Households setting budgets ahead of possible bill hikes

Many households are looking to get on top of their finances in advance of possible bill hikes this year.

According to a poll by SMARTY Mobile, 43% of people expect household bills to go up in the coming months.

That extends beyond basic utilities such as gas and electricity, as nearly one in ten believe their phone bill will increase in 2025.

As a result, many are hoping to get on top of their finances this year, so they don’t find themselves getting into difficulty.

For example:

• 60% said they’ve set a monthly budget for 2025 or plan to do so
• 35% want to reduce their monthly expenses
• 34% plan to create an emergency savings fund
• 28% are saving for a major purchase

But while many people are starting the year with good intentions, it can be easy to be knocked off course.

In fact, half of those who have or plan to set a budget admitted they’re only “somewhat likely” to stick to it.

Christmas expenses cast financial shadow in new year

For many, the new year can be a good time to get on top of your finances, as it comes hot on the heels of the costly Christmas period.

In fact, one in three people say they’re more likely to save money in January than in any other month so they can reset for the coming year.

Among the money saving measures people are embracing are:

• looking for vouchers and discount codes
• selling unwanted and unused items online
• using blankets, layers and turning down the thermostat
• freezing meals and batch cooking
• reusing wrapping paper, gift bags and ribbons
• using cashback apps for groceries and online shopping
• walking or cycling rather than driving or using public transport
• buying own-brand or generic products, rather than branded items
• buying second-hand or vintage clothes
• planning free days out, such as walks or trips to museums
• setting a cap on daily or weekly spending
• starting or continuing a side hustle
• shopping exclusively from clearance or discount sections
• not spending money at weekends
• growing your own herbs or vegetables
• tracking expenses through a budgeting app
• getting books from the library
• using basic ingredients to make homemade cleaning materials
• putting every fiver into a jar for a month
• unsubscribing from paid-for services

Building better money habits

Setting a budget can encourage a sense of financial discipline, where you actively think about your spending habits, how much you’re saving and making sure you’re ready for future events.

It’s easier than ever with our free budget calculator, so you can prioritise your spending, save for future goals and regain a sense of control over your money.

If you’re finding it hard to make ends meet, then remember that help is available, as we’re here to support you.

We offer free and impartial advice and can:

• help you work out and set your budget
• see if you’re getting all the benefits you’re entitled to
• offer free debt advice online or over the phone
• give info about debt solutions (some are free, others have a fee)