Ten savvy ways to save money this winter

The dreaded winter heating bill and huge hikes in mortgage costs are driving many households into despair.

Britain is grappling with the worst cost of living crisis in a generation – and we’re just at the start of it.

So what can you do now to genuinely reduce your bills?

There are some sneaky savings that will make life this year that bit more tolerable and help you save potentially thousands over the next 12 months.

1. Home-heating hacks

We should all know by now to turn the thermostat down one degree. The Energy Savings Trust estimates your annual heating bill increases by about 10% for every degree you turn the thermostat up. Don’t forget to bleed the radiators.

Set your boiler correctly. As Which? says, you only really need to have your boiler on its highest setting in the very depths of winter. Otherwise your boiler is needlessly heating water up to a very high temperature and wasting energy.

Remember to stop heat escaping. An open fireplace lets £65 of hot air escape up the chimney. Woollen “chimney sheep” draught excluders start at £20.

Windows lose about a fifth of your home’s heat. Close the curtains as soon as the sun goes down. Put clingfilm on your windows for extra draught exclusion. Thermal curtains keep some of the heat in, but cost between £20 to £50.

2. Slash your electricity bill

The fastest and easiest way to cut your electricity bill? Switch all your lights to LED and cut your lighting bill by nearly 90%. Bulbs are now widely available for less than £1.

3. Go back to the office this winter

A typical home uses about £7 a day of gas during the coldest months of the year (depending on the size of your home, age of boiler, etc). If your commute costs less than that, and you don’t buy £3 coffees and £6 lunches, then it might just be worth showing your face in the office. Switching off your home computer should also save another 50p a day.

4. Save £85 haggling over broadband

Don’t be nervous. Which? polled 5,000 readers, and while just over half didn’t challenge their broadband and mobile phone provider, those who did saved an average of £85 annually. And they said they found it quite easy. A third managed to continue with the 12- or 18-month “introductory” offer after it expired.

5. End the home insurance rip-off

Many homeowners have a naive loyalty to the home insurance policy sold to them years back by the bank or building society when they took out their mortgage. Some are charged as much as £1,000 a year for insurance that can be found for £250 with a few clicks on a comparison site.

6. Take hundreds off your monthly mortgage bill

If you’re sinking financially, ask the lender to extend the term of your mortgage loan. Say you have 12 years left on a £150,000 loan. When your current fix ends and new rates (of about 6%) kick in, the cost will be about £1,470 a month. But if you extend the loan to 25 years, the cost would drop to less than £975 a month.

Alternatively, request a switch from “repayment” to “interest-only”. On a £200,000 loan at 6%, switching to interest-only cuts the monthly bill from £1,289 to £1,000. But you will, of course, not be paying the loan down.

7. Stop wasting food

Sainsbury’s estimates that British households chuck out 914m potatoes, 733m tomatoes and 728m carrots each year. One in five people say they don’t really know how to cook.

Top tips? Never head to the supermarket without planning your meals for the week, says Lesley Negus of the ThriftyLesley food blog, and don’t get sidetracked down the aisles buying stuff you don’t need and that will probably end up in the bin.

Jamie Oliver posts free budget recipes for families along with shopping checklists on his website.

8. Do a benefits check

Millions of people are missing out on thousands of pounds. Check what’s rightfully yours at the Turn2us website; all the UK’s debt advisers recommend it. It also has advice on getting grants and help with energy bills.

9. Wash your clothes in cool water

Detergent manufacturers say there’s really no need to set your washing machine above 30C or run it for longer than 60 minutes for most clothes. Towels and sheets may need 40C but that’s all, according to Persil.

10. Pay in cash

Tap-and-go is ubiquitous and super convenient. Try going back to the 90s and paying in cash; watching £100 in notes slip through your fingers brings a sobering reality to your spending.

Have two bank accounts – one with your core direct debits (rent, gas, electricity, etc), so you can get a proper idea of what you have left after they have been deducted; and another just for spending.