Some 10 million pensioners in England and Wales will be hit twice in the pocket when the weather turns cold this year – by losing their winter fuel allowance while having to fork out even more to heat their home.
MPs voted last week to cancel winter fuel payments worth up to £300 from all by the poorest of pensioners. Rachel Reeves’ cost-saving move was passed by 348 votes to 228 in the House on Tuesday.
The vote followed an announcement by the energy regulator Ofgem that it would be raising the price cap by £149 from October 1, meaning the average will be Brit paying £1,717-a-year on their gas and electricity bills.
Now, money-saving champion Greg Mars, CEO and co-founder of AI household money-saver Nous.co, has drawn up six simple tips for pensioners to be aware of as the UK temperature starts to turn.
Read on below for his top six ways on how to save money on your energy bills if you are a pensioner.
Check if you are eligible for Pension Credit
First up, the money-saving guru advised pensioners to see if they were eligible for Pension Credit, which could save them up to £19.04 a week if you have a partner or £17.01 per week if you are single.
Mr Mars said: ‘There are 880,000 pensioner households eligible for Pension Credit and not receiving it. These households are also eligible for the Winter Fuel Allowance.
‘Make sure you’re not one of those losing out on significant sums – check whether you could be getting the payment on the Government website.’
Take a meter reading on 30 September
Next up, Greg suggested that pensioners take a meter reading on September 30, in order to avoid being caught out by the new prices.
He warned: ‘Ofgem’s energy price cap is increasing on 1 October.
If you don’t have a smart meter, make sure you take a manual reading before 30 September, so your supplier doesn’t think you’ve used extra energy under the new higher rates.’
Monitor your credit balance
Thirdly, the money-saving guru said that it is important for anyone who pays their energy bills by direct debit to monitor their credit balance.
This is because you may have money in your account as a surplus from paying lower bills by virtue of not switching your heating on all summer.
Greg noted: ‘If you pay for energy by direct debit, you should have built up some credit over the summer. If you’re in debt right now, your monthly payment is set too low and you’re at risk of building up a large debt over the winter.
By November, you should have credit worth at least what you pay each month in your account.’
Don’t ditch the direct debit
With the previous tip in mind, Greg warned customers not to be too hasty when it came to eschewing direct debit in favour of other payments.
He advised: ‘If you think your direct debit is too low or too high, don’t ditch it entirely – it’s the cheapest way to pay for energy.
‘Customers who pay by standard credit – cash or cheque – currently pay around £100 per year more than direct debit customers.’
Save more than £100 without committing to a fix
Giving his penultimate tip, Greg said that pensioners might even be able to save money by simply switching to another provider – which could offer you a better deal than you had previously.
He said: ‘Most households are out of contract right now and can save by switching providers.
‘The majority can save the better part of £150 on their energy bills, without having to commit to a fixed deal.’
Beware bad value fixes
Sharing his sixth and final tip, the money-saving expert said people should not necessarily resort to switching providers if they still have a lengthy time left to run on their current contract.
Greg stated: ‘Anyone shopping around for cheaper energy deals should think hard before committing to a fix.
‘For most people a fixed deal isn’t worth it at the moment, unless you really prioritise having certainty about how much you’ll be paying.’
Mr Marsh added: ‘Millions of pensioners will be £300 worse off this year after losing their Winter Fuel Allowance.
‘At the same time, energy bills are going up just as the weather gets colder. This could leave considerable numbers of older people struggling to afford their gas and electricity.
‘With all this going on, it’s crucial to make sure you’re not overpaying for your bills. Fortunately – there are savings to be made if you’re smart about it.’