British households are currently facing the challenge of increasing energy costs this winter, following the rise in the price cap by the regulator in October. Ofgem’s price cap is set to increase by £149 from the current £1,568 a year for a typical household in England, Scotland, and Wales to £1,717. This surge in energy prices has left many individuals searching for ways to reduce their energy bills and save money.
### Expert Tips for Lowering Energy Bills
Jonathan Brearley, Ofgem’s chief executive, emphasized the importance of “shopping around” to find better deals on energy tariffs. He highlighted that there are now some competitive deals available in the market, urging consumers to consider fixing their energy tariff to potentially save money and secure a rate that remains unchanged for a fixed period.
Martin Lewis, the founder of MoneySavingExpert.com, echoed this sentiment, stating that switching energy suppliers and opting for a fixed-price energy tariff can lead to significant savings. He advised consumers to look for the most cost-effective option based on their usage and location, recommending the use of comparison sites to explore and compare different deals.
Emily Seymour, energy editor at Which?, emphasized the importance of assessing individual circumstances when choosing an energy deal. She suggested comparing monthly payments on a fixed deal with those on a price-capped variable tariff to determine the best option. Seymour recommended looking for deals around the price of the current price cap, with terms not exceeding 12 months and minimal exit fees.
### Available Support for Energy Bills
In addition to exploring cost-saving measures, Ofgem encouraged individuals to leverage state benefits that they may be entitled to, which can help alleviate the financial strain of energy bills and overall cost of living. While 1.4 million pensioners are already receiving pension credit, there are an estimated 880,000 additional households eligible for support due to low incomes.
Pensioners receiving pension credit are eligible for the winter fuel payment, providing assistance of up to £300 towards energy bills. The government recently revised the eligibility criteria for the winter fuel payment, resulting in approximately 10 million pensioners missing out on this benefit.
### Financial Assistance for Struggling Households
If individuals anticipate difficulties in paying their energy bills, it is advisable to proactively reach out to their energy supplier for assistance. Energy companies are obligated to collaborate with customers to establish a payment plan that aligns with their financial capabilities, potentially offering more flexibility in payment terms.
Richard Lane from debt charity StepChange expressed concerns about the impact of the price cap increase on households already facing financial challenges. He urged the government to introduce targeted support for those experiencing severe financial difficulties to prevent further debt accumulation.
As households navigate the escalating energy costs this winter, exploring various strategies to lower energy bills, leveraging available support, and engaging with energy suppliers for assistance can help alleviate the financial burden. By being proactive and informed, individuals can better manage their energy expenses and mitigate the impact of rising prices on their budget.