Summer fuel, food and energy costs are spiralling – how the experts are cutting costs

The cost of living is going up again, with almost everything becoming more expensive this summer.

Inflation is expected to hit 4 per cent by the end of the year, with higher oil prices caused by the US-Israeli war on Iran affecting not just fuel but all kinds of goods because of transportation costs in their supply chains.

Here’s what experts recommend on how to save and prevent our spending from getting out of control.

Check your contracts and subscriptions

News about inflation can “feel like an unending spiral of doom for many people”, says consumer expert Martyn James, “and there will be an impact for the foreseeable future”. He fears it could become “the most expensive summer ever”.

But he says people can often cut costs more easily than they expect. When trying to save, we tend to instinctively think about shopping habits – but the biggest savings are usually made by checking contracts and subscriptions.

More than a quarter of Britons are out of contract with their broadband providers, making their bills £7 to £9 per month higher on average, according to Ofcom. If you’re one of them, “you could halve your broadband bill from £100 to £50 or less,” James advises.

Similarly, check your mobile phone usage to pick the cheapest plan. “We might think we need 30gb of data every month, but actually we’re using Wi-Fi most of the time,” he says. “You can easily reduce your monthly phone bill from £40 to a tenner overnight.”

Watch out for insurance policies you don’t need, too. “Some people get new phones and forget to cancel the insurance policy that was sold to them last time,” James says. If you need several gadgets insured, buy a single product to cover them all.

For any form of insurance, set a calendar reminder for one month before it expires. “That’s the best time to renegotiate,” James says, observing that “people are getting £200 to £300 off their car insurance four weeks before renewal”.

James also advises people to check the last 13 months of their bank and credit card statements for unnecessary subscriptions. Not only can you cancel them, you might even be able to claim some money back. Look out for regular e-payments on Apple Pay, Google Pay and PayPal accounts, too.

Don’t rely on banking app filters to find these payments for you, James adds. “You have to do it manually because most subscriptions are not taken by standing order or direct debit, they’re taken by a continuous payment authority.”

Follow timeless advice for cheaper groceries

Dr Liliana Danila, chief economist at the Food and Drink Federation, forecasts that inflation on food could reach at least 9 per cent by December. “Consumers will see the prices of foods that are less manufactured, like fresh produce, rise first,” she predicts. However, the most energy-intensive producers are likely to be hit hardest, affecting butter and pastries, for example.

So what to do? Switch to cheaper supermarkets such as Lidl, swap from big brands to chains’ own ranges, look for offers, use loyalty cards, set budgets in advance, and avoid shopping while hungry to reduce impulsive purchases.

Drive – and fuel up – more efficiently

Much like the tips for cutting supermarket bills, there are many ways of maximising fuel efficiency. Although you must stick to speed limits, modern cars are usually most efficient at 45 mph to 50mph, and it’s best to drive in the highest gear possible as that reduces engine revolutions.

Lighten the weight of your car, such as by removing unused roof boxes and cycle racks, which will also eliminate aerodynamic drag – two things that burn more fuel.

Use air conditioning only when it’s really needed because it uses engine power, and make sure tyres aren’t under- or over-inflated as that increases fuel consumption.

But ultimately, “the best thing you can ultimately do is buy the cheapest possible fuel for your car”, says the RAC’s head of policy, Simon Williams.

“Motorway services are the most expensive places to buy fuel,” advises Williams. Supermarkets are generally several pence cheaper, but there are some independents that really pride themselves on having the best prices.”

He recommends checking his organisation’s My RAC app to find the cheapest station nearby. Data from the Government’s Fuel Finder scheme is also available on other trackers like DriveScore, MotorMouth and Fuel Spy.

Check your energy tariff before it’s too late

If you live in one of the 33 million households in England, Wales and Scotland that have a standard variable energy tariff, 1 July is a deadline day.

That’s when the price cap rises by 13 per cent, meaning an average annual bill increase of £221 to £1,862 – so, before the end of June, check on price comparison websites whether you can find a cheaper fixed deal. Although it’s possible this could end up being more expensive if prices drop significantly in the coming months, experts think that’s unlikely.

How you pay makes a difference too, says James: “If you pay by direct debit, it’s around about 8 per cent cheaper.”

Create your own discounts hub

To take advantage of discounts and offers more strategically, James suggests setting up a new email account purely for newsletters. This avoids your normal inbox being swamped, and creates a go-to hub for the latest deals.

Some people avoid credit cards for fear of overspending or incurring charges. But if you’re confident about repaying bills in full every month, then cashback deals – offered by credit providers including Lloyds and American Express – can add up.

Enjoy cheaper travel while it lasts

There is some good news: flight prices remain surprisingly low. Warnings about potential jet fuel shortages have suppressed demand, but the situation is now thought to be safe until at least late summer, so some airlines have reduced prices. Flights to Spain in June are available on Skyscanner for as little as £24, or £36 in August.

Securing the cheapest prices relies on flying with little baggage at off-peak times, so if you can be flexible, travel on weekdays and plan ahead to avoid overpacking.

There are good hotel deals to be found, too. Across Europe, prices for June are actually 1.5 per cent lower than they were last summer, according to Lighthouse, a hospitality data analytics firm. Compared to 2025, hotel prices are down in places like Finland, Albania, Jamaica and the Bahamas.

If you prefer staying in Britain, Which? has compiled a list of the best cheap beach towns in the UK – naming Tenby in Pembrokeshire as the best – and travel firms have reported a surge in bookings for the Lake District.

For family days out, the Government has made bus travel in England free for children aged 15 or under throughout August. It is already free in Scotland for anyone aged 21 or under, while Wales has a £1 cap on fares for the same age group.