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Government plans to install smart meters in all the country’s homes by 2020 could help people monitor their expenses, it is claimed.

Energy and climate change minister Ed Milliband believes it will not only mean reductions on people’s bills, but also their impact on the environment.

Karen Gibson, a nursery manager from Northumberland, already has one of the meters in place and says: "I reckon I have saved around £250 since I had it fitted a couple of years ago because I am not wasting as much energy as before."

She reveals that she can keep track on how many pounds and pence she is spending on her energy.

It is anticipated that suppliers will be able to offer a different range of products to their customers, allowing them to be more economical and efficient with their spending.

According to the Energy Savings Trust, the average household spends £25 per week on fuel and power, around £1,300 per year.

It also found that around £8.5 billion of energy is wasted in the UK every year – enough to give every man, woman and child in the UK £140 a year.

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