Money Matters: Switched-on consumer can save money

Published on Friday 5 September 2008 22:53

SCOTS staying with their incumbent energy provider and not using direct debit could be paying an average of £519.47 more than they have to, following the latest round of energy price hikes. Energy prices have risen by over 40 per cent this year, after Scottish Power and Npower last week became the last of the big six providers to raise their prices. But households across the UK can still save up to 63 per cent by moving to the cheapest tariff available, according to moneysupermarket.com.

The British Gas Click Energy 5 online dual fuel tariff remains the best-value deal across the UK. In the north of Scotland, the average household moving from the region's incumbent provider's standard deal could cut their bill by 518.96 to 857.21 a year, down from 1,376.17. In the south of Scotland, the same move would reduce the annual bill from 1,372.93 to 852.94, a saving of 519.99.

"It's more important than ever not to be lulled into thinking you will automatically get the best deal with your current provider," warned Scott Byrom, utilities manager at of moneysupermarket.com.

Online tariffs continue to lead the way in terms of value, with monthly direct debit offering the best discounts, but Byrom warned that online products are likely to increase in price in the next few weeks. With more hikes on the way, households looking for security could opt for fixed tariffs, said Byrom.

Scots lead the way on domestic budgets

SCOTS are the UK's best budgeters, new research has suggested. One in ten Scots claims to set a budget every day, compared with a UK average of one in 12, with just 5 per cent finding it difficult to stick to a budget, against 9 per cent across the UK as a whole, according to PayPal. Scots are also most likely to opt for the old fashioned paper and pen approach, with 62 per cent using this method rather than website tools (13 per cent) or spreadsheets (17 per cent).

On average, more UK adults are setting basic household budgets than a year ago, said PayPal, with 62 per cent doing so on a monthly basis and 8 per cent every day. But one in five still relies on credit or long-term savings to meet basic living costs.

"British households have seen financial commitments change significantly over the last year and with energy prices soaring, mortgage payments still high and the cost of food increasing at a record pace, it is encouraging to see people trying to keep their financial house in better order," commented Carl Scheible, managing director of PayPal UK. "But it's concerning that so many people claim to keep to their budget, yet still rely on credit cards or savings for basic living costs."

Savings lessons learned young

THE extent to which savings habits are developed from an early age has been revealed in research conducted by Nationwide. It found that of the UK adults that saved as a child, 71 per cent do so on a regular basis now.

In contrast, just 45 per cent of those who didn't save when they were growing up do so regularly now.

Unsurprisingly, more than nine in ten who saved as a child think their early adoption of savings habits helped them to appreciate the value of money in adulthood. Of those who didn't save in childhood, 69 per cent admit this contributes to a poor appreciation of the value of money.

"Starting the savings habit young is important and clearly influences consumers' propensity to save in later life," said Matthew Carter, Nationwide's director for savings. "Habits die hard."