Martin Lewis has shared tips on how to cope with the cost of living crisis as bills and price rises batter the bank accounts of Brits from next month.
The financial guru shared advice on how the UK can avoid soaring costs set to come into effect in April, such as an average £693 rise in the energy bill cap from April.
Tax rises and inflation will also play a factor, as will the war in Ukraine. Vladimir Putin's war has meant that sanctions put in place by the UK government will have a knock-on effect on the price of oil and gas.
While deemed necessary to impact the Russian economy, it does mean that petrol prices are already soaring to record highs, further impacting Brits in a hugely difficult time.
With all this in mind, the tips shared by Lewis may be of vital importance to many in the coming months during the cost of living crisis.
Why is it important to make payments in March?
It is important to make payments now before payments go up in April.
April brings the start of the financial year and with it a new budget by chancellor Rishi Sunak. The budget is expected to address the rises in the cost of living and inflation.
Already announced in the previous budget was a National Insurance tax hike - a 1.25 percentage point increase - and Ofgem has since confirmed it is increasing its price cap by £693 from £1,277 to £1,971 from April 1 - a rise of 54%.
These payments we can't do much about, but some other necessary ones, like Vehicle Excise Duty (VED), prescriptions and energy bills can be pre-paid now before the rises come into effect.
VED will be cheaper in March than it is in April, and the combination of stockpiling energy and paying an NHS prescription prepayment certificate (PCC) could save Brits a small fortune.
You can get ahead of the following bills:
- Energy bills
- Water bills
- Mobile phone bills
- Council tax
How can I help myself save money?
One of the stark takeaways from Lewis' advice was that Brits should try and take matters into their own hands as they look to save extra cash.
Some government help will come through a council tax rebate of £150 for people in the tax bands A-D. However, the responsibility of being in the right tax band is not the duty of the HMRC or your employer, but yours. You could miss out on the payment if you are not in the right tax band.
To help, MoneySavingExpert has a free Tax Code Calculator.
Similarly, Lewis encouraged people in households with an income of less than £30,000 to check if they are eligible for benefits.
"It is important for me to say to anybody who is struggling out there right now, if you have a household income of less than £30,000, then my rule of thumb is that it is definitely worth spending ten minutes on a benefit calculator to see what kind of benefits you could be getting."
If you are also unable to pay your energy bills, it is up to you to sort a form of payment with your supplier.
Brits can stockpile energy
Brits on old prepayment meters can stockpile energy now before prices go up even further.
Stockpiling is paying a large payment in one go, instead of a usual and more regular top-up. The advantage of this is that you buy the same amount of energy all at once, but do so when it is at a cheaper rate. If you buy the same amount of energy but after the price rises come in on April 1, you will pay more.
Lewis explained: "That means if you max out your top-up in March before the rate goes up, that's what you'll get, even if you then use that energy in April.
"So you can extend the cheap rate we have now for longer by maxing your top-up if you can afford it - and I know not everybody on prepay can."
With the huge price rise in energy now merely weeks away, Brits should be checking if they can stockpile energy.
Of the big energy suppliers contacted by Money Saving Expert, only Scottish Power said the trick would not work.
Sadly, those on direct debit plans can't stockpile energy.
