Energy price cap: Expert money hacks to tackle rising bills

Prices are rising at their fastest rate for 30 years and millions of households are facing the prospect of a soaring energy bill.

We asked four experts for their top tips on what people can do to protect their finances and soften the blow of rising bills.

Bola Sol is a finance coach and author of How to Save It.

She says it's time to do a deep dive on your budget and find out exactly where your money is going.

"Start by assessing if there is room for negotiation in any of your fixed expenses," she says. "Is there a better and cheaper provider?"

When it comes to variable monthly outgoings decide what should stay and what should go, she says.

"Every budget needs a miscellaneous fund for those expenses you did not see coming," she says. "Have one in for each month."

"Look at your calendar at who is celebrating a birthday, baby shower, wedding or occasion this month," she says.

"Ask yourself, if you go, how much will it cost you and is it worth going given the current climate?"

She suggests joining supermarket rewards schemes and family deals for streaming services as well as comparing prices online and searching for discount codes.

Myron Jobson is the senior personal finance analyst at the investment platform, Interactive Investor.

He says making small cuts in lots of places can be a less painful way to improve your finances.

"While making huge cuts to a few areas of spending could significantly ease the cost of living squeeze on your finances, they could also have an unacceptable knock-on effect on your quality of life and take a heavy toll on mental and emotional health," he says.

But small changes can add up, he says.

"For example, you do not have to completely forgo your daily coffee purchase, but you can cut back on how often you buy them."

After over two years of Covid restrictions, many of us are keen to spend money on getting out more, he says.

"Halving the number of jaunts averaging £50 a week in a month, for example, would give you an extra £100 a month which could go towards footing the extra £57.75 a month increase to the average energy bill," he says.

Kayley Hignell is the head of families, welfare and work at Citizens Advice.

She says if you are facing tough times it is important to make sure you are getting all the support you are entitled to.

"Important benefits to consider might be Personal Independent Payment, if you need extra help for an illness or disability, or universal credit if you are on a low income or unemployed," she says.

"Pension Credit, which can top up your income in retirement, is something many people do not know they are entitled to.

"There are also schemes like local council tax reductions and the new Household Support Fund where you will need to speak to your local council about what might be on offer."

Low-income families might also be able to get help with the costs of sending children to school, including school meals, transport and uniform through your local education authority, she says.

Helen Undy is chief executive of the Money and Mental Health Policy Institute.

She says mental health and finances can be intrinsically linked so money troubles can have a serious impact on our mental wellbeing, and vice versa.

"If you are feeling stressed or worried about your financial situation, it is important to know that you are not alone and there is help out there," she says.

"There is no debt problem that is not fixable with the right support. If you're struggling to keep up with bills, there are lots of free debt advice organisations that can help," she says.

"Similarly, if your finances are starting to take a toll on your mental health, it's important to seek help."

She suggests contacting your GP or speaking to a charity like the Samaritans.

"In recent years lots of banks and energy companies have introduced tools to help customers manage their finances so it is worth asking your providers what they can offer," she says.

These include sending copies of bills and other letters to a nominated person of your choice, so that they can help you make decisions.

Some banks now offer a carer's card, which is a debit card for a loved one to use on your behalf for limited purposes such as grocery shopping, she says.