Caitriona Redmond: Be prudent, shop carefully, and put some savings aside this April
Caitriona Redmond: "It feels like so much of the news nowadays is taken up with talking about the doom and gloom around tariffs, price increases, and the potential for the cost-of-living increases."
It feels like so much of the news nowadays is taken up with talking about the doom and gloom around tariffs, price increases, and the potential for the cost-of-living increases. While yes, this week I’m going to tackle how money savings can still be made, it feels wonderful to be opening with some good news!
If you’re not already aware, in Budget 2025, the VAT rate on energy (electricity and gas) was held at 9% as a cost-of-living measure until May 2025. If this increase were to take effect, it would add another €70/year onto the average electricity bill and €60/year onto the average gas bill.
In a major move last week, the Government has taken action to stop the rate from rolling from 9% to 13.5% on the 1st of May next. I realise it’s not a saving that you will see in your wallet, but the rate increase has been halted for now and many households (including mine) take a sigh of relief that there is one less bill increase to worry about.
When it comes to mobile phones, many providers are now issuing inflation-linked contracts which guarantees an increase every year, typically in March/April. Vodafone Ireland mobile phone contracts increased by 4.4% mid-March and broadband customers will be affected by an increase of €3.50 per month in April.
Three Ireland also increased their mobile phone bills in April by 4.5%, and Eir also implemented increases on their mobile customers ranging from €2.50 - €1.50 per month.
The cost of a mobile phone bill can vary wildly depending on whether you are locked into a premium contract which is linked to the purchase of a new phone, or a SIM-only contract which can cost as little as €10 per month with limited data and calls.
Like many service providers, mobile phone companies benefit from customers who are reluctant to switch after their set contracts have ended.
Save money on your mobile phone bill by moving to SIM-only if your phone is paid for in full. If you’re the type of person who uses their mobile phone at home or work with Wi-Fi access, you may not need a generous or unlimited data allowance.
Once you’re out of contract you’re free to move to whichever provider you like, and benefit from new customer offers.
It’s also worth evaluating whether you still need a landline phone or not.
This could be an unnecessary cost for your household if you are rarely making or receiving calls on the landline and instead use your mobile phone more. You could make a small saving by moving to a broadband only service.
So far just one energy supplier has announced price increases that were implemented last week. SSE Airtricity stood apart from the crowd when they implemented an increase of 10.5% on electricity and 8.5% on gas from the 2nd of April. It is likely that other suppliers will follow suit as the price of wholesale energy continues to fluctuate.
Regardless of energy provider, did you know that if you’re out of contract and don’t engage with your supplier to find a new rate, your bill will roll onto the standard rate? This standard rate can be as much as 20% more expensive than discounted rates with the exact same provider, that you are perfectly entitled to receive.
The difference between the Estimated Annual Bill (EAB) and a discounted loyalty rate for an electricity customer can be as much as €400 per year. It stands to reason if you use more electricity than the average household you could save much more.
In the past year I’ve been contacted by several families who hadn’t changed suppliers or received a discounted rate for over five years. They were astounded by the savings they made simply by calling their existing energy company.
Insulate yourself from high energy bills by providing regular meter readings to your supplier, paying the same amount every month on a level-pay or equal-pay agreement, and simply picking up the phone once a year and negotiating a new rate. Websites like Bonkers.ie and Switcher.ie can help with this also.
Irish Life Health, Laya Healthcare and Level Health all applied increases to their health insurance policies at the start of April. Research by the Health Insurance Authority reveals that 71% of people with private health insurance have never switched supplier.
Many policy holders won’t feel the effects of these price increases until their annual policy comes up for renewal. For some, this may take up to a year.
This gives those affected plenty of time to research and review their existing health insurance, what they need, and the potential to switch. Considering that there are hundreds of private health insurance policies in the Irish market, you may need that long to trawl through them all!
There are big rewards for the small effort of making a few phone calls or sending some emails once a year. Set an annual reminder in your calendar as it can be easy to become complacent and forget.
As the weather gets warmer and the days are brighter and longer, I start looking forward to the Summer and preparing for Winter. Now is the best time to look for bargains on Winter clothing and household items that come at premium prices in November and December.
Waterproof ski jackets make for perfect school coats in bad weather and now that the skiing season has passed, the discounts start dropping like snow melting on the slopes.
Thicker and insulated curtains and fleece blankets are going rapidly out of season and fashion, these can save you money on aforementioned energy bills in the cold weather.
While the local hardware store may have some lovely barbecues on display, check the discount section to see if you can benefit from draught excluders.
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