Iceland and Utilita launch cost cutting workshops and say people can save money by microwave cooking

Shoppers struggling with surging food prices and energy bills will be able to attend free workshops to help them shave £604 off their annual outgoings, thanks to a new campaign by Iceland and Utilita Energy.

With inflation at 10.1 per cent, largely driven by rampaging food and energy costs, Iceland will also introduce energy saving cooking guidance on its product packaging.

Fresh research by Utilita has unveiled the seven most frequently used cooking methods and ranked them by how much they cost to use per day, week, month or year. 

The electric cooker came out bottom of the pile, while the most economical to run is the humble microwave, according to the findings.

The campaign will also see both brands selling a 4.5litre air fryer from Tower Housewares at a discounted price of £35. 

The duo claim this purchase would ensure shoppers ‘make their investment back in around 47 days of avoiding the oven.’

Utilita and Iceland’s ‘Shop Smart, Cook Savvy’ campaign will launch in early September ‘to help families better understand the cost of cooking, and to help identify the most economical cooking methods available to them to make budgets stretch further.’ 

As part of the campaign, households will be able to attend thousands of free workshops up and down the UK which will outline 15 ways to cut energy bills, including five ways to save up to £604 a year when cooking.  

How much does cooking cost?

According to Iceland and Utilita’s findings, most households across the UK spend around 43 minutes cooking each day. Forty-two per cent admitted to using their oven by default, and relying on it heavily for their cooking needs. 

Fifty-two per cent said of people surveyed said they had no idea how much their cooking equipment cost to run. 

The research suggests that an electric cooker is the most uneconomical cooking method, costing 87p a day to run, which equates to more than £316 a year. 

Meanwhile, gas cookers cost around 33p a day to operate, equating to just over £10 a month and £120 a year. 

Slow cookers and air fryers, both of which have enjoyed a spike in popularity in recent years, cost 16p and 14p a day to run respectively, the findings suggest. 

For households looking to save money on their energy bills, the research suggests a microwave could be the most economical option, costing 8p a day to run, equating to 58p a week, just £2.50 a month and £30 a year. 

The figures are based on the premise that ovens are used for an average of 43 minutes a day, while other appliances, including a microwave, are used for about 20 minutes a day. 

Iceland and Utilita believe households could cut their cooking energy usage by between 60 to 90 per cent a year by altering their cooking habits.

How do ‘cooking behaviours’ affect bills?

As well as showing the differences in the cost of running an oven or microwave, the findings also suggest that certain ‘cooking behaviours’ are adding hundreds of pounds to people’s bills every year. 

Utilita suggests that using energy efficient appliances while cooking could help people save £287 a year. 

Batch cooking, the research claims, could help households shave off £158 a year from their bills, while using the correct-sized pan with a lid could also help people save £72 a year.

The research also claims that people can save £68 a year by simmering rather than boiling food while cooking. Avoiding overfilling the kettle can also help people reduce their bills by about £19 a year, it adds. 

What do top brass at Iceland and Utilitia have to say? 

Richard Walker, Iceland’s managing director, said: ‘The cost of living crisis continues to be the biggest national issue facing consumers and as a private, family-run business, we’re constantly looking at both short, and long term initiatives that can offer any support.’

Bill Bullen, Utilita’s founder and boss, said: ‘For as long as we can remember, our kitchens have been designed around the oven being the main cooking method, which isn’t the case for many households today. 

‘Much more economical cooking appliances such as air fryers, slow cookers and microwaves have become increasingly popular. However, the cooking instructions on food packets haven’t reflected this.

‘Utilita and Iceland are closely aligned in our mission to help households make their money go further. There are so many factors that neither Richard nor I can control today, but the cost of cooking is mutual ground that we can help consumers with. This unique partnership will hopefully urge other supermarkets to do the same and help consumers choose the most economical cooking methods.’

Cost of living business tsar and former Just Eat boss David Buttress, said: ‘This is the type of consumer awareness campaign that will stick in our minds because it’s enabling every household to rethink the way we cook, which hasn’t been done before.’

He added: ‘I am hopeful that other supermarkets will follow suit to help their consumers identify the cheapest way to cook.’ 

What’s happening to energy bills?

Rising global energy prices are sending UK household and business energy bills surging.   

October’s price cap is due to be announced at the end of this month, and energy industry analysts Cornwall Insight predict an average annual bill will reach £3,582, which is £200 higher than the previous estimate.

In January 2023, when the the cap is due to be changed again, Cornwall Insight expects the cap to jump to £4,266.

The higher estimate means the average household would be paying £355 a month, compared to £164 a month currently.

Price hike: Rising global energy prices are sending UK energy bills surging

Energy costs have risen rapidly due to higher demand for gas when Covid-19 restrictions eased, as well as Russia’s invasion of Ukraine. This has threatened gas supplies from Russia, which many countries are reliant upon. 

The dire situation has even led to rumblings at the top of the chain at energy regulator Ofgem. 

On 17 August, a director at Ofgem announced her resignation, accusing the regulator of favouring businesses over consumers with a rule change that will add hundreds of pounds to the average UK household energy bill.

Christine Farnish, a non-executive member of the Gas and Electricity Markets Authority, Ofgem’s board, tendered her resignation in early August.

Ofgem recently changed the rules so the energy price cap can be changed every three months instead of every six. 

The regulator claimed this would make it less likely that more energy suppliers would collapse, and allow consumers to feel the benefit of any future fall in prices more quickly. Around 30 suppliers have failed in the UK in the past year.

Over eight million households in the UK on means-tested benefits will get a payment of £650, as part of the wider Government response to help people manage during the cost of living crisis. Those on certain disability benefits will get a one-off £150 payment in September and pensioners will receive £300 on top of their standard Winter Fuel Payment. 

However, the Government and energy providers are facing mounting criticism that they are not doing enough to shield households from the massive bill hikes set to roll in during the coming months. 

If you are worried about surging energy bills or already in debt to your provider, contact your supplier as soon as you can and discuss what options are available to you. If your energy supplier is not proving helpful, consider contacting Citizens Advice.

What’s going on with food prices? 

Recent official figures from the Office for National Statistics revealed that UK inflation swelled to 10.1 per cent in July. Prices have been rising at the fastest pace for about 40 years.

A number of factors, including surging energy costs, fed into July’s dismal inflation statistics – but food and non-alcoholic drinks were the biggest contributor to rising prices in July, the ONS said.

The cost of staples like bread, milk, cereal, cheese and eggs rose the fastest, while the cost of vegetables, meat and chocolate were also higher, according to the ONS.

Prices also rose for other items including toilet rolls, pet food and toothbrushes. 

On the up: A slew of supermarket items have also far outpaced the inflation rate, the ONS said

Food commodity prices have been rising after Russia’s invasion of Ukraine disrupted supplies from the two countries, which are significant exporters of goods like wheat and sunflower oil.

Some commodities, especially grain and edible oils, have eased substantially, but there is typically a time lag of around six months before that feeds through to prices on the supermarket shelves.

The rising price of gas has also increased the cost of transporting food, again leading to higher prices.  

Kien Tan, a director of retail strategy at PwC, said: ‘Supermarkets have had little choice but to pass on price increases from suppliers, themselves contending with unprecedented inflation in raw material and ingredient input costs. 

‘This has been particularly acute in labour and utility intensive categories like dairy, with reports of the price of a pint of milk having more than doubled in some stores since the start of the year.

‘Furthermore, the Bank of England reported in its latest Monetary Policy Report that supermarkets expected inflation to increase further in coming months, so there is unlikely to be any let up in the run up to Christmas, particularly as the delayed effect of input cost inflation starts being passed through in other categories such as meat, vegetables and packaged groceries.’