Which?: 11 ways to save on your heating bill this winter

From small jobs to big changes, here are our top tips for cutting your energy bills

WHICH? consumer research found that in August 2022, 65% of households cut back, dipped into savings or borrowed money in order to cover essential spending. And with most people’s gas boilers whirring into action this month as the temperature drops, outgoing expenses are only increasing. 

Our experts have identified a variety of ways to reduce your heating energy bills this winter. 

The big things can drastically change how much energy you use every year, while the small things can cheaply make an immediate dent in your bills during a time where a bit of help goes a long way.

Sometimes it’s simply a matter of using a new boiler setting or spending 15 minutes plugging a gap in your home that provided a welcome breeze during the summer heatwave. We’ve also listed a few more expensive, longer-term fixes. If you do feel able to, it’s worth thinking about whether any of these could suit your home.

Read on for our top tips for getting ahead this winter.

Emily Seymour, Which? Energy and Sustainability Editor, said: “Many people will be looking to save money by reducing their energy use this winter. Some easy ways to cut your bills include using radiator valves to make sure each room of your house is only ever as warm as you need it to be.

“If your home has a single room thermostat, it should be set at the lowest comfortable temperature as heating bills will rise by about 10 per cent for every additional degree you turn it up.

“Combi boiler owners can try turning its flow temperature down and the preheat setting off. Tap water will initially come out cool before it heats up, but you’ll be wasting less energy.

“If you have a hot water cylinder, you can’t make use of low flow temperatures. Instead, insulate your hot water tank with a jacket no less than 75mm thick and make sure you’ve got lagging on pipes.

“Simple steps like placing weatherproofing tape over gaps or putting down a draught excluder can guard against heat loss.”

Get our latest cost of living news and advice to support you through the colder months.

1. Check your boiler settings

Somebody turning a dial on their boiler control panel

Boilers are easy to cast as a cost-of-living villain. They’re big, sometimes noisy, most of them run on fossil fuels, and they can have a big impact on your energy bills – in fact, in most homes the boiler is the one single thing that uses up the biggest portion of your annual energy bill.

But a central heating system that’s working efficiently and using energy proportionate to your home’s heating need is still the best way to heat your home during the coldest months of the year. 

For most people, the priority should be making your boiler cost less to use, and not deferring to replacements like portable heaters. 

There’s a lot you can do to make your heating run more efficiently:

  • Get your boiler serviced. This will reduce the chance of a costly emergency repair and keep a new boiler in warranty. Plus, a well-maintained central heating system will run more efficiently, and you can ask your boiler engineer about whether your boiler’s settings can be toggled to run more cheaply. If you rent, you are within your rights to ask your landlord to arrange a boiler service every year.
  • Toggle pre-heat off. Combi boilers use water on demand, but sometimes they pre-heat water so it’s ready to get to taps quicker. This is nice, but it will keep your boiler burning more than it needs to.
  • Bleed your radiators – or ask an engineer to do it if you prefer – and install thermostatic radiator valves (TRVs) onto them so you can turn radiators off in rooms you don’t often use (more on this below).

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2. Adjust your combi boiler’s flow temperature

Combi boiler owners should look at their flow temperature. You can save up to 8% on your heating bill by turning down the temperature of the water that gets circulated around your radiators. If your boiler heats this water to its max, your boiler won’t even condense, which means it’s running inefficiently. 

Head to our full guide on how to adjust your boiler to lower your heating bill to find out more.

The Heating & Hot Water Industry Council (HHIC) recommends that people adapt their boiler settings with the advice of a boiler engineer. This is particularly true if you have a system or regular boiler that keeps water stored in a tank. Because stored water needs to be heated a certain amount to avoid Legionnella bacteria, you should only change settings with professional advice if you have one of these. 

However, if you have a combi boiler, you’ve made sure it’s safe and you’ve checked your boiler’s technical manual, you can adjust these settings yourself. 

This setting is accessible to anyone and it can be changed using your boiler controls. The flow temperature for heating is generally symbolised by a little picture of a radiator, and for hot water, a picture of a tap. Up and down arrows will change the temperature settings.

Nesta has created a free step-by-step boiler temperature tool to walk combi boiler owners through the process of changing flow temperature settings for your heating. 

It recommends a 55°C setting, but we suggest starting a bit higher initially to see if you’re comfortable with the change.  

3. Insulate your boiler’s hot water cylinder and pipes

if you have a boiler with a hot water tank, the advice above doesn’t apply. That’s because boilers that store water in a tank usually can’t manage the efficiency gains of combis as they’re not well suited to running low flow temperatures without modification. 

You shouldn’t change the flow temperature of a regular or system boiler with a hot water cylinder without consulting an engineer, because your boiler must be able to pasteurise stored water effectively to avoid bacteria such as Legionella developing.

However, that doesn’t mean there’s nothing you can do to improve your boiler’s efficiency. You’ll be using a lot of energy to heat up the water in your storage cylinder, and you don’t want to lose out on any of that. So make sure the cylinder itself is well insulated. This can be as easy as buying a jacket for about £20. It should be no less than 75mm thick according to industry standards.

You can also lag the pipes that carry water around your home for around £5 a metre. Water loses a lot of heat in transit, so it’s a small expenditure for a good long-term saving. It’s particularly useful to do it for the pipes coming in and out of the cylinder.

Lagging pipes will also reduce the risk of them freezing in a cold spell, which can be costly to repair.

Find out what to do if external pipes freeze over with our guidance on how to thaw a frozen boiler condensate pipe.

4. Automate your heating with smart thermostats

Smart technology isn’t for everyone, but if you do like using your phone, tablet or voice assistant for managing your home, then a smart thermostat will give you easy and precise control over your central heating. 

They’re designed to provide automation to help you use your heating at the best times. Whether it’s toggling your boiler when you’re nearby to benefit from it, learning your routine so it can predict the optimal times to run or even checking the weather forecast to anticipate increases and decreases in heating need, smart home heating is becoming increasingly clever.  

While many of these features are designed for your comfort, rather than your wallet, smart thermostats really come into their own when it comes to making savings if you set up zonal heating with compatible radiator valves.This means you can vary the routine and temperature of different rooms so you’re not wasting energy by heating rooms at the wrong times.

For example, you might want to programme your kitchen to get a burst of heating in the morning before you put the kettle on and your living room to be warmest in the early evening, while you’re happy for your bedroom to stay cold all day until you’re about to go to bed. All of these adjustments mean you’re saving crucial kilowatts by never heating a room you’re not actually using.

Since the introduction of new legislation in 2018, new gas boilers need to come with one of four energy-saving add-ons. Smart heating controls are one of them. But if you have an older boiler you can still buy and install a smart thermostat separately. 

Read our smart thermostat and smart radiator valve reviews to find models that will suit your needs. 

5. Use thermostatic radiator valves

If smart tech isn’t for you, you can still make significant improvements by installing manually operated thermostatic radiator valves, or TRVs. They control the heat of your home by adjusting how much hot water flows through the radiator they’re fitted to, so you can make sure each room of your house is only ever as warm as you need it to be. 

It works by sensing the room temperature and opening or closing the valve as appropriate. 

The numbers on TRVs determine how much a radiator is allowed to heat up. They correspond more to a level of comfort than a specific temperature, but as a rough guide the following applies:

0Off
* (the maintenance setting)The radiator will turn on as a protective measure when the temperature nears 0°C.
1Approximately 12°C, a low room temperature for an unoccupied room 
2Approximately 16°C, a lukewarm heat for an occupied room.
3Approximately 20°C, a comfortable heat for an occupied room.
4Approximately 24°C, a warm heat for an occupied room.
5The valve is fully open.

Use trial and error. We recommend using settings two and three to try and cut heating use, knowing that you can go higher if you’re feeling chilly.

If you’ve also turned down your boiler’s central heating flow temperature, you might find you need to open your TRVs to higher settings to reach comfortable temperatures. 

Smart radiator valves can work with smart thermostats to do this automatically. Some of them also take temperature readings to fine-tune your thermostatic system.

6. Turn your thermostat down a little

Somebody dialing a thermostat

It’s age-old advice, and for people who are already frugal with their heating it may not apply. But each degree you turn your thermostat down is energy saved. According to the NHS, temperatures as low as 18°C are healthy for most people. 

The Energy Saving Trust claims that turning your thermostat down by one degree can save you up to 10% off your heating bill. Realistically, a lot of variables affect this, but even one degree lower will move your bills in the right trajectory. 

For older people, Age UK reminds that very low temperatures can increase your risk of flu or other breathing problems, and can raise your blood pressure. When you’re older, your blood pressure takes longer to return to normal once you get cold. Try to make sure you’re keeping at least one room at a comfortable temperature for you, and keep the doors closed as much as you can to keep that room as warm as possible.

7. Only use electric heaters sparingly

We’re often asked whether people should turn off their heating completely and replace it with electric heaters. Unfortunately, it’s unlikely to be cost effective over long periods of time.

Portable electric heaters use electricity to warm the air by convection, either with an exposed heating element, or with a radiator design that transfers heat from the element through a system of fins. 

They are great at providing a quick heating fix for a short period of time, such as for a 10-minute blast on a particularly freezing morning. And if your central heating system isn’t working, they’re reliable back-ups.

It’ll take a portable heater between 15 – 30 minutes to raise the temperature of a medium-sized room by 10ºC at full blast. After that it will toggle on and off as needed to maintain temperature, based on its thermostat.

Remember that you pay for energy by the unit. With the current price cap, electricity is much more expensive than gas. So be prudent when you use your electric heater in place of gas.

They usually have rated outputs of 2 or 3kW – that’s how many they’d get through in an hour on full blast. For reference, that’s about the same amount of energy as a kettle. Heaters do generally have settings that let them run at lower outputs too. 

If you’re on a standard variable tariff, the average unit price for dual fuel customers is 34p per/kWh for electricity and 10.3p per/kWh for gas. That means that a 2kW portable heater at its full output would use 34p of electricity every half an hour. 

Read our electric heater reviews to find a model that provides good value.

8. Draught-proof for a quick, cheap fix

If you’re short on cash, there are things you can do right now to plug in gaps in your home and hold onto your heat. 

You can draught proof any gaps in your home, whether that’s keyholes, postboxes, door cracks, cavities near doors and windows, or gaps around electrical outlets and pipes. Just remember that homes do need some ventilation, so make sure you leave any purpose-built vents clear, such as window trickle vents or grills in wodden flooring.

Draught-proofing may involve putting down tape or a draught excluder where there’s a draft. Even something basic like a door snake is a help in the war against heat loss. Many of these solutions cost less than a tenner, or can be homemade. 

Other tools include:

  • Adhesive weatherproof tape made of PVC or foam to go around doors and windows.
  • Threshold seals to go on either side of doors.
  • Letterbox excluders with brush pile material.
  • Thermoplastic rubber (TPR) to fit flexibly into door and window cavities.
  • Pillows designed to fit inside an open chimney to block off draughts when it’s not in use.

One visit to a DIY shop can provide you with several small solutions that don’t break the bank and can be installed yourself.

While individual draught-proofing measures are unlikely to save huge sums from your energy bills in isolation, collectively they will make your home feel more pleasant and cosy to be in. You might even find you can comfortably turn your thermostat down a degree.

Read our guidance on draught-proofing your home for more detail about small steps to seal your home.

9. Invest in insulation

Installing roof insulation

In the long run, the key way to keep energy bills low is to trap as much as possible of the heat we generate inside our homes.

If you have the money to do it, insulation is a very good long-term investment. As energy bills go up, the time it takes to see a return on your investment becomes shorter. The Energy Saving Trust estimates that having a professional install loft insulation in a typical semi-detached home would cost around £480 in October 2022, but once it’s done you’d save £355 a year on your energy bills. So in less than 18 months you’d be making a saving.

Professional installation in a detached home would cost more – around £630 – but the savings are as much as £590 a year. And you’ll be saving around 1,000kg CO2 emissions from being released.

So it’s a win-win: you’ll waste less energy and be able to run central heating more cheaply – and break even relatively quickly. 

Plus, you’ll be ready for whatever comes next. The central heating options of the future will operate more cheaply if homes can retain heat. Technology like heat pumps are able to operate efficiently because they’re designed for well insulated properties.

Types of insulation include:

  • Loft and roof insulation. Heat rises, so trapping it from above is crucial. 
  • Floor insulation usually comes next, and it can reportedly reduce heat loss by 15%. 
  • Cavity wall insulation is useful for properties built in the last century. It’s injected into the gap between your outer and inner walls. 
  • Solid wall insulation can be placed within or outside a wall that’s not eligible for cavity wall insulation. It’s very expensive to install, so a longer term investment. 

The energy efficiency of your home or of the home you’re renting is quantified by an EPC certificate. Find out how to get assessed and what the ratings mean here.

10. Update windows with double glazing or alternatives

Windows are a source of heat loss in any home. But if you have single glazing, you’ll notice you need much more energy to heat your home sufficiently. Double or even triple-glazing windows will reduce your heating needs dramatically.

Installing A-rated double glazing could save between £95 and £115 a year on the heating bill of a typical home. However, it doesn’t come cheaply.

We ask Which? members to rate the double glazing companies they’ve actually used. 

Find out the best and worst double glazing companies for 2022 and more on how to buy double glazing.

If you need a quick fix and don’t have the money to spend, window foam seal, foam sealant or metallic brush strips can all help.

We’ve tested secondary glazing film in the past, like clingfilm for your windows, but we thought it wasn’t very resilient. It also needed re-stretching with a hair dryer periodically. 

Thick curtains across windows can make a big difference too. Drawing them creates a barrier between your room and the elements and keeps your heat inside. 

11. Explore home grants

If you’re replacing your heating system, the government’s Boiler Upgrade Scheme helps you to decarbonise with a heat pump if your home has no outstanding insulation recommendations. 

With the latest price cap, a heat pump needs to run at an efficiency of 280% to have parity with a gas boiler’s running costs. Heat pumps can run at 300-400% efficiency, so they can prove cheaper to run. 

Other grants can help if you’re in a vulnerable situation, such as:

  • Cold weather payment to top-up your energy bills during cold snaps.
  • Winter fuel payment to help people born before September 1955 pay their energy bills. 
  • Fuel Direct lets you deduct essential bills directly from income support, Universal Credit and other assistance available to you. The amount is decided by Jobcentre Plus or your pension centre.

Read our advice on home grants to find out what you’re entitled to. 

The government’s 2022 Energy Price Guarantee and Energy Bill Support Scheme will both provide households in the UK with a bit of extra help this winter. 

Find out everything you need to know about the government’s winter 2022 cost of living support and how it will be paid to you.

If you are struggling to afford your energy bills and feel you need urgent support, head to our guide to what to do if you can’t pay your energy bills.

Revealed:Cheapest supermarket to get your child’s packed lunch essentials

Aldi has been crowned as the cheapest supermarket to pick up your child’s packed lunch essentials from.

Consumer finance experts at CashLady.com conducted research into the prices of key packed lunch essentials consisting of fruit juice cartons, yoghurts, fruit, crisps and all the ingredients to make a delicious ham and cheese sandwich.  

The supermarkets were then ranked from one to nine in terms of their value for money, with one being ranked the cheapest and nine being ranked the most expensive. The items included in the costings included:  

  • Bread 
  • Cooked Ham 
  • Cheese 
  • Tomato 
  • Lettuce 
  • Banana 
  • Crisps 
  • Yoghurt 
  • Fruit cartons 

If you’re looking to whip up a balanced packed lunch for your child, to keep them fueled throughout the school day, the research has revealed that Aldi is the best place to shop.  

At Aldi, for just over £7, you can get all the packed lunch essentials to feed your child for a week- that’s £1.46 per day. 

However, ranked as the most expensive supermarket is M&S, where the same packed lunch essentials will set you back over £18, followed by Waitrose at a costly £14.85. 

Supermarket Price  Ranking 
Aldi £7.32 
Tesco £8.23 
Sainsburys £8.33 
Asda £8.43 
Lidl £8.52 
Morrisons £11.48 
Co-op £14.10 
Waitrose £14.85 
M&S £18.55 

Commenting on the findings, CashLady.com’s Consumer Finance Expert, Dan Whittaker said: “There’s a lot you may be needing to budget for, from school uniform and stationary supplies to packed lunches. Plus with the cost of living crisis upon us and energy bills about to soar, there’s no better time to save where you can.

“We’ve crunched the numbers to find the cheapest supermarket for packed lunch essentials so that you can serve up your children delicious, nutritional lunches whilst still keeping to a strict budget.”  

Fraser of Allander: Effects of inflation are not felt equally by all households

Cost-of-living across the income distribution

Not all households are equally affected by rising prices. New ONS data for the UK released in August divides price indices, expenditure shares, and inflation by income quintile, retirement status, whether or not households have children, and residence type.

As many have anticipated, the households that earn the least are feeling the effects of rising prices most keenly, Chart 1.

Chart 1: Relative CPIH price indices by income quintile, 2005-2022

* Indices are differenced from the index for households in the third quintile (the reference group).
Source: ONS

The first quintile (the lowest-earning 20% of households) faced an effective annual inflation rate of 9.8% in June, compared to 9.0% for the middle quintile and 7.9% for the highest.

Resolution Foundation’s forecast estimates that households in the lowest income decile will face inflation of 15% by October, while inflation will be 11% for those in the highest decile.
The difference in price indices across the income distribution are not new, but they have spiked this year. From 2013 to early 2022, the price index for the first quintile was about 2 points higher than for the third quintile. By June 2022, that difference had grown to 3.5 points.

In comparison, the cost-of-living crisis has impacted the highest earners least.

Household spending patterns drive different effective inflation rates across the income distribution. Food, fuel, and housing make up a larger proportion of spending for lower-income households than for higher-income households.

The largest contributors to rising inflation are housing and household services, transport, and food and (non-alcoholic) beverages. The share of expenditures on these categories falls as income increases, Chart 2.

Chart 2: Expenditure shares on selected categories by income quintile, Feb-Dec 2022

Source: ONS

This year, fuel, food, and transport comprised 64% of the expenditure of the lowest-earning quintile. The highest quintile spends 55% of expenditures on the same categories.
Lower-income households are also more likely to use pre-payment meters, and cannot spread costs across the year. High energy prices are more likely to result in reduced consumption during the winter for these households.

How does inflation affect real incomes?

Price inflation erodes real disposable incomes. In August 2022, the Bank of England estimated that real post-tax incomes will fall by 1.5% in 2022 and by 2.25% in 2023.
In a recent report, the Resolution Foundation concluded that rising inflation will wipe out twenty years of real earnings growth.

These effects are not evenly felt across the earnings distribution.

In addition to facing higher inflation, the lowest-earning households have seen a drop in year-on-year nominal earnings growth this year compared to higher-earning households. This slower wage growth will compound the effects of higher experienced inflation.

Cost-of-living for retired households and households with children

Household composition may also change how households experience changes in the cost of living, also due to differences in the composition of expenditures.

Retired households typically face higher inflation than non-retired households, Chart 3. The inflation rate for retired households has been about 0.4 percentage points (pp) higher than for non-retired households since March. This trend highlights concerns about pensioners rationing fuel this winter.

Chart 3: Inflation by household composition

Source: ONS

Unlike retirement status, whether or not a household has children does not materially change the inflation rate they face.

Cost-of-living for renters and homeowners

Housing costs contribute to rising inflation, but the rates faced differ by residency type, Chart 4.

Chart 4: Relative CPIH price indices by resident type

Indices are differenced from the index for owner-occupier households (the reference group). CPIH indices include housing costs.
Source: ONS

Similarly to price indices across the income distribution, the price index for social rented sector tenants has spiked in 2022 compared to private rented sector tenants and owner-occupiers.

In June 2022, inflation for social rented sector tenants was 11.2%, compared to 8.2% and 8.6% for other renters and owner-occupiers respectively.

The most likely driver of this difference in experienced inflation is food costs rather than housing; social rented sector tenants spend 16.3% of expenditures on food and non-alcoholic beverages. The same share is about 10% for other renters and owner-occupiers.

Subsidised renters spend a smaller share of their expenditures on housing, fuels, and transport, so these are not likely sources of the difference in inflation rates. Regardless, subsidised renters are likely to be relatively low-income, and concerns about reduced food and fuel consumption, particularly in winter, are still salient.

Rising rent and mortgage rates are also likely to exacerbate pressure on household budgets, particularly for new homeowners.

Do proposed policies to combat the cost of living address distributional inequalities?

Both the UK and Scottish governments have announced policies to tackle the cost-of-living crisis, but it remains to be seen if these policies will effectively target those most impacted by inflation.

The £2,500 price cap announced by the UK government in September is guaranteed for two years and applies to all households equally. A £400 discount on energy bills starting in October and the cancellation of green levies on fuel are also universal.

A £15 billion support package announced in May provides one-off payments of £650 to low-income households on certain types of benefits, £300 to pensioner households, and £150 to individuals on disability benefits.

Scottish Government has also recently announced policies that target the most vulnerable households. Initiatives include a rent freeze and a hold on increases to ScotRail fares. The rent freeze in particular may help some in the short-term, but is likely to reduce rental property supply and quality if not carefully implemented.

Some previously-planned policies, such as increasing the Scottish Child Payment from £20 to £25 per week, per child and extending the benefit to under-16s, will also help households with children to manage rising costs.

The full distributional effects of the the cost-of-living crisis and the UK and Scottish governments’ response remain to be seen.

This article is part of our Fraser of Allander Economic Commentary 2022 Q3.

The Cost of Caring: Report reveals families raising disabled children are ‘struggling to survive’

Stark research findings released today by national charity Family Fund show that families raising disabled, or seriously ill, children and young people across the UK now face serious financial jeopardy and are struggling to survive, due to the scale of the cost-of-living crisis.

“The Cost of Caring” covers research with 4,264 families across the UK, with a disabled child, showing that nine in 10 families are struggling, or falling behind on their regular household bills and many are forced to forego living essentials such as food, heating, basic furniture like beds, flooring, washing machines and fridges, to try to make ends meet.

Over half of parents and carers (54%) report skipping or cutting the size of their meals because there wasn’t enough money for food (a 9% increase since September 2021)  and more than one in ten (13%) say they have had to cut back on items that are essential for their disabled children. 

Four in five families (83%) raising a disabled child or young person are in debt, with rising debt levels for two in five families (43%) polled, and over 40% report they can’t afford to keep accommodation warm – a 13% increase since last December.

On average, families raising a disabled child live on £17,000 a year and spend 60 hours a week caring for their disabled children, with one third caring for over 100 hours a week. Families receive only one hour a week of respite and support, on average, and less than one in four parents and carers are able to work full time, with over half not able to work at all.

Family Fund’s report highlights the, now, unsustainable strain on families raising disabled and seriously ill children and young people , as they try to cover sky-high costs on top of severely reduced incomes due to intense caring responsibilities, three times higher costs to look after a disabled child and critical levels of debt.

With sustained cuts to support services, which have not recovered post-pandemic, families are now having to pay, themselves, for therapies and specialist equipment for their children, such as educational and sensory items and toys.

As the UK’s largest grant-making charity for families raising disabled and seriously ill children on the lowest incomes, Family Fund provides essential goods for families including kitchen appliances, clothing, bedding, play and sensory equipment and much-needed family breaks.

Last year, it delivered over 170,919 grants and services, worth over £37 million, to families on low incomes across the UK.  

Wider research findings include:

·       Almost all families raising disabled children (98%) report paying more than families with non-disabled children due to specialist needs – clothing (74%), food and groceries (73%), technology such as tablets (66%), toiletries and hygiene products (60%) and replacing worn or broken household items (60%);

·       In September 2021, families raising disabled children reported an increase in their household bills of, on average, £800 a year. By June 2022, even before current price rises, this increase was over £1,500.

·       Three in five families (62%) reported cutting back on play, leisure and recreational activities with their disabled children during the last year;

·       In the past year, 50% of families report their disabled children’s physical health has worsened and 68% say their disabled children’s mental health has deteriorated.

·       1 in 5 families report taking on more credit to keep up with existing credit commitments

Cheryl Ward, Family Fund Chief Executive, said: “The outlook for families raising a disabled, or seriously ill, child is now graver than ever. They are unsure how to cope with ever-rising caring costs with winter approaching, they are having to borrow more credit to pay for intense levels of debt and feeling more isolated than ever, with worsening mental and physical health.

“These are families on the lowest of incomes, due to caring for their children round-the-clock and having far-reduced available support services, post-pandemic.

“When caring costs have spiralled so far out of control that families are having to cut back on the very essentials their disabled child needs, something has to change.

“Along with our sector partners, we are urging Government to ensure that family benefits are increased in line with inflation, rather than reducing at a time when the escalating costs of caring are already jeopardising families’ lives.”

West Midlands parent: “How will I be able to keep my disabled child warm for medical reasons…this coming winter when I’m struggling to pay gas and electric in summer?

“How will I afford petrol, which I need as I have two children with physical disabilities including one in a wheelchair. And the cost of food, and availability of safe food for an autistic child if shortages start happening. I worry every day and night over this.”

North West England parent“Caring for our child is not the issue, she is the light of our lives. Being able to access the right care, education and support in order to provide me the opportunity to work is the key.”

The Cost of Caring features research from the charity’s last four quarterly family polls, from September 2021 to June 2022, ahead of a new September poll coming soon. 

Tesco to lock over a thousand every- day products at low prices until 2023

  • Inflation-busting move will support customers in the run-up to Christmas
  • Price lock underlines Tesco’s unwavering commitment to great value for its customers
  • Colleagues set to benefit too, with significant boost to hourly pay rates across UK stores

Tesco is today announcing a vast new price-lock commitment, freezing the prices of more than a thousand everyday products until 2023, and giving shoppers more ways to spend less and enjoy the festive season.

The products are all included within our mammoth Low Everyday Prices campaign, which covers a wide range of products and brands bought week-in, week-out – from cupboard staples and teatime favourites, to household and health & beauty products.

To help customers make their money go further during the festive season, we’re locking the price of more than a thousand of these products into the new year.

So whether it’s McCain Home Chips for those midweek dinners or a winter pick-me-up with Nescafe Original 3-in-1, our customers can count on Tesco’s price to stay the same until 2023 – helping them spend less on their shopping and more on friends and family this Christmas.

Low Everyday Prices is a key part of Tesco’s commitment to giving customers great value on their shopping – going hand-in-hand with our Aldi Price Match, great value own-brand staples with our Exclusively at Tesco brands and exclusive deals through Clubcard Prices, which together cover more than 8,000 products.

And it’s just one of the ways we’re helping customers make their money go further this Christmas. Our Clubcard Christmas Savers Scheme offers customers a bonus voucher of up to £12 when they save their Clubcard Vouchers towards their big Christmas shop. While our Toy Sale, launched this week, offers savings of up to 50% on kids favourites like Lego and Stickle Bricks, so that families can spread the cost of Christmas.


Tesco UK Chief Executive, Jason Tarry, said:
“We know times are tough for many customers right now, particularly as we head into the winter months. We hope this extended price-lock commitment gives our customers the certainty of knowing that over a thousand household favourites will stay at the same great price for months to come – helping them budget when they need it most.”


As well as helping customers, we’re today also announcing another major investment in our store colleagues – with the second hourly-pay increase this year, and a doubling of our colleague discount to support them this Christmas.

From 13 November 2022, the basic hourly rate of pay in our stores will increase by a further 20p to £10.30 (or £10.98 in London). This means hourly rates at Tesco will have increased nearly 8% this year – building on what was already a record single-year investment in store pay.

And on top of that, we’ll also be doubling our Colleague Clubcard discount to 20% during the key Christmas shopping period from 13-19 December.

This is just one part of our comprehensive package of benefits for Tesco colleagues, which also includes a recently enhanced selection of free food and hygiene products in the Colleague Rooms of our stores, so that colleagues can access a wider range of breakfast, lunch and snack items at no cost.

Notes to editors:
  • Examples of products covered by our price-lock commitment include:
ProductCurrent price – locked until 2023
TILDA PURE STEAMED BASMATI RICE, 250G£0.95
SKI STRAWBERRY MOUSSE, 4X60G£1.10
MCCAIN HOME CHIPS, 2.25KG£4.30
ORAL-B PRO-EXPERT PROFESSIONAL PROTECTION TOOTHPASTE, 75ML£1.99
HEINZ BAKED BEANS SNAP POTS, 4 X200G£2.49
NESCAFE ORIGINAL 3-IN-1, 6 SACHETS 102G£0.99
JOHNSON’S BABY COTTON BUDS, 200 PIECES£0.95
ROBINSONS ORANGE SQUASH, 1L£1.75
  • Low Everyday Prices includes over 1,000 products across larger Tesco stores. Excludes Express. Prices locked until 03/01/2023. Look out for the Low Everyday Prices roundel in-store and online.
  • A Clubcard is required to redeem Clubcard Prices offers included in Tesco’s toy sale.

One in two experiencing more anxiety about being able to pay their bills, warns British Psychological Society

The British Psychological Society has warned of a potential mental health crisis this winter as it publishes new figures that reveal one in two people are experiencing anxiety about being able to pay their bills as a result of the cost of living crisis.

The new findings lay bare the toll the cost of living crisis is having on people’s anxiety and mental health following energy price cap rise this winter and the current economic uncertainty.

The data, collected by YouGov on behalf of the BPS, reveals that 51 per cent of respondents who did not already have a diagnosed mental health condition reported feeling more anxious about being able to pay their bills than this time this last year.

One in five people (21 per cent) without a previously diagnosed mental health condition reported that worrying about money was making them feel depressed, and only just over a quarter of all respondents, (27 per cent), said they felt confident they could get by financially this winter.

Following the energy price cap rise on 1 October, and the turbulent economic situation facing the country, the BPS is sounding the alarm about the potentially devastating impact the cost of living crisis could have on people’s mental health, and the strain this increased anxiety may have on already struggling mental health services this winter.

While the energy bill support from the government is welcome, the BPS has warned currently there is not enough support targeted to those on the lowest incomes, and highlights that as well as energy bills, people are highly anxious about being able to afford food and fuel this winter, (52 per cent of all respondents were concerned about not being able to afford food/groceries over the next year, and 50 per cent were concerned about affording fuel over the next year).

Sarb Bajwa, Chief Executive of the BPS, said: “The cost of living crisis is critical, immediate and severe and disproportionately impacting those that need support the most.

“As well as the practicalities of being able to heat homes and put food on the table, people are also carrying the mental health load of living under this strain. We are incredibly concerned that many simply will be unable to cope, with nowhere to turn to get help as services are already stretched and struggling to cope with soaring demand.

“We urge the government to target support to those on the lowest incomes and benefits, and make sure that there is the necessary funding in place for mental health services so they can try and cope with the inevitable surge in demand we will see this winter.”

The survey highlighted that some groups in society are significantly more anxious about the impact of the cost of living crisis. Those already diagnosed with a mental health condition, women, young people and those from a lower socio-economic status expressed more anxiety.

Key findings reveal:

  • 62 per cent of those with a mental illness/condition reported feeling more anxious about being able to pay their bills than this time last year, causing concern about increased demand on services.
  • 44 per cent of those with a mental illness/condition also said that worrying about money is making them feel depressed.
  • 61 per cent of all females reported feeling more anxious about being able to pay their bills than they did this time last year compared with 47 per cent of males.
  • 30 per cent of females said worrying about money was making them feel depressed, compared with 26 per cent of males.
  • Female respondents were more concerned about being able to afford various household costs over the coming year, including energy bills (77 per cent of females versus 65 per cent of males).
  • Concern also differed by age, with those aged 35-44 were more likely than other age groups to say they feel more anxious about being able to pay their bills than this time last year (63 per cent of those aged 35-44 versus 55 per cent of all respondents).
  • Unsurprisingly those from lower socio-economic status groups were more concerned about being able to afford food/groceries (61 per cent of respondents in the C2DE group compared with 52 per cent overall).

U-TURN: Chancellor scraps plan to cut top rate of tax

KWARTENG: ‘WE GET IT – WE HAVE LISTENED’

Chancellor Rishi Sunak has annnounced a humiliating U-Turn on plans to slash the 45p top rate of tax for highest earners.

He tweeted this morning:

Fraser of Allander Institute: The aftermath of the mini-budget

For some in Westminster, a week in politics will never have seemed longer. Financial markets are still reeling from the announcement of the £40bn of deficit-financed income tax cuts announced last week.

The ramifications through the financial system are myriad but stem from the decisions of UKG heaping more uncertainty onto markets that were already bracing themselves for a difficult few months.

Our budget response last week referred to the decisions made by UKG as being a gamble. Tax cuts do not necessarily lead to growth, and the additional tax revenues and lower debt/deficit:GDP ratios that would come with that growth. The absence of an OBR forecast, which may have helped reassure the markets that the plans were credible, did not help (and of course, the OBR could have been less supportive of the plans than the Chancellor would have hoped for).

The upshot is that the risk that the UKG will have permanently higher borrowing has increased, leading to a fall in the value of government bonds. Inflation has become even harder to predict and with that the future path for interest rates. All this has real implications for markets that we all come into contact with, including most notably pensions and mortgages.

The tax cuts announced last week were part of a plan for growth that the Chancellor and the PM are holding firm on. The hope is that it will boost the labour supply by incentivising people to work more.

By abolishing the additional rate, it is hoped more high earners people will want to work in the UK. Whether or not it works depends on whether people change their behaviour in light of the tax cuts, or whether other factors override the increased financial incentive.

For example, for basic rate tax payers, there may be structural barriers that constrain their ability to work – the availability of childcare being an obvious example. Additional rate tax payers may not see the tax cut as being substantial enough to make them relocate, or they may not be able to due to visa restrictions.

There are promises of further supply side reforms in the coming months, including on childcare and visas, that may increase confidence that the plan is credible, but at the moment, only a notable few appear to believe it is guaranteed to succeed.

Some of the trailed reforms will apply UK wide, and changes to rules around immigration will be keenly anticipated by many businesses in Scotland.

Others, such as reform in childcare, may not apply in Scotland as provision of publicly funded childcare falls under devolved competence. Increased spending on childcare by Westminster could lead to additional consequentials to Scotland.

However, in terms of the Scottish budget, there is always the risk that additional consequentials from one area are offset by decisions to cut spending in other departments.

That appears increasingly likely. This week, UKG departments have been asked to look for savings in departmental spending, which looks like an attempt to sure up fiscal credibility from the other side of the ledger.

This leaves the Scottish Government, along with everyone else, dealing with more uncertainty than they expected just over a week ago. The Emergency Budget Response from John Swinney has been pushed back to late October, but it will be difficult for the Scottish Government to act decisively until more is known about what the UKG will do next. For that we may have to wait until late November, when we also expect to see OBR’s assessment of the UKG’s plans.

Next week, we will be publishing our quarterly Economic Commentary which will provide insight and analysis on the pressures that were already facing the Scottish Economy.

The events of the last week are having ramifications on the real economy, but there were of course multiple issues that businesses and households were already trying to deal with. Look out for our report on Tuesday 4th October.

Government support for energy bills begins for households and businesses

From today, the UK Government’s Energy Price Guarantee will limit the price households pay per unit of gas and electricity they use

  • The Energy Price Guarantee reduces household energy bills over the next two years, with a typical family paying around £2,500, saving £1,000 per year
  • Businesses, charities and public sector organisations will pay less than half the expected prices this winter under the Energy Bill Relief Scheme from October
  • Government energy support makes up the largest single component of the Growth Plan, protecting jobs and livelihoods and curbing inflation by 5 percentage points

Households, businesses and public sector organisations across the country will be protected from significant rises in energy bills, thanks to new government support taking effect from today (Saturday 1 October).

Without Government action, average household energy bills under the energy price cap had been due to rise to around £3,500 a year in October – a rise of 80% on current bills. Next year, they were estimated to increase even further to as high as £6,500.

From today, the Government’s Energy Price Guarantee will limit the price households pay per unit of gas and electricity they use.

It means a typical household in Great Britain will pay around £2,500 per year, starting this month for the next two years – saving an average £1,000 a year on their energy bills.

Households will also see the first instalment of the £400 Energy Bill Support Scheme in their October electricity bill. The discount will be automatically applied monthly in six instalments between October 2022 and March 2023.

Thanks to the government’s support, energy bills will now be close to where they’ve been for the past six months – and it will curb inflation by 5 percentage points, boosting economic growth, controlling the rising cost of goods, and reducing the cost of servicing the national debt.

This necessary intervention makes up the biggest proportion the Government’s fiscal package set out in the Growth Plan.

Prime Minister Liz Truss said: “I know people across the country are anxious about their energy bills, which is why we have acted quickly to help them.

“Livelihoods and businesses were at stake. The government’s energy support limits the price they pay for gas and electricity, shields them from massive bill increases, and is expected to curb inflation too.

“The cost of not acting would have been enormous. To make sure the British public is not left in this position again, we are also fixing the problem at its source by scaling up home-grown energy and reducing reliance on foreign supplies to boost our energy security and independence.”

The UK Government is also urging people today to stay alert to scams and fraudulent messages. There is no need to apply for the schemes, with most customers receiving today’s support automatically through their electricity bill.

Households in Northern Ireland will also receive the same support through the Energy Price Guarantee from November, with support for October bills backdated so they see the same benefit overall.

Those who might live in an area of the UK that is not served by the gas grid or use alternative fuels such as heating oil to heat their home will receive a £100 payment to support them with their energy bills.

Business and Energy Secretary Jacob Rees-Mogg said: “While Putin’s weaponisation of energy has driven energy prices to record highs, we will not let his regime harm this country’s businesses and households.

“Unprecedented government support is beginning this weekend, protecting families and businesses across the country from what was going to be an 80% increase in energy bills this winter.

“I also urge people today to stay alert to scams. This support will reach people automatically and there is no need to apply.”

British businesses have also been experiencing significant increases in energy costs, with some reports of more than 500%. Businesses, charities and public sector organisations will also be protected through the Government’s Energy Bill Relief Scheme from October over the next six months.

This support is equivalent to the Energy Price Guarantee put in place for households and similarly discounts price per unit of gas and electricity, meaning businesses and others will pay wholesale energy costs well below half of expected prices for this winter.

In parallel, the Government is also taking decisive steps to tackle the root cause of the issues in the UK energy market through boosting British energy supply and increasing independence to ensure this doesn’t happen again.

This includes the work of our Energy Supply Taskforce, a new oil and gas licensing round, lifting the moratorium on UK shale gas production, and driving forward progress on nuclear and renewables.