Cost of living: Switching to direct debit could help Britons save on five products | Personal finance | Finance
Britons have less disposable income now than during the 2008 financial crisis, showing how difficult it has become to pay for daily expenses. Insurance expert Catherine Grayson shares five ways Britons could manage their money effectively and save much-needed pounds.
April is looking to beat household budgets, as council tax rebates and energy rebates offer some potential relief.
However, effective money management could prevent Britons from falling into poverty.
Ms Grayson, from A-Plan Insurance, shared her top money management tips on five different expenses that could help households keep crucial books in their pockets.
TV license
Current TV license fees have been frozen for the next two years at £159, and while this will save Britons in the long run, many are concerned about their current finances.
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Ms Grayson noted that these fees cannot generally be reduced for ordinary Britons who are not eligible for discounts, discounts or refunds, but changing the payment method could help.
She shared, “It may be easier to pay for this using a 12-month direct debit. This will renew automatically and therefore this stops any risk of breaking the law.
“If you choose to pay by direct debit, for the first six months you may have to pay £26.50 before it is transferred to a 12 month bill of £13.25 per month.”
Housing tax
Households in bands A to D will get a £150 council tax rebate this month, with Brits paying their tax by direct debit set to receive it automatically.
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Those using other payments should expect their local council to contact them with details of how they can claim the refund.
Households in higher tax brackets can also receive financial assistance, but Ms Grayson pointed out that spreading the cost of this costly expense could benefit Britons.
She shared: “Currently many people pay council tax manually or over 10 months as this structure may suit the council. However, you have every right to spread this over 12 months, as this will avoid 10 high payments and then two months free of charge.
Insurance premiums
Ms Grayson commented: “It can be helpful to know that you no longer need to pay your insurance premiums in one installment.
“This will register your MOT and your insurance, leaving you only needing a reminder letter containing a 16-digit reference number.
“It’s a completely straightforward process, and payments will then be deferred to ensure no breaches of the law occur.”
Utility bills
April also saw the Ofgem price cap rise by nearly £700, a devastating blow to many households with further increases expected due to the Russian invasion of Ukraine.
Ms Grayson said: “After this price comes into effect, the distribution of payments can help and you can do this by contacting your supplier.
“You may not know this but depending on the circumstances most have schemes that cap the bill at less than £100.”