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Money Advice: The PERFECT time to switch
By: Martin Lewis
Martin Lewis: "savings likely to be huge"
Even if you have moved into a new house and don’t have any bills, many will have the facility to give you an estimate if you put in some basic details.
While the comparison sites aren’t perfect, they make it much easier than trying yourself.
The easiest way to sort this out is online, plus that has the benefit that you can get cashback on top when you switch. This includes up to £30 for a dual fuel switch or even a crate of wine.
Yet, to do this, you can’t go direct to the comparison sites. Do that and you won’t get any freebies. These specific links have happened as the comparison sites vie for business on my site – see www.moneysavingexpert.com/gas
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Boots has randomly allocated a bonus 1,000 points, worth £10 in-store, to 200,000 Advantage card holders. Pop your card in one of its store's ATM type machines to see if they appear. Offer ends 18 May.
Got an iPhone? Cut your tariff
Many iPhones are now out of contract, but cost £30+/mth. Yet a new O2 tariff for out-of-contract iPhones is£15/mth for unlimited data, texts & 300mins – is an easy way to slash bills and keep your number. Go to www.moneysavingexpert.com/iphone for a full how-to.
2for1 Thorpe Park vouchers
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Martin Lewis: "savings likely to be huge"
Money-Saving Expert Martin Lewis gives advice on your energy bills
If you saw someone feeding twenty-five £10 notes into an open fire to keep warm, would you stop them?
It’s a ludicrous waste of cash, yet across the nation people are doing just that to keep warm, unnecessarily putting the notes into gas and electricity companies’ coffers.
While the “switch energy” message is constantly trumpeted, for me, like good comedy, timing is everything when switching energy providers. And now’s the perfect moment.
Last month the final five of the big six energy companies cut their prices.
That means that if you do a price comparison then there’s a level playing between the providers.
Gas and electricity companies are like sheep. When one bleats, the others follow. So if you switch as soon as one of them announces lower prices, you risk moving to a company that won’t be the cheapest after the dust settles and they all alter prices.
So now the latest round of cuts seems to have ended, it’s a good bet it’s a cracking time to compare. The savings are likely to be huge.
Hidden price war
While recent gas and electricity price drops have been shouted about in the papers, at best they amount to an average cut of 9% on gas and no cut on electricity for standard tariffs. That does make things cheaper, but most people can save well over £250 a year more.
That’s because while standard tariffs remained constant for nine months, there was a regular punching through of new online tariffs – where you’re billed by email – battling to be top of the comparison tables.
Staggeringly, that now means that, while one average usage on a standard tariff, you’ll typically now pay around £1,150 for gas and electricity on the cheapest online tariff you’ll pay less than £900.
How to switch
The easiest way to find out who is cheapest is to use one of the Consumer Focus-approved comparison sites. Tell it where you live and give as much information as possible about your energy bills and it will tell you who is cheapest.
Even if you have moved into a new house and don’t have any bills, many will have the facility to give you an estimate if you put in some basic details.
While the comparison sites aren’t perfect, they make it much easier than trying yourself.
The easiest way to sort this out is online, plus that has the benefit that you can get cashback on top when you switch. This includes up to £30 for a dual fuel switch or even a crate of wine.
Yet, to do this, you can’t go direct to the comparison sites. Do that and you won’t get any freebies. These specific links have happened as the comparison sites vie for business on my site – see www.moneysavingexpert.com/gas
Occasionally, even more cashback may be possible with a bit more work. Once you’ve found your cheapest provider, check its website to see if it has any direct cashback sign-up incentives. And then try specialist cashback sites like Quidco.com or TopCashBack.com to see if they can offer you an incentive for that provider too. Having said that, cashback from cashback sites is never 100% guaranteed.
For those who aren’t online, many comparison sites also offer phone services which allow you to switch.
Of course, you still won’t have access to the very cheapest online tariffs although you should still be able to save money.
Examples include Energy Helpline (0800 074 0745), The Energy Shop (0800 330 7247) and uSwitch (0800 404 7908).
It ain’t what you do, it’s the way that you do it
Saving money on your energy bills isn’t just about doing the comparisons. Who you use and how you pay can cut your bill substantially.
- Don’t assume that dual fuel is the cheapest. Logically getting your gas and electricity from the same supplier should be the cheapest way, and often it is. But not always, so while you are doing your comparisons, compare the cheapest dual fuel deal with the cheapest standalone suppliers for each fuel.
- Switch to monthly direct debits. Fixed direct debits, where you pay a set estimated amount each month will save you 5 to 10% over any other method of payment. If you pay this way, do ensure that you do a meter reading every time you get a bill. It helps keep the bill more accurate. If they are under-billing, you can have big whack to pay off at the end of the year. If they are overbilling, then they have got your cash unfairly.
- Avoid prepayment meters if you can. While a government push means things are getting better, those on prepayment meters are pretty hard done by, certainly compared to those on direct debits. If possible, try to switch to a billed meter. You may have to pay to get one but the savings are usually worth it. If not, some of the comparison sites do allow those on a prepayment meter to compare and shift.
- Consider a financial hardship tariff. If you are in financial hardship, some companies offer special cheaper tariffs that will help. However, don’t assume these will be the cheapest. If you have the facility to be billed online, that’s still generally the winner.
- Grab £1000s in grants. There are a vast range of grants available for improving home heating and energy Just go to the http://www.energysavingtrust.org.uk and use its energy grant search to see if you are eligible for anything.
- Finally, use less energy. It’s not just who you pay and how you pay that matters. Cutting your energy use is a mix of big and little things. Turn down the thermostat, make sure you’ve got loft insulation. Keep doors closed and use energy-saving light bulbs. If it’s cold, put a jumper on rather than put the heating up.
Boots Cardholders. Possible FREE tenner
Boots has randomly allocated a bonus 1,000 points, worth £10 in-store, to 200,000 Advantage card holders. Pop your card in one of its store's ATM type machines to see if they appear. Offer ends 18 May.
Got an iPhone? Cut your tariff
Many iPhones are now out of contract, but cost £30+/mth. Yet a new O2 tariff for out-of-contract iPhones is£15/mth for unlimited data, texts & 300mins – is an easy way to slash bills and keep your number. Go to www.moneysavingexpert.com/iphone for a full how-to.
2for1 Thorpe Park vouchers
Get 2 x 2for1 Thorpe Park vouchers when you register with Rustlers at hwww.rustlersonline.com/. Simply enter your details for its Thorpe Park competition and you'll automatically get redirected to the voucher. Vouchers are valid until 7 November
Get Martin’s FREE tips and money-off vouchers emailed straight to you each week by signing up to www.moneysavingexpert.com/tips
TV money guru Martin Lewis runs the consumer revenge website MoneySavingExpert.com; ensure you get his weekly e-mail so you’re constantly saving money.
