoslavia

© Provided by dw.com The October 21 massacre lives on in the memories of the Serbian population to this day Serbia does not play much of a role in Germany’s ... Read more »

Kareena Kapoor, Nora Fatehi, Varun Dhawan Among Celebrities Snapped Out And About

Kareena Kapoor spotted in Bandra. (Image: Viral Bhayani) Janhvi Kapoor spotted at Plites. (Image: Viral Bhayani) Bhumi Pednekar snapped during beach clean up drive at Cart Road.(Image: Viral Bhayani) Janhvi ... Read more »

Russia puts Navalny's ally Lyubov Sobol on wanted list

© Provided by dw.com Lyubov Sobol was one of the most well-known faces of Alexei Navalny’s entourage Lyubov Sobol, a prominent ally of Kremlin critic and opposition politician Alexie Navalny, ... Read more »

Bigg Boss 15: Former model and entrepreneur Rajiv Adatia to enter the show as a wild-card?

© Provided by BollywoodLife.com Bigg Boss 15 is getting all the love from the audience. The show has had a good start and slowly the contestants are making the game ... Read more »

I picked the perfect baby name for my daughter but now I've found out I've been saying it wrong and I hate it

10 DAYS after naming her baby girl, one woman came to the realisation that she has been pronouncing her babies name all wrong. To make matters worse, after introducing her ... Read more »

Oman Cricket Chairman, Pankaj Khimji: Son of world's only Hindu Sheikh

© Provided by WION Oman is hosting six matches in the first round of the 2021 ICC T20 World Cup, and Oman Cricket Chairman Pankaj Khimji feels that hosting such ... Read more »

Bigg Boss 15 EXCLUSIVE: Donal Bisht calls her eviction unfair; Adds ‘Tejasswi, Vishal playing a dirty game'

© Provided by Pinkvilla Donal Bisht recently made an exit from Salman Khan’s Bigg Boss 15 house, and in an exclusive conversation with Pinkvilla, the actress called this eviction unfair. ... Read more »

St James's Place lifts target as savings, investor mood boosts inflows

(Reuters) – St James’s Place raised its gross inflows target for the year, as surging savings and rising consumer confidence helped it bring in 2.56 billion pounds ($3.53 billion) in ... Read more »

Lacrosse star, 20, collapses and dies in horrific hotdog eating contest as pals pay tribute

A UNIVERSITY lacrosse star died on Sunday after choking during a hot dog eating contest. Madelyn “Madie” Nicpon, 20, was participating in an off-campus fundraiser on Saturday when she choked ... Read more »

Who Dies & Who Survives As Top Indian Cricketers Take On Squid Game Challenge

© Provided by MensXP Ever since its release, Squid Game has broken all kinds of viewership records, becoming the most watched show on a popular streaming platform. © Provided by ... Read more »

Dom Sibley withdraws from Lions tour, Harry Brook steps up

© PA Photos/Getty Images Dom Sibley struggled for fluency during a tough 2021 season © PA Photos/Getty Images Dom Sibley has chosen to withdraw from this winter’s Lions tour to ... Read more »

Sainsbury's lists kettles and toasters for FREE in website price glitch

BARGAIN hunters have spotted kettles and toasters on sale for free from Sainsbury’s in an online price glitch. Shoppers reported being able to add kitchen appliances to their shopping baskets ... Read more »

Two-minute silence planned in community a week after death of MP Sir David Amess

A two-minute silence is to be observed a week after the murder of Sir David Amess as a community continues to mourn the loss of its MP. The father of ... Read more »

Tesla's German plant hits snag as public consultation repeated

FILE PHOTO: “Tesla Street” sign outside the construction site of the future Tesla Gigafactory in Gruenheide BERLIN (Reuters) – An online consultation for local citizens to express objections to Tesla's ... Read more »

Union Pacific unions countersue railroad over Covid vaccine mandate for workers

Virus Outbreak Union Pacific (Copyright 2018 The Associated Press. All rights reserved) Union Pacific and its labor unions are suing each other to determine whether the railroad has the authority ... Read more »

Molly Mae Hague splashes out £3k on Chanel jumper to treat herself after secret surgery

MOLLY Mae Hague revealed she treated herself to a luxury Chanel jumper following her endometriosis surgery. Earlier this week, the TV star revealed to fans she had surgery for the ... Read more »

Latvia is first country to reimpose lockdown in Europe's new Covid wave

Photograph: Reuters Latvia has announced a month-long Covid-19 lockdown after an unprecedented surge in infections, becoming the first country in Europe to reimpose far-reaching restrictions as countries across the continent ... Read more »

Fined: Police officer who lied to police about his 'stolen' bicycle out of 'sheer stupidity'

SINGAPORE — A police officer who wanted to free his bicycle from its lock, but had lost its key, decided to call other officers to do the deed for him. ... Read more »

Smart bandage that detects temperature, bacteria type developed by NUS team

SINGAPORE — A National University of Singapore (NUS) team has developed the world’s first smart bandage with a sensor that can conduct assessment of chronic wounds wirelessly via a mobile ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic