The majority of Britain has been stuck at home during lockdown and it could mean for many, they could see a hike in their household bills, perhaps due to more energy use or having to upgrade broadband.
As restrictions ease, people will be likely to spend more of their cash at the local pub or treat themselves to a post-lockdown hairdo or makeover.
For the millions of furloughed Britons or those who have lost their job, as well as the many who are simply looking to cut costs, trimming down household bills could be the top of the agenda.
UK households will be looking to save money in lockdown after many were furloughed
From pruning your energy bills, to switching your broadband, we reveal simple tips on how you can save money on your everyday outgoings.
Most of the tips are relatively quick and simple to do, and could help you shave hundreds of pounds off your annual household bills.
1. Mobile bills
Mobile phone providers are known for letting their customers stay on pricey pay monthly tariffs after their initial 24 or 36 month contract has come to an end.
One way to avoid being overcharged is to set yourself a reminder on your phone so you know when your contract is due to end.
If you want to upgrade your device after the initial contract period is up, then compare prices with other networks before agreeing a new tariff to ensure you are getting the best deal.
However, if you are happy to stay with the same phone you already have, contact your provider to negotiate a new price as you will now have paid off the device cost. Many people simply don’t do this.
If you are looking to haggle with your provider to get a better deal, one thing to remember is to be prepared – research how much your bills are and how much you would rather be paying.
This means you have a clear target to work towards and won’t be side-tracked by anybody who is trying to encourage you that you are already on a good deal.
You can call your provider and advise them you are thinking of cancelling your contract as you believe you are being charged too much.
However, in this scenario you must be prepared to walk if you can’t get the deal you are after.
In most cases, your supplier will want to keep you as a valued customer and will make you a better offer, hopefully one that will satisfy how much you are looking to pay.
Even if they are not willing to lower the price, you may be able to get more texts, minutes or data for the same amount you are currently paying.
Another good option is to purchase a Sim-only deal as many come from as little as £4 a month.
If you’re looking to get a new phone completely, compare prices from different networks to see which is offering the best deal on the model you are after.
It is also worth checking before you decide how good the signal from the network is in the area, especially if you are working from home and relying on your mobile. You can do this by using Ofcom’s signal checker here.
Potential saving: £20 per month or £240 a year
Customers can often save money on their broadband deals by negotiating with their provider
2. Broadband
Having good internet is incredibly important right now as more people than ever are relying on broadband to perform at high speed when working from home.
However, broadband tends to be one of those contracts that we let roll on without ever thinking of it.
However, some providers will sneakily hike up monthly costs without giving you any benefits.
The best way to see which are the cheapest deals on the market is to use price comparison sites.
Make sure that the broadband deal you’re on caters for all you needs and that you’re not paying for super speed fibre broadband if its not something you use regularly.
In comparison, if you feel your internet speeds are too slow, see how fast your broadband is and upgrade if needs be.
Alternatively, you can call your provider asking for a better deal.
If you’re not getting the answer you’re looking for, ask to be put through to the cancellation team or the retention team.
The retention team’s job is to keep customers – this means they can usually offer much better deals than the customer service operative on the phone.
Even then, if it is not making you a good enough offer, tell it you need time to think about it and come back.
It may then up its offer or call you back with a different deal.
Again, it is also worth checking the speed of the signal in your area which you can do by using the Ofcom speed checker linked above.
Potential saving: £10 per month or £120 per year.
TV is an expense that can be forgotten about but customers should keep an eye on their bills
3. TV
TV is another expense that can easily be forgotten about but customers should keep an eye on their bills to look out for any unexpected rises.
Sky, for example, increased their prices for Sky Entertainment, which includes Sky One, Sky Atlantic and MTV, by £2 to £24 a month – an increase of nine per cent – earlier this year.
To save money, take a look at deals for new customers and compare that to what you are paying.
When you call up your provider, you can use that as a bargaining technique.
It is also worth comparing different firms offerings, for example Virgin Media and BT TV, to see who has the best deals.
One thing to consider when paying for your Sky bills is whether you need use all you are paying for.
There are many options such as Now TV, Amazon Prime and Netflix now where users can watch thousands of TV shows and films without the same price Sky charges.
Similarly, Freeview and Freesat are free to use TV services that offer a range of different channels. The only thing you will have to pay is a small fee for the box, which is usually around £10.
Most streaming services offer a months free before users have to commit to a monthly fee so take advantage of that before paying upfront.
You can also chop and change, with the ability to cancel one, while still having the other: So, one month Prime, next month Netflix, next month Disney+ and so on.
Some customers will also be able to get some months free on certain platforms with their mobile providers – for example, EE offers its users six months free of BritBox.
If you don’t watch live television, you could even choose to cancel your TV Licence.
Potential saving: £10 to £30 per month – or £120 to £360 a year
Customers are encouraged to use price comparison sites to see if they could save money
4. Insurance
Rather than just let your car and home insurance renew, as many of us are guilty of doing, see if you can negotiate with your provider to lower the price.
Most of a company’s best offers will be for new customers but it will still want to hold onto their loyal customers – once you make it aware you want to start saving some serious cash, you should hopefully be able to cut down costs.
Using comparison sites is also a sure fire way to find some of the cheapest deals on the market, which you can then use as a haggling tool.
However, not all insurers will feature on there, for example Direct Line and Aviva, so make sure you check out their prices too.
With regards to car insurance, another tip to make sure you’re not paying over the odds for insurance is to ensure that you are only paying for what you need. This means ensuring that only regular drivers are named on the policy.
Aim to protect your no-claims bonus for as long as possible. Although this could cost a couple more pounds a month on your policy, it is worth it when compared to losing it. For more top tips on how to save on car insurance, click here.
For home insurance, make sure you aren’t over-covering your property by overestimating the value of your possessions. This could mean you are overpaying each month for no reason.
It is always worth predicting as accurately as possible how much your contents are really valued at.
Potential saving: £20 to £40 per month or £240 to £480 per year.
The most expensive monthly bill for most people is their energy bill with many stuck on SVT’s
5. Energy
The most expensive monthly utility bill for most is energy with 53 per cent of people still stuck on standard variable tariffs, which are typically the most expensive of the energy bills.
In May 2020, the difference between the average standard tariff and the cheapest deal on the market was around £360, highlighting how much could be saved by customers.
The best way those on default tariffs can can save themselves money is by switching to a fixed tariff or another provider – or both.
Fixed deals will lock in prices for a year, meaning your bills won’t go up or down depending on the wholesale market movement.
If you think you’re being overcharged for your supply, one thing you can do is take a look at a comparison website which will show you the best deals you can get in your area.
Customers could save hundreds of pounds a year just by switching.
If you are happy with your current supplier but just want to save some money on your monthly bills, call them up and tell them that you are looking to pay less.
Get quotes from more than one provider so you can compare and make sure one company has not charged you over the odds.
Auto-switching sites can also be a good alternative to saving money on your energy bills. They will automatically switch you to the best energy deal available – and will keep doing so.
Some will ask for small monthly payments but others are free to use.
Potential saving: £30 per month or £360 a year.
6. Breakdown cover
Haggling with your current provider is one of the best ways to cut the cost of your breakdown cover.
Don’t always accept their first offer, unless you’re happy with it, as it could be they have more up their sleeve but will only suggest it if they are challenged.
Whilst this may seem uncomfortable at first, if you stand your ground, you should be able to get a better discount.
If you have a relatively new car, it may be that a basic cover will suffice as hopefully you will be less likely to rely on the service.
Compare prices online and speak to providers to see who can offer you the best deal.
Potential saving: £15 per month or £180 per year
Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.