{"id":22667,"date":"2023-01-09T10:00:28","date_gmt":"2023-01-09T10:00:28","guid":{"rendered":"https:\/\/ounews.co\/?p=22667"},"modified":"2023-01-09T10:00:28","modified_gmt":"2023-01-09T10:00:28","slug":"ways-that-can-help-you-stop-feeling-blue-about-finances-in-2023","status":"publish","type":"post","link":"https:\/\/www.open.ac.uk\/blogs\/news\/arts-social-sciences\/ways-that-can-help-you-stop-feeling-blue-about-finances-in-2023\/","title":{"rendered":"Ways that can help you stop feeling blue about finances in 2023"},"content":{"rendered":"
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Jonquil Lowe<\/p><\/div>\n

Jonquil Lowe<\/a> is a senior lecturer in economics at the OU and specialises in personal finance. Here she provides some New Year tips for those likely to struggle in 2023 and for others who could ease their load.<\/em><\/p>\n

Stats show over a third of UK households, that\u2019s 10.8 million, are struggling or in serious difficulties because of the cost-of-living crisis.<\/p>\n

Those figures from the abrdn Financial Fairness Trust<\/a> also show that 8 million other households (28%) are feeling financially secure.<\/p>\n

Years of austerity and falling real wages have put many households in a shocking and impossible situation where, even if working flat out, they still cannot afford the basics.<\/p>\n

The government needs to get on with deciding how it will support the worst affected when the current support packages run out. More widely, it needs to sort out ensuring that work really does pay.<\/p>\n

If it\u2019s you<\/em> who is struggling, you\u2019re probably well on top of the usual hacks to shop in the cheapest supermarkets, turn down your boiler\u2019s flow temperature and stop draughts around doors and windows. What you might want to put on your New Year resolution list is:<\/p>\n

Don\u2019t get a smart meter<\/strong><\/h2>\n

A smart meter automatically sends readings to your energy provider, so it might seem convenient, but if there is any risk you might not be able to manage your energy bills this year, don\u2019t get one.<\/p>\n

Here\u2019s why: it can also be remotely converted into a prepayment meter if you fall into arrears. You\u2019ll then pay more and be left without any energy if you can\u2019t afford to top up your account (it\u2019s called self-disconnection).<\/p>\n

Providers should warn you in advance and not make the switch if you\u2019re a vulnerable customer<\/a>. Whether or not you count as vulnerable depends on your circumstance but might apply if, for example, you\u2019re on a low income, you have a chronic health condition, have young children or live alone.<\/p>\n

But the Office for Gas and Electricity Markets (Ofgem)<\/a> has found providers are flouting these checks. With a normal meter, your provider needs physical access to it and only after getting a warrant from a magistrates court, which should check whether you count as vulnerable.<\/p>\n

Talk to your lender<\/strong><\/h2>\n

If you are one of the estimated 1.7 million<\/a> mortgage customers whose fixed-rate deal is due to end this year your payments will rise substantially.<\/p>\n

The financial regulator, the Financial Conduct Authority<\/a>, has told lenders they should help customers cope with rising mortgage bills, for example, by agreeing to accept reduced monthly payments or changing your contract to an interest-only deal, perhaps.<\/p>\n

If you\u2019re not feeling the pinch as badly as others<\/strong><\/h2>\n

Meanwhile, if you\u2019re financially secure \u2013 your income is good, mortgage paid off or you\u2019re on a long-term fixed tariff that\u2019s insulating you from energy price shocks for now, you might consider helping others who are less comfortable.<\/p>\n

If you don\u2019t need the government\u2019s \u00a3400 energy bill discount<\/a>\u00a0 being paid to every household, you could donate to the Fuel Bank Foundation<\/a>. It gives financial help and advice to households who are in fuel crisis and cannot afford energy for heating, cooking and showering.<\/p>\n

The New Year is going to be challenging for many, but it\u2019s also an opportunity to rebuild a sense of community and look out for each other.<\/p>\n","protected":false},"excerpt":{"rendered":"

Jonquil Lowe is a senior lecturer in economics at the OU and specialises in personal finance. Here she provides some New Year tips for those likely to struggle in 2023 and for others who could ease their load. Stats show over a third of UK households, that\u2019s 10.8 million, are struggling or in serious difficulties […]<\/p>\n","protected":false},"author":18,"featured_media":22668,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[860,869,1525,1640],"class_list":["post-22667","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-arts-social-sciences","tag-faculty-of-fass","tag-fass","tag-news-home","tag-ou-home"],"_links":{"self":[{"href":"https:\/\/www.open.ac.uk\/blogs\/news\/wp-json\/wp\/v2\/posts\/22667","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.open.ac.uk\/blogs\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.open.ac.uk\/blogs\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.open.ac.uk\/blogs\/news\/wp-json\/wp\/v2\/users\/18"}],"replies":[{"embeddable":true,"href":"https:\/\/www.open.ac.uk\/blogs\/news\/wp-json\/wp\/v2\/comments?post=22667"}],"version-history":[{"count":0,"href":"https:\/\/www.open.ac.uk\/blogs\/news\/wp-json\/wp\/v2\/posts\/22667\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.open.ac.uk\/blogs\/news\/wp-json\/wp\/v2\/media\/22668"}],"wp:attachment":[{"href":"https:\/\/www.open.ac.uk\/blogs\/news\/wp-json\/wp\/v2\/media?parent=22667"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.open.ac.uk\/blogs\/news\/wp-json\/wp\/v2\/categories?post=22667"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.open.ac.uk\/blogs\/news\/wp-json\/wp\/v2\/tags?post=22667"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}