What to do NOW to protect your finances as households face quadruple bills blow

HOUSEHOLDS face being hit with a quadruple bill blow just as the winter approaches. Energy bills are expected to rise in October, inflation is up, train fares could increase by 4.2% next year, and mortgage rates may shoot up too. This all sounds pretty worrying, but getting prepared now could help protect your finances from the worst of it. Here are all the steps you can take NOW… Sign up for the Money newsletter Thank you! Energy bills Cut down on your energy bills by moving to a tariff below the price cap Credit: PA Energy bills are expected to soar to the highest level in three years in October. Analysts at well-respected energy research firm Cornwall Insight are predicting the energy price cap to increase by 4%. The energy price cap is the maximum amount providers can charge per unit of energy. It means a typical household will be facing a yearly bill of £1,729, up from £1,663 – an increase of £66. If you’re on a fixed energy tariff, you won’t see your bills go up straight away – but you could be in trouble if you’re about to roll off your contract. You’ll also see the bill rise immediately if you’re on a tracker tariff, which changes regularly based on either the cost of wholesale energy or the price cap. Most read in Money You could make sure you don’t get hit with a huge increase in October by fixing your energy bill now. Several tariffs are under the energy price cap right now, so it’s worth locking in. For example, there is the Fuse Energy August 2026 Fixed 18m v3 tariff which is around £161 cheaper than the current price cap. Just remember that if you’re on a contract already, you may need to pay an exit fee. These can range from around £50 to £75, which could eat up any savings if you’re not careful. You could also try to cut down on your energy usage during the winter months. For example, you could winter-proof your home now so you don’t need to have your heating on as high or as often. This could mean improving your insulation by draught-proofing your doors and windows, blocking any gaps on your home’s exterior, and checking your loft and roof insulation levels meet the recommended depth standards. Mortgage rates Mortgage rates could go higher again this year if interest rates rise Credit: Getty Expectations have risen that the Bank of England could raise interest rates before the end of the year. This would push up mortgage rates too, and some lenders have already been hiking their rates in anticipation. The average two-year fixed rate is now 5.6%. In January, before the war broke out in the Middle East, the average rate was 4.83%. Someone who took out a £200,000 mortgage with a 25-year term in January would be paying £1,150 a month. But the same homeowner now would be paying £1,241 – an increase of £91 a month, or £1,092 a year. If your mortgage is coming to an end in the coming months, you should start looking for a new deal now. It’s usually worth looking from about six months before your deal ends. That means you can lock into a good deal early, and if you find a cheaper rate before you have completed then you’re usually able to switch. It’s worth talking to a broker as they often have access to better deals and can keep on top of whether something cheaper has come up. You should ideally go for a fixed deal right now, as if you go for a tracker deal your payments will rise if interest rates are increased. Food shop Food prices have risen by almost 40% since November 2020, official figures show Credit: Getty The cost of your food shop is likely to keep rising further. The UK’s inflation rate, which is the speed at which the cost of goods and services are rising, hit 2.9% today. Meanwhile food prices are rising at 1.3%. That’s the lowest rate for nearly five years, reflecting that supermarkets are competing heavily for customers right now. But for households who have already seen the cost of their food shops rise dramatically over the last few years, it will make little difference. Food prices rose by a massive 38.6% between November 2020 and November 2025, official figures show. You can use a few tricks to cut down on the cost of your food shop. Firstly, make use of reduced yellow-sticker items – it’s worth finding out which days and times your local supermarket starts discounting products. You could also try the 6-1 shopping method, which involves buying six vegetables, five fruits, four proteins, three starches, two sauces/spreads, and one treat to create a week’s worth of meals. The idea is that by sticking to this rule, you won’t be tempted to overspend on food and goodies you don’t need. You could also buy supermarket gift cards through cashback apps, or check for any cashback deals on supermarkets being offered by your bank. For example, Monzo often offers between 2% and 5% cashback on Tesco or Morrisons. Plus, you could try heading to the world food aisle – essentials such as chopped tomatoes and noodles are often cheaper here than elsewhere in the supermarket. Train travel The cost of train travel could go up again next year unless prices are frozen Credit: Getty Commuters could see ticket prices rise by a huge 4.2% next year. Rail fares are typically calculated based on the July rate of retail price index (RPI) inflation, plus a percentage point. RPI, which tracks the average prices of a fixed basket of retail goods and services, hit 3.2% today. This is not guaranteed, though, and Chancellor John Healey could choose to freeze rail fares. His predecessor Rachel Reeves chose to freeze train fares for this year, for the first time in 30 years. If rail fares do rise, you can still make use of these tricks to cut down on costs. Railcards cost £35 but you can easily make this back in one long-distance trip. The Family & Friends Railcard gives a third off adult fares and 60% off children’s tickets. For older kids, the 16-17 Saver gives 50% off adult fares, or the 16-25 Railcard and 26-30 Railcard provide a third off. Or there’s the Senior Railcard for anyone aged 60 or over. With the Two Together Railcard, any two people named on the card can travel together, saving a third on the fare. Plus, look out for Kids For A Quid train tickets offered by Southeastern, West Midlands Railway, London Northwestern Railway, Chiltern and Scotrail. Others, including Southern, Thameslink and Great Northern, have £2 children’s tickets. Groups of three to nine people can save up to a third when booking together. For eligible journeys, a pop-up message in the Trainline app prompts you to apply the discount. You can also use Trainline’s SplitSave feature, helping you to spend less by splitting the tickets along your journey. If you are planning a lot of trips in one area, a Rover ticket could cut cost. Find a list at railrover.org. Water bills Fix any leaking taps or running toilets in your home to cut down on water bills Credit: Alamy Millions of households could see their water bills rise again after water regulator Ofwat approved extra charges for five suppliers. Customers of Southern Water, Wessex Water, Thames Water and Severn Trent Water all face rises from next year. Southern Water customers face the worst hikes at £43 in 2027/28 and a further £37 in 2029/30. However, making simple changes to your lifestyle could save you hundreds of pounds. For example, you should fix any leaking taps or running toilets as these can add to your water bills. You could also cut down on your shower time – research from the Consumer Council for Water (CCW) shows if everyone in a family of four cut two minutes off their daily shower, the household could save around £226 a year. You should also consider getting a water meter. As a general rule of thumb, you’re likely to save money with a water meter if your home has more bedrooms than people living in it. Households that do save money by switching to a water meter typically cut their bills by £190 a year, the CCW says. Another trick is to be careful to fill your kettle by the right amount – overfilling it could cost you £60 a year. Comment now