Financial Changes Coming This Winter

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Winter can be a worrying time for many of us when it comes to paying energy bills to stay warm, even more so this year with the cost-of-living skyrocketing. We all deserve to live in a warm and cosy environment when it’s cold outside – thankfully, there are changes set to take place in the coming months that will ease the pressure on our bank accounts. We’ll take a closer look at some of these changes, what they mean for you and a few tips on how to keep warm in the colder months. 

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Winter fuel payment 

The winter fuel payment is being introduced to help people manage the cost of their heating bills this winter, as the cost-of-living increases and energy bills get harder to manage for most of us, especially the most vulnerable. It is an annual payment that is paid to households that have people over the age of 66 living with them. The payment is currently at £100-£300 which is to be used to pay your bills to allow you to heat your home to a comfortable and healthy temperature. The payment may be less for those that live in care homes, and depends on various other factors too, like whether you benefit from pension credit or income support. 

If you have received this type of payment before, it will be automatically paid to you from September as the cold weather sets in. If you would like to apply for winter fuel payments, you can do this online or over the phone. 

National insurance changes 

The amount of national insurance you pay will be reduced this winter, which is great news for those of us that are struggling to make ends meet. When you’re employed, either by another business or you work for yourself, you will pay national insurance tax on what you earn. You pay into this so that you can benefit from a state pension and various other benefits like maternity pay. 

In April, national insurance payments increased to 1.25% - this was implemented so that the government could increase spending on health and social care. This November, the increase will be reversed, meaning that we will have more of our income left to spend. Although, unless you are well paid, the impacts on your bank account may be modest, even the smallest amount can make a difference this winter. 

Energy Price Cap 

We are all preparing ourselves to feel the pinch this winter, but thankfully, there are measures in place that mean energy bills cannot increase more than most can afford. Before this price cap, energy bills were set to rise in both October and January, just as the cold really sets in. Not only has a cap been put in place that means energy bills will not rise as we first thought, but there is also a one-off fuel payment being given to households as a discount on their bills. This is something that many people will welcome because even though there is a cap in place, it will still be difficult for a lot of households to cope with the rise in the cost of living generally. 

Winter saving tips 

The changes that we’ve looked at above are measures being taken to help households manage their bills no matter their income. They mean that we can all live comfortably, and healthily throughout the cold weather, without having to worry about how we’re going to pay our bills. If you’re looking for additional ways in which you can make your own financial changes this year to make your money go further, here are some top tips to help you stay warm and cosy. 

Use less energy 

This is one of the most obvious ways that you can save money this winter. Turning your heating off when you leave the house is essential, this means you won’t be racking up a bill when you’re not home to benefit. You should also turn your heating off at night when you’re asleep – you can wrap up warm in your duvet and set your heating to a timer so that it heats your home ready for when you need to get up. It can be tempting to turn your thermostat up when you want to feel the warmth quickly, however, this uses more energy. Turning your heating down by as little as two degrees can make a huge difference to how much you pay each month. 

Turn off appliances 

Turning off an appliance when you’re not using it is essential when it comes to bringing down your bills this winter. We’re all guilty of leaving our computer monitors or TVs on standby when we’re not using them, but this can have more of an impact on your monthly bills than you might think! Leaving lights on is also one of the main causes of rising energy bills – if you’re out of the house, turn them off. If you leave a room, get into the habit of turning the lights off to save you a bit of cash! 

Insulation 

Your heating is not going to work efficiently if the rest of your home isn’t insulated correctly. If you’re struggling to warm your home in the winter months, take the time to work out where you are losing heat from. Most of the heat lost from your home will take place through the windows, so make sure they are sealed correctly, and choose glazing that specialises in keeping the heat in. Heat can also be lost through the roof and walls of your property, which is why insulation is key. You should also identify draughts and do your best to eliminate them – you will soon feel the benefit, and you’ll find you need to use less energy to heat your home. 

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