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It’s the time of year when almost all our regular payments go up, but Martyn James has some tips.
Spring is here and even though the weather is still playing up, we can dare to dream about warmer days and alfresco picnics in the park.
But April is also “awful”, as this is when almost all of our bills increase at the start of the new financial year. Getting around this is tricky, but there are some things you can do to cut your costs.
It makes sense to renegotiate any contracts with wiggle room before new prices kick in (Picture: Adobe)We’ve all heard horror stories in the news about rapidly rising gas and electricity bills. Even though we don’t know exactly what we’ll be paying, it looks like bills will rise massively in July.
So now is the time to fix the price you pay for the energy you use. The bad news is, many of the best deals have been pulled... but you can still find energy fixes that are cheaper than the current (lower) energy price cap. But before you sign up, remember to check:
Duration. How long is the contract? Discount. How much are you saving over the term of the contract? Volatility. Are you tied to a deal that can go up as well as down? Exit fees. How much do you have to pay to get out of the contract early?According to regulator Ofcom, around three in ten broadband customers are out of contract – a whopping nine million people – and it’s estimated that a similar number of mobile customers are languishing on poor deals they can leave today too. Get this: it’s possible to halve your bills if you swap to a new broadband/TV package, saving up to £600 a year.
If you are stuck mid-contract, to exit without fees you’ll need to demonstrate that the business isn’t providing a good service. A good way to do this is to check your contact for the “minimum guaranteed speed”, then use a free speed checking app or website to measure this at regular times over a week or two. The most accurate one I’ve found is BroadbandUK’s broadband speed test, though there are lots more online. If the firm isn’t delivering, ask to leave without paying a fee. You can also find similar tools that measure mobile phone reception.
Water bills are set to go up by an average 5.4 per cent this year to £639, though this varies considerably depending on where you live, the size of your property or how much you use. Water meters can help reduce bills if you have a low-occupancy household, but the bigger your house or family, the more you’re likely to pay.
Alternatively, water companies offer some nifty gadgets to help you with your water consumption. Type “water saving” into your water provider’s website. You can also get reduced payments if you’re struggling financially. The WaterSure scheme can cap your bills if you’re on a low income, too.
Council tax is usually billed over ten months, with two “free” months at the end of the term. However, if money is tight you can ask the council to spread the money over 12 months instead. If your home now or in the past was in the wrong band, you could potentially claim a rebate (check with each council).
Make sure you are claiming discounts too. If you live alone then you can get a 25 per cent discount on your bill. There’s also a big list of exemptions and discounts to the tax.
Insurance and subscriptions
Insurance firms must give you four weeks’ notice that your current contract is due to expire. If you call and threaten to walk three to four weeks before the expiry of the deal you could get a major discount. Readers have reported that they’ve knocked off up to £200 or more off their bills, so be bold!
If you aren’t using subscription services and you’re wavering over cancelling, add up the total payments for a year. That should help you decide if they are worth it or not.
Martyn James is a leading consumer rights campaigner, TV and radio broadcaster and journalist. Read more from him at this link.