How to manage increasing living costs in the UK: Essential tips for 2024

In recent years, UK households have faced a significant challenge: the rising cost of living. Soaring energy bills, increasing food prices, and climbing interest rates have compounded the financial strain on many families. This blog delves into the factors driving these cost hikes, examines their impact on families and the environment, and evaluates the responses from those in power.

Understanding Household Costs

Household expenses encompass a variety of categories, each contributing to the monthly financial burden:

  • Energy Costs: Heating and lighting are essential, with electricity and gas being the predominant sources.
  • Housing Costs: This includes rent or mortgage payments—often the largest single monthly expense.
  • Transport Costs: Covers all travel-related expenses, including fuel, public transport, and leisure travel.
  • Food Costs: Essential for daily living, this covers the weekly food shopping and occasional dining out.
  • Other Costs: Encompass a broad range including council tax, water and media utilities, home maintenance, insurance, childcare, clothing, debt repayments, and leisure activities.

Managing these costs is crucial, yet challenging, leading many to overlook potential savings in areas like insurance and mortgage refinancing.

Impact on Households

A considerable portion of UK residents now find a larger share of their income swallowed by these essential costs. Particularly affected are lower-income families, who often must sacrifice other necessities. The distress and tough choices facing these families are palpable and warrant a closer examination of potential relief strategies.

Average Bills in 2024

According to British Gas, the average annual gas and electricity costs are:

One-bedroom flat: £1,309.98, or about £109 per month.

Three-bedroom house: £1796.40, or about £150 per month.

Five-bedroom house: £2,507.12, or about £209 per month.

While energy costs continue to rise, the return of fixed-rate deals offers a potential opportunity for savings. It’s important to compare current charges with other market offers, keeping in mind that early exit penalties may apply.

Additionally you can make savings by opting to pay by Direct Debit, the averages above are for pay on receipt customers and customers can save up to £90 with British Gas by moving to Direct Debit.

Environmental and Financial Efficiency

Energy efficiency not only reduces costs but also benefits the environment. Upgrading a home from an EPC rating of F to D, for instance, can save a household between £380 and £700 annually on energy bills. The push for energy-efficient homes is part of a broader initiative to reduce carbon footprints, promoting a healthier environment.

Insurance and Mortgage Strategies:

  • Insurance Renewal: Timing is crucial when renewing insurance policies. Data suggests that the optimal time to renew is approximately 28 days before the current policy expires. This timing often results in lower premiums as insurers view early renewers as lower-risk.
  • Mortgage Rate Deals: With the Bank of England’s recent shifts in interest rates, mortgage rates have fluctuated. Currently, competitive mortgage rate deals are available, particularly for fixed-rate mortgages. For instance, several lenders are offering rates below 3% for two to five-year terms, appealing to those looking to lock in rates amidst economic uncertainty.
  • House Valuations: The UK property market has seen an upward trend in house valuations. This rise can influence decisions about selling, refinancing, or leveraging property equity for home improvements.

Leveraging Technology with Habeo

Habeo offers a platform to track and manage all aspects of home efficiency and financial commitments. Users can:

  • Track Expenses: Monitor ongoing household costs, including energy, mortgage, and insurances, in one centralised dashboard.
  • Set Reminders: Utilise Habeo’s reminder system to handle renewals and payments, ensuring optimal timing for insurance renewals and mortgage refinancing.
  • Marketplace Support: Access a marketplace of services, including financial advisors and home improvement contractors, who can help optimize household spending and improve home efficiency.

Our mission is to demonstrate how making eco friendly decisions can bring you a financial benefit and reduce the admin headache of running your home.

Market Analysis and Future Outlook

As we look towards the future, market analysts predict continued volatility in both the housing and financial markets. Strategic financial planning, coupled with a proactive approach to household management, will be crucial. Habeo’s comprehensive tools support these efforts by offering insights and actionable steps to improve both financial and environmental health.

The benefits of improving your home efficiency may be linked to lower mortgage interest rates and better insurance deals as the finance sector seek to promote better eco-friendly decisions amongst UK households too so making that plan now may be the best thing we can do for long term financial savings.


The rising costs associated with maintaining a UK household can be daunting. However, with informed strategies, timely actions, and supportive technologies like Habeo, families can navigate these challenges more effectively. By understanding the landscape, utilising available tools, and making educated decisions, UK residents can mitigate the impacts of these rising costs and maintain, or even improve, their quality of life.

Habeo is currently undergoing testing and feedback with selected users and will be extending invitations to early registrations over the coming months. If you want to be one of the first then make sure you register for exclusive access today.

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