Households are being encouraged to make five simple checks to their finances ahead of winter and Christmas as higher energy bills put additional pressure on budgets.
Personal finance expert Kevin Mountford, co-founder of Raisin UK, has shared practical tips to help people manage essential bills, set realistic spending limits and protect their savings over the coming months.
The advice follows the increase in Ofgem's energy price cap on October 1, which saw the typical annual bill for a household paying by Direct Debit rise by £60, from £1,663 to £1,723. However, the price cap is not a maximum amount that households will pay. Actual bills depend on energy usage, location, tariff and payment method.
Savings trends and winter pressure
Meanwhile, Raisin UK's Great British Savings Report 2026 found that the average monthly amount put aside by people currently saving for something had fallen by 27 per cent, from £335 in 2025 to £245 this year.
The research also found that 64 per cent of people with savings accounts had withdrawn money from their savings over the previous year. Among those who had used their savings, 42 per cent selected everyday living costs, including groceries and bills, as a reason.
Kevin warned that the combined cost of winter heating and Christmas spending could create difficulties for households that fail to plan ahead.
He said: "A £5 increase in the typical monthly energy bill might not sound dramatic on its own, but winter rarely brings just one additional cost. Heating goes on more often, Christmas spending starts to build, and food, travel, and social plans can all compete for the same household budget."
He added: "If you do have savings, try not to treat the whole pot as available Christmas money. Keeping a separate emergency buffer can help protect you against an unexpected bill or repair later in the winter, while setting a specific Christmas budget gives you a clearer limit to work within."
Five ways to protect your winter budget
1. Check your energy bills and tariff
Kevin advised households to check their latest energy bill or online account to understand how the October price cap increase could affect their finances. The £1,723 annual figure is based on typical energy consumption and is not a fixed amount that everyone will pay.
Bills depend on how much gas and electricity a household uses, where they live and their payment arrangements. Reviewing current usage and tariff details can help people estimate their likely winter costs before making other spending commitments.
2. Include essential winter bills in your Christmas budget
Rather than working out Christmas spending based on the money currently available in a bank account, Kevin recommended calculating essential expenses first. This includes energy bills, groceries, travel and other regular payments that will need to be covered between now and January.
Once these costs have been accounted for, households can make a more realistic decision about the money available for presents, celebrations and other festive activities. The approach could help prevent Christmas spending from leaving people short of money for essential bills.
3. Set a separate Christmas spending limit
Kevin recommended setting an overall limit for festive spending and dividing it into categories such as gifts, food, travel and social events. Keeping Christmas money in a separate savings pot or account can make it easier to track spending and identify when the budget is running low.
It can also help prevent money intended for household bills or emergencies from being spent on non-essential purchases. The aim is to establish an affordable amount before spending begins rather than relying on credit or savings to cover unexpected shortfalls.
4. Reduce energy waste without compromising comfort
Households may be able to reduce energy costs by reviewing heating schedules and avoiding unnecessary electricity use. Kevin suggested checking when heating is programmed to come on, avoiding heating unused rooms unnecessarily where appropriate, and switching off appliances and lights when they are not needed.
Using energy-efficient settings on household appliances could also help reduce consumption. However, he stressed that cutting energy costs should not mean going without adequate heating during colder weather.
5. Protect your emergency savings
Families with money set aside for unexpected expenses are being encouraged to think carefully before using those funds for planned Christmas purchases. An emergency fund can help cover unexpected costs such as urgent repairs or an unusually high winter bill.
Kevin recommended keeping some money accessible for genuine emergencies wherever possible. People who need to withdraw savings should also review the interest rate on their remaining balance and consider whether their account still provides suitable access to their money.
Avoiding Christmas debt
Kevin stressed that budgeting does not have to mean cutting out festive celebrations altogether.
He said: "Christmas should be something people can enjoy, not something that creates financial stress well into the new year. Planning doesn't mean stripping the fun out of it, it means deciding what matters to you, setting a figure you can afford, and protecting the money you'll need for everything else."
He also encouraged households to review their savings arrangements during winter. He added: "If you've had to draw on them, think about how you might gradually rebuild that buffer when you're able to. And if you still have money set aside, check whether it's earning a competitive rate while remaining as accessible as you need it to be."
Households can also find a full list of cost of living help available for people in Scotland on the Scottish Government website.
