MARTIN Lewis has revealed an easy trick that could save you hundreds on your energy bill.
The money-saving expert explained that paying for your energy on a direct debit, as opposed to a pay-as-you-go meter, will save you cash – even though the government yesterday announced changes.
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The Treasury vowed to stop energy companies from charging customers extra fees if they use prepayment meters.
The average pay-as-you-go meter customer pays an extra £45 a year.
But Martin warned that as fixed rates will likely be returning, Brits could still miss out if they are pay-as-you-go.
Speaking on his Budget special this evening, the expert said: “On the first of July pre-payment users will pay the same as those on direct debit – they currently pay roughly three per cent more or £45 on the typical bill.
“We now know the mechanism for that which is the Energy Price Guarantee will give us subsidies so until the system is changed that it makes it the same price of direct debit and pre-pay.”
However, Martin explained that he thought in the long run, those on direct debit would end up with the better deal – again.
He said: “If fixes come back, and I think we’re going to see them coming back soon, they are generally only offered and cheaper rates are only offered to those on direct debit – they tend not to be offered to pre-payment customers.
“I suspect once competition comes back direct debit customers will still pay less that some of the most vulnerable in society.”
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In the ITV Budget special, Martin also revealed how Brits on Universal Credit can get free cash with specific savings account.
He explained why thousands across the country will spend more on energy bills from next month, too.
Yesterday Martin offered his verdict on the Budget – he spoke to tax, energy bills, pensions, and free cash.
He was speaking after seven major changes were announced for childcare amid yesterday’s Budget, while the price of a packet of cigarettes rose to £14.39.
Elsewhere, Jeremy Hunt gave millions of workers a pension boost by scrapping the lifetime pension allowance (LTA) to tempt people to work longer.
The Energy Price Guarantee (EPG) cap will also continue at £2,500 for another three months.
It was meant to rise to £3,000 a year for households in April but Hunt scrapped those plans today.
This will save the average household around £160, the government said.
Meanwhile, it was also announced drivers won’t pay more for fuel as duty was frozen.
