UK households urged to save £800 a year with 6 changes | Personal Finance | Finance
Simple switches this spring could save households over £800 across the next 12 months (Image: Getty)
UK households could save more than £800 over the next year by making a handful of simple financial changes, as new research highlights the impact of “spring cleaning” your finances. With April just around the corner and Spring in full swing, 60% of respondents agreed that the change in season encourages them to have a clear out, not just of their homes, but of their finances too. According to Smart Energy GB, spring is the perfect time for households to reassess their spending habits and make small but impactful financial swaps that can lead to long-term savings.
Smart Energy GB is an independent, non-profit organisation that “helps households and small businesses across Great Britain to understand how smart meters can benefit them, their families and the environment.” The organisation has teamed up with John Gathergood, Professor of Economics at the University of Nottingham, to calculate the savings that could be made if you spring clean your finances today, and with 62% of respondents saying they are more likely now to shop around to cut costs, it is no surprise that these savings could be substantial.
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84% say the work of the Bills Boss in their household is invaluable (Image: Getty)
His research found that six straightforward changes could help typical UK household save over £800 per year. That’s equivalent to around 47% of one month’s average take-home pay for an adult, or roughly four months’ worth of an average household council tax bill. All six actions are one-off changes that are said to start delivering savings immediately and continue to do so over time, without requiring any ongoing lifestyle adjustments.
These include turning the thermostat down by one degree, tracking energy use and using energy flexibly with a smart meter, cancelling unused subscriptions, changing broadband provider and searching for new insurance policies rather than automatically renewing.
When it comes to energy bills, almost half (46%) of smart meter owners said that taking part in an energy reward scheme has saved them money. Nearly three in five (59%) of those who have a smart meter agreed it encourages their household to be more energy efficient, with 62% saying they saved money as a result. In fact, smart meter owners believe that their smart meter has helped them save £130 a year on average, according to the new research.
At the heart of many homes is a so-called “Bills Boss”, the person responsible for keeping finances in check. The research showed that 65% of UK households have one, taking charge of tasks like cancelling unused subscriptions, comparing insurance deals, and monitoring energy use.
Nearly half of “Bills Bosses” regularly cancel unused memberships, while 44% shop around for better insurance deals instead of automatically renewing. 22% also said they use smart meter displays to track and manage their energy consumption more closely.
84% of respondents said the work of the “Bills Boss” in their household is invaluable with over half saying making savings from clever financial switches feels rewarding.
Victoria Bacon, Director at Smart Energy GB, said: “Our research celebrates the Bills Bosses this spring, the people who go the extra mile for their households to make savvy savings.
“Even small swaps at home can make a difference and getting a smart meter is an easy way to have clear oversight of your energy use, helping you to find ways to save money on your bills.”
Smart Energy GB has also partnered with journalist and broadcaster, Kate Thornton, who describes herself as a “Bills Boss”, to help Brits navigate their financial spring clean.
She said: “I’ll happily admit I’m the Bills Boss in my house.
“I’m always on the lookout for smarter ways to save money whether that’s reviewing my subscriptions, switching broadband provider for a better deal or keeping an eye on my energy usage with my smart meter display.
“It might not sound glamorous, but getting on top of your household bills can make a real difference, as can teaching your family the tips and tricks, too.
“I love the satisfaction of knowing I’m making my money work harder – it is the financial equivalent of feeling smug after a gym class!”
