Reduce your living costs

Every year, we help hundreds of people struggling with rising living costs, one of the most common reasons people reach out. Whether you're feeling the pinch now or planning ahead, these actionable tips, tools, and resources can help you save money and ease financial stress.

The good news? There are practical steps you can take to ease the strain. Below you'll find simple, proven ways to reduce your living costs, alongside tools, grants and resources that could help right now.

What Do We Mean by "Cost of Living"?

The cost of living refers to how much money you need to meet your basic needs: housing, food, utilities, transport, childcare and healthcare. But it can also include everyday expenses like clothing, phone bills or household products.

In a recent survey, 1 in 5 people told us:

“I can’t keep up with bills like energy, petrol, and groceries.”

That’s why it’s so important to explore ways to take back control.

10 Practical Ways to Cut Your Living Costs

1. Track Your Spending and Set a Realistic Budget

Understanding exactly where your money goes is the first step. Use a budgeting app, spreadsheet or even pen and paper to track:

• What’s coming in (wages, benefits, etc.)
• What’s going out (bills, rent, food, travel)
• Where you can cut back without impacting essentials

You can use this tool to help you understand your money, or our online budget planner.

Even identifying a few unnecessary expenses, like subscriptions you rarely use can free up extra cash each month.

Tip: Barclays research found UK households waste around £500 a year on unused subscriptions.

So, if there are streaming services or gym memberships that you are not getting good use out of, now's the time to ditch them, or to make a note to cancel them ahead of renewal.

2. Be Bold - Ask for a Better Deal

Don't be afraid to haggle or switch providers. You might be surprised how often it works.

Here’s where to start:

• Contact broadband, mobile or TV companies before renewal and ask for discounts
• Check if you're eligible for social tariffs on broadband or water
• Use comparison websites for energy, insurance and mobile deals

Find more tips to help you get the best deal here.

3. Cut Energy Bills by Making Small Changes

Turning your thermostat down by just 1°C can save around £80 a year.
Layering up indoors and insulating draughty areas makes a big difference too.

Other low-cost ways to reduce energy use include:

• Switching appliances off standby (saves ~£40/year)
• Using LED bulbs (up to 90% more efficient)
• Washing clothes at 30°C and only with full loads

Did you know?

You could be eligible for grants or schemes like the Warm Home Discount or energy supplier hardship funds.

Households could get up £350 this year to help with rising energy prices. There is also the Warm Home Discount Scheme, which could help you get £140 off your electricity bill this Winter.

If you’re struggling with housing payments, local authorities can award a discretionary, limited and temporary housing payment to claimants if existing benefits do not cover housing costs.

See more tips to help you keep warm this winter. 

4. Plan Smarter at the Supermarket

Your food shopping is one of the biggest costs you have to budget for. By looking for ways to save money, you may find increased food costs easier to deal with. Save money by preparing and cooking your own meals as this is generally cheaper than buying takeaways or ready meals, and healthier too!

Try:

• Planning weekly meals and sticking to a list
• Buying supermarket own-brands
• Cooking in batches and freezing meals
• Swapping meat for cheaper plant-based options

Find more tips to eat well for less here.

5. Save on Fuel and Transport

If you drive, a few changes can help your fuel go further:

• Lighten your car load where possible
• Use apps like PetrolPrices to find the cheapest local fuel
• Consider lift-sharing or combining errands into one trip
• Tyre pressure can also affect fuel efficiency - it’s important to check your tyre pressure regularly, you can find your car’s correct tyre pressure here.

Where practical, try walking, cycling or using public transport instead. It’s cheaper - and better for your mental and physical health too.

6. Make Your Home More Energy Efficient

Some upgrades take investment but can lead to big savings over time.

Consider:

• Replacing old appliances with energy-efficient models (A++ rating)
• Draught-proofing doors and windows
• Air-drying clothes instead of using a tumble dryer, for savings of up to £40+ a year
• Consider replacing the lights in your home with LED bulbs which use 90 per cent less electricity than traditional incandescent lights and last ten times longer
• Find out which appliances use the most energy in your home.
• Almost all electrical appliances can be turned off at the plug without upsetting their programming. You may want to think about getting a standby saver or smart plug that allows you to turn all your appliances off standby in one go.

Free energy efficiency checks or grants may be available through your local council.

7. Save Water Where You Can

Even reducing your daily shower by one minute can make a difference.

Try these water-saving tips:

• Taking 4-minute showers could save a typical household £45 a year on their energy bills.
• Turn off taps while brushing your teeth
• Install water-saving devices (like shower timers or aerators)
• Save around £20 a year on your energy bill by using your washing machine more carefully. Try a 30-degree cycle instead of higher temperatures and only wash your clothes when you have a full load.

If you're on a water meter, these changes can cut bills significantly. Find out how saving water at home can help your wallet and the environment and how you can cut your water bill.

8. Make the Most of Your Home

If you own your home, there may be opportunities to boost your income.

For example:

• Rent out a spare room (tax-free up to £7,500 a year under the Rent a Room Scheme)
• Offer your driveway for parking via platforms like JustPark
• Explore downsizing or remortgaging if monthly costs are too high
• If you’re finding it hard to pay your mortgage, take a look at MoneySavingExpert’s advice.

Even if you rent, moving to a more affordable area could save money, just be sure to factor in transport costs.

9. Don’t Miss Out on Support

Thousands of people in the UK miss out on help they're entitled to.

Use benefit checkers or speak to us to find out if you're eligible for:

• Universal Credit, council tax support or other welfare benefits
• Energy grants and discounts
• Free school meals or childcare support

We can also help with emergency grants in certain situations, just get in touch. 

Check what benefits you’re entitled to, what help you can get with your energy bills and what support is available for essential costs: https://www.citizensadvice.org.uk/debt-and-money/get-help-with-the-cost-of-living/ 

10. Speak to Ben for Personalised Help

We understand how overwhelming money worries can feel. That’s why we offer free, confidential support, tailored to your situation.

We can help with:

• Benefit checks and grant applications
• Access to our SilverCloud “Space from Money Worries” programme
• One-to-one guidance to help you manage your budget and reduce stress

Remember, if you’re struggling to make ends meet, we’re here for you. We can help you to maximise benefits, explore grants available and get you back on track with your finances. Get in touch with us to see how we can support you.