Cost of Living payment — Martin Lewis sends urgent warning to ALL mobile phone users; plus money saving tips

This blog is now closed

This Cost of Living blog is now closed.

But we have returned with more up-to-the-minute news on the Cost of Living crisis - and more from Britain's favourite financial expert, Martin Lewis.

Click here to follow our brand new cost of living blog.

How to instantly block out draughts in your home

Budgeting whizz  has shared their draught hack in a  online. 

They said: “If you have a draught coming through your window cracks.”

“Stick a piece of paper in between to stop the cold getting through”

For this you may need to fold the paper a few times to make sure it fits into the size of your gap.

It’s also important to bear in mind that the length of your paper may not match the length of your window so you may have to layer pieces of paper on top of each other to block the full draught. 

Free childcare

If your child is aged three or four and you live in England.

In this instance, you could be due 15 to 30 hours free childcare a week.

The childcare must be with an approved childcare provider, such as a registered childminder, nanny or home care worker.

It stops once your child starts reception at school, or reaches compulsory school age.

You can apply for the help on the government's website online or through your local council.

If you don't know who you local council is you can use the government's locator tool found on its website.

It's worth noting there are different schemes in Scotland, Wales and Northern Ireland.

Saving money by living in eco home

Chris Marsh quit renting conventional houses five years ago and has lived in miniature eco homes ever since.

Last year he decided to take things one step further and build one of his own,  reports.

He now spends his days in the 140 sq ft property in the grounds of his pal's property in Riding Mill, Northumberland.

While Chris pays a fee to use the small plot of land, he is no longer a tenant paying a landlord rent in a traditional sense, and he is completely mortgage-free.

His monthly expenses come to just £230 - hundreds of pounds less than when he rented a two-bedroom house in Hexham.

How to reduce your petrol usage and save money

 are encouraging drivers to develop a smooth driving technique which could reduce their petrol usage and save them more money.

They said: “Developing a smooth driving technique is a great way to save on fuel.

“If you’re approaching traffic lights, for example, slow down early so that they may have changed by the time you reach them, meaning you might not need to stop at all.

“Anticipate the road in front of you and ease off the throttle and maintain momentum rather than braking hard and then accelerating again.

“Change up and down multiple gears at a time and change to the highest suitable gear as soon as you can to avoid over-revving.”

Urgent warning issued to all drivers filing up vehicles with petrol or diesel

Drivers are now being warned to expect to pay more at the pump as retailers increase fuel prices.

The average price for a litre of petrol on UK forecourts on Monday was 148.8p, according to Experian.

While diesel averaged at 170.4p a litre on Monday, having fallen to 170.3p on Wednesday and Thursday last week.

This week, the RAC has warned that forecourt prices have failed to fully reflect a fall in recent wholesale prices.

The RAC said retailers make more money out of drivers from every litre of fuel they sell by “keeping pump prices artificially high”.

Households to be hit with largest water bill increase in 20 years

Households will see the largest hike in their annual water bills in nearly 20 years when they rise to an average of £448 this spring.

Water UK said the 7.5% increase would see customers pay around £1.23 per day on average, from April in England and Wales.

This is an increase of 8p per day, or an average of £31 more than last year’s charges.

Experts are warning that the rise could prove to be the tipping point for the one in five customers already struggling to pay amid the cost of living crisis.

But Water UK argued that water bills remained lower in real terms than they were a decade ago.

Higher interest rates mean to encourage savings

Lifting interest rates is meant to encourage people to save, rather than spend, which in theory should help bring rampant inflation under control.

The Bank indicated that it was likely to continue raising interest rates this year, although economists at Deloitte believe it has already done 80 per cent of what it needs to do. 

Traders are now betting interest rates will peak at 4.5% next September, before falling gradually again.

Different mortgage calculators

MoneySuperMarket.com

MoneySuperMarket's calculator requires you to input how many people are purchasing the house, your income and any guaranteed bonuses.

Based on your circumstances, it will tell you how much you should receive and the maximum you're likely to be offered.

Which?

Which?'s calculator asks how many people are applying and how much their incomes are.

The calculator provides an estimate of what you can afford and gives you a figure to show what your monthly repayments might be.

Barclay's quick affordability calculator

Barclay's calculator asks for the number of applicants, income, regular expenditure, the reason you want a mortgage and the size of your deposit.

It tells you how much you can get and gives you an overall rough property budget.

How much can I borrow for my mortgage?

Most mortgage calculators calculate how much you can expect to borrow from the bank.

However, these are just an estimate, the actual amount will depend on the lender and circumstances.

Bear in mind that while house prices have dropped for several consecutive months, lenders are short and interest rates have increased.

Rising rates and the cost of living crisis have meant fewer people are looking to buy a home or move home - badly impacting the housing market.

Tens of thousands of households have just weeks left to claim up to £325

The help comes as part of the newest round of £421million funding provided by the government through the Household Support Fund.

Councils have been given a slice of the new funding on offer, which will be given out to struggling households to help them with the rising cost of bills and food.

The scheme was first established last year, extended for the second time in the March budget and for a third time in November to help those on the lowest incomes with the rising cost of living.

Each council gets a different portion of funding depending on the size of the catchment area, population, and need.

The vouchers or grants on offer vary by location so you'll have to check to see what you can get and how your council will pay you.

For example, North Yorkshire County Council is giving people either £85 or £325 in free e-vouchers.

Residents can then use these vouchers for food shopping and other essentials.

Over 23,000 eligible people will have received a letter from the council containing a code for them to redeem their voucher.

What is child benefit?

If you’re a parent living in the UK and you’re responsible for a child who’s under 16, you can claim child benefit.

This benefit is aimed to help you with the costs that come with raising children.

With it, you also get National Insurance Credits that count towards your state pension.

Parents claim £21.80 a week for their first child and then £14.45 is added for any extra child they’ll have.

Payments are usually made every four weeks.

Find more information on child benefit here.

Today’s interest rate increase – a visual guide

The Bank of England confirmed interest rates had been hiked from 3.5% to 4% today in a bid to tackle high inflation.

As visualised below, this comes after a slew of massive increases to the base interest rate in 2022.

Brits to be hit with massive water cost increase this Spring

Brits are facing ANOTHER bill hike this Spring, as the price of water soars.

Water UK said the 7.5% increase would see customers pay around £1.23 per day on average, from April in England and Wales bringing average total costs to £448.

This is an increase of 8p per day, or an average of £31 more than last year’s charges.

Water UK director of policy Stuart Colville said: “With an average increase of around 60p a week, most customers will again see a below-inflation increase in their water bill.

"However, we know that any increase is unwelcome, particularly at the moment."

Find out more here.

Rent to buy scheme could save you money

The Rent to Buy scheme is where tenants can pay up to 20% below market rent in order to save for a deposit.

The scheme is only available in England and is there to support those looking to get on the property ladder.

To be eligible, you must:

• have a job
• be a first-time buyer
• be able to pay rent and save for a deposit simultaneously

However, you can only apply for properties in the scheme – which excludes anywhere in London.

You can view these properties on different letting agent websites or simply call them up for more information.

The initial tenancy agreement will last for two years, but it may be possible to extend it.

You’ll be able to buy your home as soon as you have enough to secure a mortgage.

Get free food with this handy app

Too Good To Go connects hungry Brits with food chains and supermarkets that have leftover food which is set to be thrown away.

With Too Good To Go, shoppers can buy the food at a discounted price, making sweet savings.

You pay through the app and get given a slot before closing time to go and pick it up.

What you get will depend on your location and what has sold at that shop or café that day.

The app is free to download so it's always worth checking what's available - you never know what you could get.

How to get cheap veg as prices soar

Supermarket Lidl offers shoppers the chance to bag themselves a five kilo box of fruit or veg for just £1.50.

The discount supermarket sells bundles of imperfect produce due to be chucked out through its Waste Not scheme.

The contents of your bargain box will vary each time as each bundle is put together on the day by Lidl’s in-store "freshness specialists".

The boxes aren’t available all day, so you'll have to keep your eyes peeled.

When in stock, the goods will be up for grabs from opening until midday. 

After 12pm, the remaining boxes are given to local charities through Lidl’s surplus food programme, Feed it Back.

But note, availability varies, and not all stores will have them.

How long does it take to claim child benefit?

It can take up to 16 weeks to process a new child benefit claim.

It may be even longer if you're new to the UK though.

Child benefit can be backdated for up to three months.

When will Brits receive first chunk of £900 cost of living payment?

From spring this year, the first chunk of the  will be paid directly into claimants’ accounts.

Unlike last year’s help, this cost of living payment will be paid in three, not two, instalments.

More than eight million people will get the help directly to their bank accounts, and the £900 help will be paid over the financial year.

This is so hard-up households will get a “consistent support offering throughout the year,” the DWP said.

Will you be affected by today's interest rate hike?

The Bank of England upped interest rates by 0.5% today, meaning Brits paying off their mortgages could see an increase in payments.

Those on a fixed-rate mortgage won’t be impacted until they come to the end of their fixed period and have to sign another deal.

Other mortgages, such as tracker or standard variable rate (SVR) mortgages, could be impacted straight away.

Are you currently paying off a mortgage?

How to claim £500 in FREE supermarket vouchers with this government scheme

Luton residents can get their hands on up to £500 in electronic supermarket vouchers as part of the government's Household Support Fund.

To be eligible for the cash residents must:

• Have savings of less than £6,000 AND
• Are in receipt of certain eligible benefits OR
• Have a household income of less than £34,100

And those eligible benefits are:

• Jobseeker’s allowance (including those not on Universal Credit)
• Employment and support allowance (including those not on Universal Credit)
• Income support
• Pension Credit
• Tax credits (child and working tax credit)
• Council tax reduction
• Universal Credit
• Housing benefit only
• Carers allowance

Find out more here.

Bedford Borough residents can get £85 in bill help this winter

As part of the government's Household Support Fund, councils across the country are offering free cash and bill help to struggling Brits.

Bedford Borough Council is giving out £85 free cash to spend on energy and water bills as well as food.

More than 50% of the funding will go to families with children who qualify for free school meals - though many more will qualify.

Those receiving the following benefits can also apply for the cash:

• Pension Credits
• Universal Credit 
• Child Tax Credits
• Working Tax Credits
• Income Support
• Income Related Employment and Support Allowance
• Income Based Jobseeker's Allowance.

However, you will want to be quick, the deadline to apply is February 28.

Free debt advice

If you’re in debt there are plenty of services you can take advantage of and they offer free advice on how to manage debt.

Most of them can offer you free guidance and help in person, over the telephone or online.

•  – 0800 138 7777
•  – 0808 800 9060
• – 0800 138 1111
•  – 0808 808 4000

How will your mortgage be affected by today's interest rate increase?

The Bank of England once again increased interest rates today, from 3.5% to 4%.

But will your mortgage be affected?

Your mortgage rates could go up following today's hike - but how much it will rise depends on the type of loan you have.

Those on a fixed-rate mortgage won't be impacted until they come to the end of their fixed period and have to sign another deal.

Other mortgages, such as tracker or standard variable rate (SVR) mortgages, could be impacted straight away.

Find out more here.

Today's interest rate increase - a visual guide

The Bank of England confirmed interest rates had been hiked from 3.5% to 4% today in a bid to tackle high inflation.

As visualised below, this comes after a slew of massive increases to the base interest rate in 2022.