Managing the cost of living

When we talk about the cost of living, we mean the everyday bills and expenses that we can't live without. 

This includes things like household bills, groceries, transport, rent or mortgage payments and other essentials. 

Balancing these costs can be challenging, but there are things you can do to stay in control and help your money go a little further.

One of the most useful ways to manage the cost of living is to create a budget. This should be based on a full view of your income and outgoings each month.

Once you can see where your money is going, you might be able to spot areas where you can cut back and save a little money. 

Take a look at our guide to money management for more information. 

Benefits and other government support can help if you're out of work or on a low income, but you may be eligible for other kinds of support as well. 

For example, people living alone may be able to claim a council tax discount, while parents of young children could be eligible for free or discounted childcare. 

You can use a free online benefits calculator Opens an overlay [Will show a security message first] to check whether you're eligible for support you may not currently be claiming.

It might also be useful to take a look at the UK Government's guide Opens an overlay [Will show a security message first] to the different types of benefit you may be able to claim. 

What is the energy price cap?

The energy price cap is the maximum amount energy suppliers can charge for the standing charge and each unit of energy you use, if you’re on a standard variable tariff. The industry regulator, Ofgem, sets the cap and alters it when wholesale energy prices change.  This can mean your bills go up or down, even if your energy usage doesn’t change.

Reducing your energy bills

It sounds simple, but the best way to reduce your energy bills is to use less energy. You can do this by making small changes, such as lowering your thermostat slightly or turning devices off rather than leaving them on standby.

You could also make some investments to reduce your energy costs in the long run, such as buying energy efficient electronic products and insulating your home. 

Government support

You may also be eligible for some government benefits such as Cold Weather Payments and the Great British Insulation Scheme. Check the UK Government's website Opens an overlay [Will show a security message first] for more information about current benefits and eligibility. 

There's a range of things you can do to reduce the amount you spend on groceries. 

• create a weekly food budget to help you spot saving opportunities
• consider buying items in bulk and freezing them so they last longer
• compare your local supermarket's prices against other brands in the area.

Remember, every small saving helps. If you spend £10 less on groceries per week, you'll save over £500 in the course of a year. 

Support for low income households

If you’re struggling to pay for food, your local food bank may be able to help. They can also provide essential household items like toiletries or cleaning products. 

The Citizens Advice website offers more information about food bank eligibility and how to get a referral.  Opens an overlay [Will show a security message first]

Whether you're a driver or you take public transport, the cost of travel can be expensive. 

Money saving tips for drivers

• compare fuel prices at your local petrol stations
• take advantage of loyalty schemes offered by some retailers
• keep your tyres inflated - too much or too little pressure on your tyres can increase the amount of fuel your car uses.

Money saving tips for public transport

• find out if you or your family members are eligible for any railcard offers Opens an overlay [Will show a security message first] to reduce ticket costs
• try to book tickets several weeks in advance
• if you commute to work, find out if your employer offers any travel perks such as park & ride or cycle to work schemes. 

If you're finding it hard to keep up with your rent or mortgage repayments, it's important to tell your landlord or mortgage provider. If you start missing payments, you could be at risk of eviction, repossession or damage to your credit score. 

Help with rent

If you’re struggling to pay your rent, get in touch with your landlord or letting agency as soon as possible. If your rent isn’t paid, the money owed is called 'rent arrears'. These are priority debts, which mean you should sort them out first, before tackling other debts – to avoid the risk of eviction.

Create a budget and work out how much you can afford to pay. Contact your landlord or letting agency, tell them you’re taking steps to deal with the situation, and offer to pay what you can at this stage.

The debt charity StepChange provide free sample letters Opens an overlay [Will show a security message first] to help you to give the right information to your landlord. 

If you’re worried about rent arrears or eviction, Shelter Opens an overlay [Will show a security message first] or Housing Rights Opens an overlay [Will show a security message first] (Northern Ireland) can help you to understand your rights and what to do next. 

Help with your mortgage

If you’re worried you won't be able to make future mortgage payments, or if you're already in arrears, your mortgage lender should be able to help. 

If you’re a first direct customer, we’re here to provide mortgage payment support. Whatever your situation, we can help you put a plan in place.

If you need to talk to us please call us on 03 456 100 186.

If you haven't found what you're looking for, find all the details on who you need to speak to by visiting our Contact Us page.