We recently mentioned about the £150 energy bonus for families and that little story certainly got you all talking!

In addition, there were rumours abounding that the Government would impose a windfall tax on energy companies to pay for immediate help for families to meet rising bills this winter.

But instead of getting extra cash to help us out, we will get energy saving tips instead…

Yep, 11 million homes are to be given help to reduce bills in the biggest state-backed programme to modernise household energy use for over 40 years.

Utility companies will fund most of an additional £1 billion for energy efficiency measures over the next three years. 

About 4 million of Britain’s poorest households (those on benefits those aged over 70) will be eligible for free loft and cavity insulation. More affluent households, yet to be defined, will be able to claim discounts on household improvements designed to reduce energy consumption.

In addition to the proposed energy saving measures, Gordon Brown has pledged to increase cold weather payments from £8.50 to £25 per week.

The money (which will cost the Treasury £250 million a week if temperatures drop to 0C or below for seven days in a row), will come from government reserves.

Want to beat the energy price rises? Save up to £365 on gas and electricity for your home

Will you get help with your fuel bills?

Tony Woodley, joint general secretary of Unite, made a pre-emptive attack on the expected energy-efficiency package, saying that the issue “can’t be addressed by ‘lagging the loft’, as some crackpot has suggested”.

He added: “Without help with fuel bills now, we’ll be lagging the coffins of the elderly if we have a cold winter.”

Joe Harris, general secretary of the National Pensioners Convention, said 2.4 million pensioner households were in fuel poverty (defined as spending more than 10% of their income on energy bills) and a million more were likely to join them by the end of the year saying: 

"Energy efficiency schemes won't help them pay their bills this month and neither will they prevent over 20,000 pensioners dying from the cold this winter.  Every time there is a 1% increase in energy bills, a further 40,000 older people fall into fuel poverty.

"It's time the government intervened to prevent the energy companies making profits at the expense of vulnerable pensioners, raised the winter fuel allowance to £500 and regulated social tariffs to give proper discounts to older customers."

Uswitch Energy Calculator - find out what you can save on your bills today.

Uswitch link for saving on EVERYTHING – includes heating cover, loans, broadband, current accounts, water, car insurance, etc.

A plan to provide six million poorer families with fuel vouchers worth between £50 and £100 was scrapped after ministers failed to agree how it should be funded.

Nevertheless, ministers will claim that persuading energy companies to volunteer almost £800 million of extra funding vindicates their decision to pursue a negotiated settlement with Britain’s biggest utility providers.

The money will be raised by increasing by up to 30% contributions that the big six power companies are already required to invest in the carbon emissions reduction target programme. The existing three-year, £3 billion scheme obliges them to pay for measures such as loft and cavity wall insulation as well as low-energy lightbulbs.

Price increases from Britain’s big power companies this year mean that more of us face the threat of fuel poverty. The biggest beneficiaries of the energy measures are likely to be loft laggers, double-glazing installers and other home-insulation specialists.

Loft insulation is a good starting point. It prevents 15% of heat loss through the roof. A 270mm layer of insulation costs £500 to install but average savings are £155 a year. DIY insulation costs about £250, with payback after two years.

Insulating cavity walls can save one third of heat loss from your home and reduce your bills by 15% or £120 a year. Only homes built after about 1920, however, were constructed with two layers and a cavity.

So, now the Government has decided to help our increasing fuel bills, which is the best option?

Should we all be given more financial help towards our bills, even though this may be seen as a short term measure?

Or should we get discounts on household improvements designed to reduce energy consumption, which is more of long term measure?

We don't make this stuff up, honest!

In a reflection of how some people are using the credit crunch to justify their behaviour, a debt ridden council has wants to ban its staff from using toasters and kettles to save money on its multi-million pound electricity bill!

Aberdeen City Council (which is £50million in the red) is considering a blanket ban on 'unauthorised' electrical appliances as part of a new financial rescue plan.

It is also considering its staff on training courses to learn to drive more efficiently in an effort to curb its £1.5million annual diesel bill.

Mind you nothing from this council should surprise us as earlier this year, it revealed that it’s temporary chief executive, Bob Coomber, a financial expert from London, would earn £1,000 a day to sort out its money troubles!

Yes, because doing that is really going to help your £50 million debt…

The action plan was revealed in a report which shows the authority's fuel bill topped £10million last year, including £3.5million for gas and £5.8million for electricity.

Wow, they really must have loads of toasters and kettles…

Among the proposed measures are the 'removal of all non-council kettles, toasters, fridges, fan heaters, and other non-approved appliances from offices and establishments.'

Naturally, staff are unhappy at the prospect of having to go without toast, cups of tea and desk fans and claim the move will only serve to further depress their morale.

The council is also considering turning off safety lighting in some buildings and car parks during the night and at weekends, and ditching post-it notes in favour of scrap paper.

Belinda Miller, the council's head of economic and environmental sustainability, said:

'There is an expectation by staff, elected members and the public that reducing our waste of energy and other resources should be a priority.'

But Mike Middleton, a representative for the GMB union, warned there are not enough canteen facilities in all council buildings and banning such items may hit morale adding:

'Although we appreciate the need for efficiencies, there may be mixed messages that affect staff morale.'

Opposition Labour councillor Willie Young labelled the idea 'daft', adding: 'It will get people's backs up; you have to be practical.'

Indeed you do but when a Council that already owes £50 million,  pays a guy £1,000 a day to sort out its fiances, you have to question its intelligence don’t you?

They should ban toasters all right; the toasters who run the council!

Have you heard of any equally stupid cost saving measures adopted by businesses or organizations?

Why not let us know in the comments?

It seems like the summer is officially over, given how the weather has performed recently.

Unsurprisingly, when the rain comes down, so does the volume of retail sales.

These have dropped almost across the board last month due to the bad weather and our low consumer confidence, while the property market remains in the doldrums

The British Retail Consortium (BRC) reported that sales fell 1% last month compared with August last year on a like-for-like basis. They said this was due to low confidence and increasing demands on on our household budgets (see food prices picture below).

This meant that we looked for value and planned our spending carefully to take advantage of the widespread promotions and discounts.

Stephen Robertson, the BRC's director general said:

"Miserable weather washed out hopes of a summer boost for retailers. Annual like-for-like sales fell in five of the last six months, the first time this has happened since 2005. Even food sales growth slowed. Footwear was the only other sector where sales rose, boosted by children's shoe sales."

Food and drink was the only sector to show significant sales growth, despite the chilly weather hitting salad and barbecue products. Food retailers reported higher sales of cheaper meat products such as mince and stewing meats.

In a bid to attract consumers who have been tightening belts in the face of rising inflation there was heavy discounting across both clothing and footwear stores over the month.

Howard Archer, economist at Global Insight, was not surprised by the figures saying:

"Consumers are being hit by a myriad of factors, notably muted disposable income growth, a serious squeeze on purchasing power coming from sharply rising utility bills and elevated food prices, tight credit conditions, higher mortgage repayments, sharply falling house prices, higher debt levels and rising unemployment."

Uswitch Energy Calculator - find out what you can save on your energy bills today.

Uswitch link for saving on EVERYTHING – includes heating cover, loans, broadband, current accounts, water, car insurance, etc

Are you struggling with debt? You should also speak free of charge to a debt adviser who can provide you with advice and solutions to help you resolve your debt and credit problems.

In addition there is more gloomy news from the latest Royal Institution of Chartered Surveyors' (RICS) monthly report on the housing market. (download pdf)

It shows the number of transactions has hit its lowest level since the survey began in 1978. Mortgage approvals are down more than 70% in the past year.

RICs spokesman, Jeremy Leaf said:

"A lack of mortgage liquidity is the key issue. The government's stamp duty policy will not be enough to kickstart transactions and is more likely to assist buy-to-let investors. More needs to be done to reinvigorate a market whose confidence has taken a severe knock."

So, are you still buying food and shoes like you used to or are you cutting back on even these?

Why not let us know in the comments below?

Getting car insurance is a necessary nuisance for many of us…especially if we drive a flash car like an Aston Martin!

But no matter what you drive, it’s definitely worth putting in some time and effort as you can get some good deals and save yourself a small fortune each year.

Here’s what you can do to help yourself:

• Shopping around

Spend a few hours comparing car insurance deals online and you soon realise that you can save whether you are renewing or buying for the first time.

Comparison websites, such as Confused.com, uSwitch.com, moneysupermarket.com, insurance.co.uk and Tescocompare.com are worth looking at.

You should check them out every year as the best deals can change every month!

• Quote massaging

Your job could have more than one description; for example, a “solicitor” is also a “lawyer”. Testing different legitimate job descriptions, or "quote massaging" (looking at the different ways in which you can legitimately describe your job so you can 'massage' your quote to get a more competitive price), when you apply for car insurance could save you up to hundreds of pounds.

• Adding a second named driver

Adding an older second named driver (a parent, for example) to your policy could save younger drivers a further 15%. There is no need for this person to ever drive your car.

• Not pimping your ride

Research from comparison website BeatThatQuote.com indicates that modifying your car (like lowering the suspension or adding a rear spoiler) could add up to 171% to the cost of cover.

• Protecting your ride

Car insurers bump up prices if they think your car is vulnerable. If possible, park your car in a garage or a driveway. Also install a Thatcham-approved alarm and immobiliser.

• Not claiming under £500

Most claims knock two years off your no-claims discount; wiping out very substantial savings of up to 70% in your car insurance policy price. Experts advise you to avoid claiming for any damage under £500.

• Considering bundled insurance

Some new cars come with free insurance for a year or more. This could be a significant selling point. But don’t fall into the trap of renewing the bundled cover when it expires without first comparing other deals. 

• Taking a course

Completing a Pass Plus course could cut your car insurance premiums; sometimes by 30% or more which would cover the course cost of £100 to £150.

So, whether you are renewing or buying for the first time, providing you do a bit of homework, you can cut the cost of your car insurance!

With money being tighter these days, its no surprise that over half of us are now more prepared to drive a hard bargain!

Even with bigger items such as cars and televisions, we are now prepared to haggle according to research by CreditExpert.co.uk.  

However, many of us are not prepared to negotiate when it comes to financial products!

Driven by fears of an economic downturn and amid the rising cost of everyday goods and services, more than half (57%) of us  said we were more likely to try and negotiate a discount now than we  were twelve months ago.

CreditExpert’s study examined the situations in which we would feel comfortable negotiating prices and found that 47% of us would be prepared to ask retailers for a better deal.

However, we are all far less comfortable negotiating for a better deal on a loan, mortgage or other financial product; only 16% of us are prepared to give it a go!

Jim Hodgkins, Managing Director, CreditExpert.co.uk, commented: “The credit crunch appears to be having a significant effect on our haggling behaviour and as our wallets feel the pinch, we are less willing to settle for the advertised price.

“As many people don’t understand financial products in the same way they do consumer goods, they lack the confidence and know-how to be able to get a better deal. Reviewing and understanding your credit status can put you in a stronger position as lenders will sometimes give the top rates and deals to those with the best credit ratings.”

Based on a survey of 1,040 adults which looked at negotiation behaviour and changes in haggling skills in the last year, the results showed that: 

• Men are better at haggling.  The average woman saved £217 on a single product by bargaining, but men saved an average of £343 each
• Over 38% of you questioned had successfully negotiated a better price for a new car and 60% of you admitted to feeling comfortable asking for a better deal on home entertainment products, such as a TV or stereo, from a technology retailer
• 77% of you believe that confidence is key to walking away with a better deal
• More than half (57%) of you questioned consider yourselves good at getting a bargain or negotiating for a better price

Most confident negotiators in Eastern England

Those of you living in Eastern England have the best negotiating skills and are willing to put them into practice with 66% of you claiming you have great negotiating skills and 67% are more willing now than 12 months ago to try to get a bargain. That’s 10% higher than the national average.

Those living in the North East are not as successful when it comes to haggling for goods. While 87% of you living in the North East believe that confidence is the key to getting a bargain, you are not as keen to attempt to negotiate. More than a third of you believe you have poor negotiation skills; two-and-a-half times the national average of 15%.

Over-confident youth?

The younger ones among us are the most confident when it comes to negotiating, with 63% of you aged 18 to 24 believing that you are good at haggling.

But when questioned further, the research reveals that while you are full of confidence, you are actually the least likely to bargain successfully! This is because you achieve the lowest average reduction in price for a single product of £171; that’s £115 less than the national average.

In comparison, the more hands (those aged 45 to 54) are the best negotiators, making an average saving of £362.83 on a single transaction.

Jim Hodgkins says: 

“Keeping on top of your finances and knowing your credit status can give you confidence when trying to get the best deal on your loan or mortgage, just as knowing about cars and consumer goods is helpful when haggling on the price. At a time of future economic uncertainty it’s more important than ever for people to be optimising their credit payments.”

CreditExpert provides you with a summary of your credit status and alerts you to significant changes on your credit report.

You can get your free credit report with a 30-day trial at www.creditexpert.co.uk.

Want to negotiate some good deals right now?

Uswitch Energy Calculator - find out what you can save on your bills today.

Uswitch link for saving on EVERYTHING – includes credit cards, loans, broadband, digital TV, home phone, current accounts, water, car insurance, etc.