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Cost of living crisis tips

With the Bank of England raising interest rates, millions of British homes could face debt for years to come. But there are ways to reduce the impact of the cost-of-living crisis.

It feels as though the UK cost-of-living crisis has been with us for nearly a decade, even though we only began to feel its effects in late 2021.

In May 2023, the Bank of England (BoE) raised interest rates from 4.25% to 4.5%. This is the 12th rise since December 2021 and puts the Bank Rate at its highest level since the peak of the global financial crisis in October 2008.

Unfortunately, this strategy by the BoE to curb rising inflation now means that the average Brit faces higher mortgage payments, higher rents, and food inflation. The question on all our minds is, when will the UK cost-of-living crisis come to an end? Will food prices ever come down?

People have had to cut back on spending just to afford basic amenities such as food, water, and heating. Family budgets are stretched thin, given that lots of employers are also reluctant to increase wages in tricky times.

It doesn’t matter whether you’re a high or low-income household, this is affecting us all. The good news is, there are some mindful strategies to help you cope in these tough economic times.

Managing your finances

Making a budget is the first step towards taking control of your finances and coping with the cost-of-living crisis. A budget can help you keep track of where your money is going, cover the essential costs, and trim out any frivolous expenses.

Creating a budget is straightforward. Start by calculating your total income for the entire month. After you’ve written this down, make a list of everything you’ve spent your money on this month. Even if it’s a cup of coffee before work, add it in. Then jot down essential payments such as your:

By being honest with yourself, you’ll get a clear idea of how much you’re spending. Your budget will also help you identify any frivolous purchases you’re making, show where you can cut back on these, and direct your money into your savings account, or perhaps offset your debts.

How to reduce the cost of food

It’s a nasty shock when you get to the checkout of your local supermarket, just to find that the prices of the same grocery items you bought last month have risen yet again. But despite growing concern over food poverty in the UK, you can still make some reductions.

Energy saving tips

While the energy price guarantee did take some sting off the huge energy prices this winter, British homes are still spending large amounts on their utility bills. Saving on water and electricity is crucial if you want to free up money, as the gas and electricity prices forecast remains high.

Loan repayments

If you’ve taken out a loan, missing a repayment can have a negative effect on your credit score and affect your finances further down the line. That’s why it’s important to meet your loan repayments on time. You can start by:


If you’re currently struggling with your mortgage payments because of the cost-of-living crisis, there are a few options to carefully consider.


Whether it’s life, pet, or car insurance, premiums can be difficult to deal with, especially during testing financial times. To manage your insurance premiums, you can start by:

Money-saving tips

Aside from financial hacks on grocery shopping and loan repayments, saving money can also help cushion you from the effects of the UK cost-of-living crisis. Let’s explore five money-saving tips you can adopt today.

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