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With energy price hikes kicking in, family budgets are at breaking point.

British Gas raised its prices on August 18 while customers of ­Scottish & Southern Energy and E.ON face increases from next month. In fact five of the six big suppliers have announced price hikes – and it is not just power costs that are rising.

The Consumer Prices Index, which tracks how the prices of hundreds of items including food, alcohol and household goods change, rose to 4.4 per cent last month. Yet there are ways you can ease the pain without reducing your standard of living...

SAVE ON ENERGY BILLS

If you do not keep a close eye on gas and electricity prices you could be paying way over the odds as there is a difference of £411 ­between the cheapest and most expensive tariffs. The current cheapest tariff is npower’s Sign Online 23 deal, costing a typical user about £980 a year.

If you are worried about costs rising, a fixed tariff might be your best bet. EDF Energy’s Fixed Saver 2 is the cheapest fixed tariff ­available right now and costs on ­average £1,009 a year.

CUT MOBILE COSTS

More than 2.5 million people have never changed their mobile phone contracts, according to Mobilife.com. The site claims the average consumer can save £262 a year by making sure they are on the right deal for their needs.

SHOP FOR CAR INSURANCE

Motorists are wasting more than ­£2.4billion a year by not shopping around for a better deal, according to moneysupermarket.com. ­Research by the comparison site reveals 7.3 million drivers stay with their existing insurer even though they could save £333 on average by switching.

KEEP PETROL BILLS DOWN

Filling a typical 50-litre petrol tank costs £9.61 more than a year ago, adding £40.81 to the monthly petrol spend of a two-car family. Use petrolprices.com to find the cheapest fuel where you live.

You should also make sure your car is as light as possible, so clear out items you are carrying around unnecessarily. If you have a roof rack but aren’t using it you should take this off to reduce drag.

SLASH FOOD BILLS

Use the website mysupermarket.com to see how much your regular shop would cost at different ­supermarkets and make sure you are getting the best prices. The site claims it can cut 35 per cent off your grocery bills, saving a typical user about £1,000 a year.

HUNT OUT BARGAINS

Use money-off vouchers and ­discounts whenever you can. ­According to Halifax, Britons use them to save £51billion a year, with the average adult saving a massive £1,196 a year. More than one in 10 admit haggling so do not be afraid to ask for money off, especially if you are making a big purchase. Try the websites vouchercodes.co.uk and ­myvouchercodes.co.uk

Case Study

‘We hunt for all the best prices’

As the cost of living rises, Ashley and Nicola Bryant, top, are keeping their spending to a minimum by watching every penny that goes out.

Ashley, 44, a product designer, said: “You can definitely feel the effects of higher prices.

“It used to cost me £50 to fill up my car a year ago. Now it sets me back £62. Food costs are steeper too.

“We are really careful about money, though, and I keep a spreadsheet of all our costs so we are always looking at ways to bring bills down without affecting our standard of living.”

Ashley and Nicola, 37, from Cardiff, who have two children, Ruby, seven and Libby, three, have just used comparison site Confused.com to slash their home insurance from £422 a year to £232.

They have also cut £150 a month off their mortgage costs after moving to a cheaper fixed rate deal with the Woolwich.

And they have protected themselves from energy price hikes by locking into a fixed rate tariff with E.ON.

Ashley added: “We haven’t got money to burn so it’s really important we keep costs down ­wherever possible.”
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.mirror.co.uk/advice/money/2011/08/28/finding-it-tough-to-pay-rising-fuel-bills-here-are-six-ways-to-save-115875-23377073/#ixzz1WNIDVKqX