17 ways to save money on your household bills and living costs in 2023

As the cost of living surges at its fastest rate in almost 40 years and following a host of household bill hikes that came into force in April, our experts have answered 17 key questions on how you can cut your household expenses.

We're all feeling the pinch as Inflation hits 10.1% and interest rates on mortgages are also going up. So here are our tips.

Find out more: the Money Helper Bill Prioritiser tool can help you put your bills and payments in the right order. If you’re struggling to pay – whether it’s your rent, your mobile phone bill or loan repayments – it will tell you what to do in two easy steps before you miss a payment. 

How to cut your energy bills

Energy prices are incredibly high right now, and most households are on variable tariffs capped by the Energy Price Guarantee with little option of cheaper deals. Energy researcher Sarah Ingrams, senior sustainability researcher Karen Lawrence, senior appliances researcher Jake Massey and product testing science adviser Stephanie Kipling answer some of your most commonly asked questions.

1. Should I try to switch energy supplier at the moment?

Usually, we'd advise everyone to compare prices and switch energy supplier or tariff to get the best deal. But these aren't normal times and switching isn't a viable option for many at the moment. Suppliers aren't selling cheap deals, some aren't accepting customers at all and most variable tariffs cost pretty much the same.

The majority of us are on variable (also called out-of-contract or default) tariffs at the moment. If your fixed tariff has ended, or you've been moved from a failed supplier to a new one, you'll be on a variable tariff.

Since 1 October 2022, the government’s Energy Price Guarantee (EPG) has been in place. This protects households from the worst of recent price rises, but bills are still higher than before. The average electricity unit rate is around 33.2p per kWh, the average gas unit rate around 10.3p per kWh. A household with 'typical use' paying for a dual fuel variable tariff by direct debit is around £2,500 a year, or £208 a month. 

The EPG is expected to be higher than the price cap from July 2023. The price cap used to limit our bills before October 2022 and is set by energy regulator Ofgem. If this happens, variable or default energy tariffs will return to being regulated by this price cap instead.

The price cap is set based on wholesale rates and limits what suppliers can charge for each unit of energy.

This doesn't mean your bills won't increase - it could mean the opposite. Wholesale gas prices have been falling, so it's predicted the price cap for a 'typical' household could be around £2,063 per year from July. Suppliers may also be able to afford to offer cheaper tariffs.

If you're still on a fixed-term deal, don't switch too early. You're unlikely to find anything as cheap yet.

• Find out about the Energy Price Guarantee, price cap and what they mean for your bills

2. My energy direct debit has gone up - what should I do?

Your direct debits are not your energy bills. They are a set amount your provider takes from your bank account each month to cover the cost of the gas and electricity you use, which will go up and down each month. 

Your actual bill combines a daily standing charge for each fuel you use, plus the energy you've used charged at a unit rate per kWh. The money from your direct debit is used to pay this. Sometimes you may be in credit to your provider, sometimes in debt. This happens because you'll use far more energy in some months (typically in winter). It should balance out over a year, and your company should review your direct debit to check it does.

Reasons your direct debit payments have increased might be: 

• if you've moved onto a pricier deal (for example if your fixed tariff has ended and you've moved onto an out-of-contract variable tariff automatically, or your energy company has gone bust and you've moved to a new one); 
• if you’re on a variable tariff and the rates have increased to the point your supplier calculates your direct debits no longer cover the cost; 
• if your payments were based on an estimated use (for example, if you moved into a new home, so couldn't give accurate figures) and you're using more energy than predicted when you give meter readings;
• or if your supplier has noticed your energy use has increased.

If you don't understand why your direct debit payments are going up, ask your supplier. If you don't agree (for example, if you think your current payments will cover your bills despite your increased use or the higher rates of a new tariff) you can ask for your monthly payments to stay the same.

If you are unable to pay your higher energy bills, help is available. Contact your supplier in the first instance, as they may well have support schemes. Depending on your circumstances, help may also be available from the government or other local grant schemes.

Cost of living grants are available for low-income households. Find out whether you're eligible.

• Find out more: how to complain if your bill is wrong

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3. What's the most energy-efficient way to heat a room if I don't want to put the central heating on?

Central heating is generally the most cost-effective way to heat your home, but make sure it's working efficiently and use timers, room thermostats and thermostatic radiator valves (TRVs) to control which rooms are heated and when.

Set your thermostat to the lowest comfortable temperature: we estimate turning it down by just 1°C can save around £100 a year.

If you only need to heat one room, a portable heater can be cost-effective. Convector heaters, including oil-filled and oil-free radiators, are best for heating a room for a few hours or more, while fan or halogen heaters are better for a shorter blast of heat to warm you up quickly. Choose a heater with a decent thermostat and timer to avoid overheating and save money.

Portable heaters are nearly 100% energy efficient, so you get what you pay for in the energy you use. But they’re 2-3kW electric-fuelled devices, so they’re not cheap to run.

• Find out more: how to use heating controls and thermostats to save on your heating bills
• Find out more: how to buy the best electric heater

4. What's the most energy-efficient way to cook?

Electric ovens, whether part of a cooker or a built-in oven, are more energy-efficient than gas. Similarly, electric induction hobs are the most efficient as they supply heat only to the pan, and not out into the kitchen; electric ceramic hobs are second best, while gas trails in third.

But because gas is cheaper than electricity, your energy bills will be lower if you cook on gas.

Our tests show that air fryers can save energy and money compared to using an oven and other appliances. This is because heating a smaller space requires less energy. Microwaves also cook some small items quickly and efficiently, so are a good option for keeping costs low.

• Find out more: comparing the cheapest ways to cook

5. Could buying an energy-efficient appliance really make that much difference to my bills?

Absolutely. Check out our free 'how to buy the best' guides (including how to buy the best tumble dryer and how to buy the best fridge freezer), which list the running costs of popular models.

All our energy cost data comes from our independent lab testing, where every appliance we review is tested in real-world scenarios to measure how much energy it uses. We find big differences between seemingly identical A-rated machines, and even B and C-rated machines. You could save hundreds of pounds a year by factoring this in when buying new appliances, and even more over the life of the appliance.

• Find out more: Which? Eco Buys

6. Are there any cheap ways to insulate my home?

While some energy efficiency upgrades need professional installation, there are other quick and cost-effective DIY ways to insulate your home. Our top five recommendations are:

1. Insulate the loft
2. Install draught proofing
3. Insulate hot water pipes and tanks
4. Fit secondary glazing
5. Add cosy furnishings

• Find out more: are you eligible for an insulation grant?

How to pay less for broadband, phone contracts and insurance

Paul Lester, senior home editor, Yvette Fletcher, principal telecoms researcher and Sam Richardson, money editor, advise on how to save on your bills.

7. My broadband costs a fortune, should I switch?

If you're out of contract - it's an opportunity to save money and can also mean a faster connection.

If you still have standard broadband (also known as ADSL), switching is an opportunity to upgrade to fibre. Fibre broadband can cost the same as standard broadband - or less - plus it's more reliable.

Out-of-contract customers stand to make significant savings of up to £200 on mobile, broadband or TV packages.

• Find out more: use our broadband comparison service to check the deals available to you
• Or discover 10 ways to save on your broadband and TV bills and check our expert pick of the best broadband deals.

8. Am I wasting data - and money - with my mobile phone contract?

It's worth keeping on top of your data use to make sure you're on the best mobile phone deal. It's increasingly common for providers to offer high, or even unlimited, data allowances, but the average UK consumer uses just under 6GB per month.

Deals with high data allowances aren't always more expensive so this might not be a huge factor in your choice of provider. Our mobile phone comparison service lets you set a minimum data allowance and explore deals by price - you can use it to check whether the amount you're currently paying is reasonable, and find a new provider if you want to make a switch. Check our pick of the best Sim-only deals, where prices start from around just £5 amonth.

If you’re with one of the big four - EE, O2, Vodafone or Three, you could also be one of millions who stand to save over £200 a year on their mobile bill.

• Find out how you could save money on your mobile phone bill
• Make sure you're taking advantage of mobile perks that can save you money
• And discover how going Sim-only could save you hundreds on your next phone contract 

9. How do I haggle with my broadband or mobile provider?

If you're happy with the provider you're with, you might feel reluctant to move to get a better deal. Negotiating means you can stick with your current package and pay less.

Haggling can sound more daunting than it is - broadband expect and invite customers to do it. If you don't fancy a long call, most providers allow you to do it via email or live chat.

The key is to shop around first to see how much you could save elsewhere, as this will be a vital tool when negotiating with your provider. Check our guides below for tips.

• Find out more: how to haggle for the best broadband deal
• Find out more: check out the best mobile phone and Sim-only deals and arm yourself with the best deals from competitors

10. How can I cut my insurance bills?

As your car or home insurance renewal approaches, use comparison sites to see if you can get cheaper quotes than your current insurer is offering. If you can, ask your insurer if they can match or beat the best quote.

Even if you're not nearing your renewal date, it can pay to check what your insurer's rivals are willing to offer to switch early. If the difference between competitors' quotes and what you're currently paying is more than the cost of cancelling early (cancellation fees are typically around £50) it might be a way to save money.

Paying annually for insurance will often be cheaper than paying monthly.

Check your cover level and strip out any optional extras you don't need. Similarly, increasing your voluntary excess will reduce your premium, but make sure you can afford to cover it in the event of a claim.

Young and inexperienced drivers tend to pay the most for car insurance. Adding a more experienced 'named driver' to your policy can reduce the premium, as their lower risk will be taken into account.

You could also consider black box policies. These use GPS devices or smartphone apps to track how you drive, meaning the insurer can give you a more tailored price.

• Find out more: how to find cheap car insurance

How to save on food and shopping

Senior money and shopping editor Ele Clark, gardening editor Ceri Thomas, consumer rights editor Stephen Maunder and senior computing editor Lisa Barber help out with your food, shopping and gardening questions.

11. Food prices are rising - how can I keep my grocery bills down?

There's a big difference between prices at different supermarkets - each month we compare the UK's biggest grocers to reveal the cheapest supermarket.

Discounters Aldi and Lidl are unfailingly the cheapest, but if you prefer the range of a bigger store and the convenience of online deliveries, Asda is your best bet - it's been the cheapest 'big four' supermarket for more than three years.

Regardless of where you shop, always use a shopping list to avoid picking up things you don't need (it also helps to avoid shopping when you're hungry); scrutinise the 'special offers' to check whether they'll really save money; and consider swapping big brands for own-label products. Buying less meat and fish can also mean cheaper food bills.

Which? has also launched a unique monthly supermarket inflation tracker, which can help you spot the foods going up in price fastest and compare inflation across eight of the biggest supermarkets. 

• Find out more: how to save money at the supermarket

12. How do I grow my own food?

You can grow fruit and veg even if you don't have a garden by using pots and window boxes. You can grow herbs on the windowsill and perhaps look into renting an allotment in your area.

May is a busy time in the veg garden as you can plant tender veg, such as courgettes, sweetcorn and tomatoes, outside. You can also sow salads, beetroot, carrots and much more for plentiful crops for months to come.

• Find out more: Which? advice on growing fruit and veg

13. Should I buy second-hand/refurbished tech to save money?

It depends. There's a strong second-hand and refurbished laptops market but with caveats. Reconditioned Windows laptops are very good value, but make sure the one you buy is compatible with Windows 11 if it hasn't already been updated (Windows 10 will only be supported until 14 October 2025). Our Windows 11 compatibility checker will help.

If you're interested in a Chromebook use our Chromebook update checking tool to find how long it will continue receiving important updates.

If you're looking to upgrade your existing laptop because it no longer receives security updates or is running too slowly, you could save money by turning it into a free Chromebook - you will need to install ChromeOS Flex.

Apple stops supporting Macs once the latest version of macOS they can use is no longer updated. Second-hand Macs are more expensive as they hold their value, but look out for ones that are a year or two old as people look to upgrade.

There are similar caveats with second-hand mobile phones. iPhones have a long support life, but make sure it's a newer device. Many Samsung phones, including the premium Galaxy range, get five years support from launch, as do Google's Pixel phones. Other brands can offer as little as two. In general, it's important to do your research if you're thinking of buying second-hand Android, and use our mobile phone support tool to see how long a model has left.

iPads get five or six years of updates. Other tablet brands vary considerably, with a little over two years for some Lenovo and Huawei tablets, and upwards of five for Amazon Fire devices. Use our tablets support tool to search for models. Find out more about refurbished iPads, including where to buy and what you need to know. 

A refurbished TV isn't a bad idea if you buy from the manufacturer or a trustworthy retailer: Amazon Renewed has refurbished TVs, as does Appliances Direct. Panasonic has its own eBay outlet. Be wary of buying from a private seller on eBay, although if the TV has an issue that wasn't stated in the listing you can get your money back under eBay's terms of service.

• Find out more: how to buy a second-hand TV

14. What do I do if a retailer goes bust?

Spend any outstanding gift cards as quickly as possible, as retailers are legally allowed to refuse these once in administration. If your gift vouchers are refused, make a claim in writing to the administrators - you should be able to find out who they are on the retailer's website, and you can use our template letter to claim a refund for vouchers from a bust company.

If you've got returns to make, there's no guarantee you'll be able to get your money back - but it's worth writing to the administrator (as swiftly as possible) to request this.

For faulty goods, you may be able to get a replacement or a refund in the normal way if the company is in administration but still trading. If the company isn't trading, you'll need to claim to the administrator. You could also try claiming on an extended warranty if this was provided by a third party, or the manufacturer's guarantee.

If you paid by credit card you can make a claim for unwanted or faulty goods under Section 75 of the Consumer Credit Act. If you paid by debit card, you can try making a chargeback claim with your bank.

• Find out more: what to do when a retailer goes into administration

How to save money on fuel

Senior cars researcher Daljinder Nagra shares his tips.

15. How can I drive more efficiently to use less fuel?

Driving as smoothly as possible and preserving momentum will improve your overall fuel economy. Look further ahead so you can better anticipate traffic and reduce unnecessary acceleration and braking. Braking wastes energy used to get the car up to speed.

If you drive a manual, shift up gears as early as possible without labouring the engine. Newer cars often have an indicator on the dashboard showing the most efficient time to change gears. Many automatic cars also come with an Eco driving mode, which will alter when the gearbox shifts to minimise consumption.

On colder days, it's better to drive your car immediately (but gently) rather than letting it warm up while stationary. Modern engines warm up very quickly, so not only will it get up to temperature quicker - reducing the potential for engine wear - you'll also use less fuel.

Air conditioning and heated seats use a lot of power, and regular use can have a small but noticeable effect on your fuel bills. However, using air conditioning occasionally can prevent it developing problems - around once a week is fine.

Check tyre pressures regularly. Even if yours are only slightly under-inflated, your engine will work harder to turn them, which can have a big impact on overall fuel economy. Check your wheel alignment checked at a garage from time to time. Potholes and bumps can cause gradual misalignment, which increases energy use and tyre wear. 

Using a sat nav can help. Newer devices and apps help you avoid fuel-sapping traffic jams and many can calculate 'eco' routes, designed to be the most economical way to your destination, if not necessarily the fastest or shortest.

• Find out more: money-saving driving tips

How to get help if you're struggling

Money editor Reena Sewraz explains your options.

16. I'm worried I won't be able to pay my bills. What do I do?

Government cost of living help

Pensioners, those who receive certain means-tested benefits and those who receive disability benefits can expect further cost of living payments. 

The first payment of £301 for low income households getting certain benefits has been sent to most households, with another £300 due in autumn, and a final £299 during spring 2024.

A disability payment of £150 is due to be paid in summer 2023. Those eligible for the pensioner payment are due to receive £300 during winter 2023-24.

The government started giving energy discounts of £400 to every UK household in October 2022 to help with the soaring cost of energy - this ended in April 2023.

• Find out more: everything you need to know about the government's energy support

Extra council tax support

If you're struggling to pay your council tax bill, contact your local council as soon as possible. You can spread your payments over 12 months, rather than 10, or you might be granted a one-off discount if you still can't pay.

If you're on a low income, live on your own or with someone who's disregarded for council tax, or get benefits, you may be eligible for a council tax reduction - but this will depend on whether you fulfil your local authority's eligibility criteria, so contact it to find out more.

Check if you're eligible for benefits

Check if you're eligible for pension credit - a weekly benefit that gives extra money to help with living costs if you're over state pension age and on a low income. It's also a gateway into other benefits, such as council tax support and cold weather payments.

If you're 74 or older and you or your partner receive pension credit, you can also apply for a free TV licence. This used to be free to all over-75s, but is now only for those claiming this benefit.

If you claim Universal Credit but find your payments aren't enough to cover household bills, there are schemes you may be eligible for - but their availability can depend on where you live and what your circumstances are. Cold weather payments and WaterSure bills cap, for instance, could help reduce monthly bills.

Help with other household bills

No matter what type of bill you're worried about, the first step is to talk to your provider - the sooner they know, the sooner they'll be able to work out a plan.

• Find out more: how to get free debt advice

17. What's the cheapest and safest way to borrow money?

Check whether you have a fee-free overdraft. The providers that don't offer this often charge eye-watering APRs of up to 40%, so switch accounts if you need to.

If you have a decent credit history and are confident you'll be able to clear the balance in full at the end of the month, a 0% purchase credit card could do the job. These deals currently offer interest-free spending for up to 24 months. Most providers offer a 'soft search' before you apply for a deal so you can see your chances of being accepted and the type of offer you might receive without harming your credit score.

If you need a cash loan for under £3,000 a 0% money transfer credit card could be more effective than a traditional loan (loan rates on smaller sums are usually high). These allow you to move money from your credit card to your bank account for a one-off fee (normally up to 5%).

With a credit card you will need to make at least the monthly minimum repayment - normally a percentage of your outstanding debt. Missing a minimum repayment will be recorded on your credit report which can bring down your credit score.

If you need to borrow more, a cheap personal loan could be better. You'll need a good credit history to get the best interest rate. You will have to make fixed repayments every month and the credit isn't revolving like on a credit card - so you won't be able to dip back in and spend what you have repaid.

A loan of £10,000 taken out over five years at a rate of 4.8% APR (the best rate at the time of publishing) would cost you £187.33 a month, and you'd pay back £11,239.80 in total.

• Find out more: best personal loans

This story was originally published on 26 October 2021. It was updated on 15 May 2023 to reflect the latest advice.