It is not too late to save yourself from the bills increase
Households are set to see their bills rise this winter after the energy price cap increased by 4% from October 1 for a typical household in Wales, England and Scotland. The rise equates to around £60 per year, and takes annual bills to £1,723 for the average household using both electricity and gas.
However, money expert Martin Lewis has explained how to avoid the hike altogether.
In a bid to reduce the cost of heating homes this winter, the UK Government has removed VAT from electricity bills until March 2027.
Bill payers do not need to do anything to claim the savings as it will be deducted automatically from October 1 with suppliers no longer charging the tax. For money-saving tips, sign up to our Money newsletter here
The removal of the tax will cut around £45 off the yearly Ofgem price cap however bills will still rise for most households.
The price cap does not apply to every home as it only applies to those on standard tariffs, not fixes or special deals.
MoneySavingExpert founder Mr Lewis has explained that “you don’t need to let these hikes happen” if you’re on a standard tariff.
Many people can avoid the increase by switching to a new fixed term where you lock in the rate for a year or two, so it won’t rise. He has also advised: “Don’t just stick with your existing firm though, it may not be the cheapest.”
The cheapest 12-month fix according to Martin Lewis is the E.on Next Fixed 12m Exclusive v10 which is 4.2% less than the October 1 price cap on average.
He also included the cheapest longer term fixes that span over two years including the Fuse Energy Sept 26 Fixed (24m) v16 24mth fix and the E.on Next 24m Exclusive v20 24mth fix.
New and existing customers can benefit from these fixed term contracts.
