Practical ways to cut costs in 2026. Rising prices, available support, and realistic strategies to manage your money during the cost of living squeeze.
·4 min read
Prices have risen sharply and many feel the squeeze. Here’s what help exists and how to ease the pressure.
Current Situation
What’s Happened to Prices
Category
Rise Since 2021
Food
~25% overall
Energy
High (though below 2022 peak)
Housing/rent
10-20% in many areas
Transport
Significant
Childcare
Rising above inflation
Impact on Households
Effect
Detail
Real wages
Still below 2021 in real terms
Savings
Many depleted
Debt
Rising for many
Choices
Heat vs eat became real
Government Support Available
Cost of Living Payments
Payment
Who Gets It
Check gov.uk
If on qualifying benefits
Automatic
If eligible
Various amounts
Depending on circumstances
Warm Home Discount
Feature
Details
Amount
£150 off electricity
Who
Low income, Pension Credit
When
Winter period
Application
Some automatic, some apply
Winter Fuel Payment
Feature
Details
Amount
£200-£300
Who
State Pension age
When
November-December
Automatic
If receiving State Pension
Cold Weather Payment
Feature
Details
Trigger
7+ days of 0°C average
Amount
£25 per cold snap
Who
Certain benefits recipients
Automatic
If eligible
Benefits Check
Commonly Unclaimed
Benefit
Estimated Unclaimed
Pension Credit
£3 billion/year
Universal Credit
Significant
Council Tax reduction
Many don’t know available
Free prescriptions
Under-claimed
Healthy Start
40%+ don’t claim
Check Your Entitlement
Calculator
Website
Policy in Practice
betteroffcalculator.co.uk
Turn2us
turn2us.org.uk
EntitledTo
entitledto.co.uk
| Time | 10 minutes |
| Cost | Free |
| Accuracy | Very good |
Key Benefits
Benefit
Worth Checking
Universal Credit
Working or not
Pension Credit
Over State Pension age
Child Benefit
Any income now
Council Tax reduction
If income low
Free school meals
Check if qualify
Free prescriptions
Several routes
Food Costs
Cutting the Bill
Strategy
Typical Saving
Switch to discounters
£50-£100/month
Yellow sticker shopping
30-75% off
Meal planning
£60/month (less waste)
Batch cooking
Cheaper per portion
Own brand products
30-50% cheaper
Reduce meat
Significant
Grow basics
Long-term savings
Price Comparison
Store Type
Typical Cost
Aldi/Lidl
Cheapest
Asda
Budget-friendly
Tesco/Sainsbury’s
Mid-range
Waitrose/M&S
Premium
Food Bank Help
If You Need Help
Available
Trussell Trust
Referral needed (from GP, Citizens Advice)
Independent food banks
Often walk-in
Community fridges
Free surplus food
Food clubs
Low-cost shopping
Energy Costs
Reduce Bills
Action
Annual Saving
Compare and switch
£100-£300
Turn heating down 1°
£80-£100
Efficient shower habits
£70-£100
Turn off standby
£50-£100
Draught-proofing
£50-£100
Get Support
Scheme
What
ECO4
Free insulation for eligible
Warm Home Discount
£150 off bill
Supplier hardship funds
Debt help
Priority Services Register
Extra support
Housing Costs
If Renting
Strategy
Potential Saving
Negotiate at renewal
Some success
Move to cheaper area
Significant
Rent a room
£300-£600/month
Shared housing
Often 30-50% less
Apply for social housing
Long wait but much cheaper
If Mortgaged
Help
Details
Extend term
Lower payments
Interest-only period
Temporary relief
Payment holiday
Short-term (costs more overall)
Remortgage
If better rate available
Help Available
Support
Source
Discretionary Housing Payment
Council
Universal Credit housing
DWP
Local welfare fund
Council
Charity grants
Turn2us search
Transport Costs
Cut Costs
Strategy
Saving
Cycle/walk more
£100-£300/month
Work from home (if possible)
£100-£200/month
Carpool
50% of fuel
Off-peak rail
30-50% off
Railcard
1/3 off
Bus pass
If cheaper than driving
Car Ownership
Consider
Action
Do you need it?
Could go car-free?
Cheaper running
Electric, efficient model
Insurance
Compare annually
Tax
Lower band vehicle
Subscription Audit
What People Pay For (Unused)
Category
Average Waste
Gym membership
£30-£50/month
Streaming services
£30-£50/month
Apps
£10-£20/month
Magazine/boxes
£10-£30/month
Insurance add-ons
Variable
Quick Audit
Step
Action
1
Check bank statements
2
List all subscriptions
3
Mark: essential, nice-to-have, forgotten
4
Cancel forgotten immediately
5
Review nice-to-have monthly
| Typical saving | £50-£150/month |
Shopping Smarter
Cashback and Rewards
Method
Return
TopCashback/Quidco
2-10% on many purchases
Credit card rewards
0.5-1% (if paid in full)
Supermarket loyalty
Points and coupons
Receipt apps
Small but adds up
Reduce Impulse Spending
Strategy
Why
24-hour rule
Wait before buying
Wish list
Instead of basket
Unsubscribe from emails
Less temptation
Avoid browsing
Only shop with list
Summary: Cost of Living Action Plan
This Week
Action
Done
Use benefits calculator
☐
Audit subscriptions
☐
Check energy deal
☐
List all direct debits
☐
Plan meals for week
☐
This Month
Action
Done
Apply for any benefits entitled to
☐
Switch energy if saving available
☐
Cancel unused subscriptions
☐
Try discount supermarket
☐
Review insurance policies
☐
Benefits to Check
Benefit
Checked
Eligible
Universal Credit
☐
☐
Council Tax reduction
☐
☐
Pension Credit
☐
☐
Free school meals
☐
☐
Free prescriptions
☐
☐
Warm Home Discount
☐
☐
Key Contacts
Service
Contact
Citizens Advice
citizensadvice.org.uk
Turn2us
turn2us.org.uk
MoneyHelper
moneyhelper.org.uk
Trussell Trust
trusselltrust.org
Monthly Savings Targets
Area
Realistic Target
Subscriptions
£50-£100
Food
£50-£150
Energy
£30-£50
Transport
£50-£100
Shopping
£50-£100
Total
£200-£500
The cost of living squeeze is real, but you’re not powerless. Check your benefits, cut the waste, and be strategic. Small changes across multiple areas add up to real money. And if you’re really struggling, help exists — use it.