Citizens across Scotland have seen a jump in the cost of living recently, with further increases expected in the coming months, and more worryingly again before the end of 2022.

The price of energy has increased dramatically, with many households being forced to choose between heating and eating.

In his Spring Statement, Chancellor Rishi Sunak announced plans to increase the threshold for National Insurance Contributions by £3,000 to £12,570 from July. However, this has come against a backdrop of inflation (CPI) rising to 6.2 per cent in the year to February, with fuel, energy and food prices surging. 

Although the traditional practical ways of saving money on household costs, such as avoiding leaving electrical gadgets on ‘standby’ and turning heating down on washing can help, the situation we find ourselves in now means that these efforts often don’t even put a dent in the deficit we face.

As a result of this, many of us now need to seek additional support when it comes to living costs and getting by.

On top of this, recent research by the Literacy Trust, working with Octopus Energy (2021), highlighted that more than one in five 18- to 24-year-olds responsible for paying energy bills said that they sometimes avoided reading their bills because of the language used (this figure was 3.1% in over 75s). 

Only 1 in 11 of the people surveyed in this age group were able to identify the correct definitions of six terms commonly used on bills.

Throughout Advice Direct Scotland’s Consumer Spending and Financial Awareness Campaign, we will be looking at ways Scottish citizens can save money and the sources of support that are out there that can help.

Over the course of the week, we will look at how we can de-mystify the jargon to help simplify our spending.