Simple trick can help MILLIONS of households save £90 a year on energy bills

MILLIONS of households could save around £90 on their gas and electricity bills by switching the way they pay.

The average energy bill will rise by almost £700 from next month, meaning many families are trying to cut costs.

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The energy price cap will jump to £1,971 in April, piling more pressure on Brits’ finances.

You could save money by switching the way you pay.

Energy firms often offer a lower rate to customers who pay by direct debit.

According to the latest figures from energy regulator Ofgem, only 56% of the 28million households in the UK currently pay by direct debit.

That means there are around 12.5million homes that use a different payment method.

However of those, 4million are on prepayment meters and can’t switch to direct debit for their energy bills.

Those that can switch could cut almost £100 off their annual energy bill.

It’s £90 a year cheaper on average to pay by direct debit, although the exact amount varies between suppliers.

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Setting up a direct debit means the money will automatically go out of your account at the chosen date and time.

You can time it to go out every month or every three months, so you need to make sure there’s enough cash in your account at that time.

Otherwise you could be hit with late payment fees or end up in an unarranged overdraft.

The amount you pay will be estimated by your supplier and then divided by 12 to work out your monthly charge.

This means you might end up under or overpaying, and you’ll either build up debt or credit.

You can use the credit to reduce future payments or cover costs in colder months when you need to use more energy.

But if you’re in debt your bills might rise until you pay it back.

If you do decide to switch to direct debit, just get in touch with your supplier for more details.

Make sure you read you electricity and gas meters regularly, so you’re only paying for energy you use.

You should check your bills when they arrive and compare them to your meter readings.

If the payments are wrong, ring up your supplier to give them an actual reading.

What help is available if I’m struggling with my energy bills?

If you already pay by direct debit or you don’t want to switch, there are more ways to get help paying your energy bills.

Your first step, if you’re struggling, should be to contact your energy supplier.

They may be able to change your payment plan or check if you’re eligible for their hardship fund.

For example, British Gas and Octopus have both set up funds to help customers who are struggling with their bills.

You should also check that you’re getting all the benefits you’re entitled to.

Use an online benefits calculator to make sure you’re not missing out on any extra cash.

Similarly, you can search for grants that can help you pay for gas and electricity bills.

There are government schemes available to help households pay for energy costs.

You might be eligible for the winter fuel allowance or cold weather payment if you already get other benefits.

Finally, one of the best ways of saving money is to make your home more energy efficient.

Check whether you can reduce your energy use with a simple trick such as putting foil behind your radiator.

This post first appeared on thesun.co.uk