Martin Lewis reveals how to slash your energy bills and 'save hundreds' for the next 16 months

Martin Lewis
-Credit:Reach Publishing Services Limited


A finance guru has told Brits to take action immediately to secure savings on their energy bills over the forthcoming 16 months. Martin Lewis, the founder of Money Saving Expert (MSE), has highlighted that many homes could slash their energy costs by up to seven percent with a few adjustments.

In an article written for MSE, Martin implored individuals to contemplate moving to a more economical energy price-capped tariff. With the energy cap having surged in October and January, it's anticipated to climb once more in April.

However, Martin pointed out that there are certain deals available which could help consumers sidestep this increase. He detailed: "Most homes are on an energy price capped tariff. The cap went up 10 percent on 1 Oct, up another one percent on 1 Jan and it's now predicted to go up three percent to five percent on 1 Apr."

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"Yet act now and you save now, and can prevent future hikes." Martin underscored: "The easiest and safest route is fix now."

For those still puzzled about what the cap entails, he confirmed that it's not an absolute cap on expenditure but rather a ceiling on the daily standing charge and per-unit cost of energy, meaning "so use more, pay more".

Martin went on to say: "Most firms charge at the limit, and these limits are high now, meaning the price cap is a pants cap, as most can easily compare and switch to a cheaper deal." This advice, he noted, is pertinent to the majority of UK homes, with approximately eight out of ten households being on a price capped tariff.

Woman cold at home
Martin warned that the energy cap is set to rise again in April -Credit:Getty

If you're not sure about your current energy deal, you can always check with your provider or use the online MSE comparison tool. "Move to the cheapest fix and within five working days you'll be paying typically seven less than what those on price capped tariffs pay," he explained.

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"Plus, the rate is locked in so you get peace of mind that it won't change, whereas the price cap's predicted to rise further." With these considerations, he shared a rundown of the current cheapest standalone fixes available. It's crucial to remember, though, that these offers are only up for grabs in England, Wales, and Scotland - they are not available in Northern Ireland.

E.on

E. on was first on his recommendation list with the E.on Next Fixed tariff. This 16-month contract is limited to just 10,000 customers. On average, it's seven cheaper than the ongoing price cap, equating to a £120 annual saving for someone with "typical use". The tariff is exclusively accessible through MSE and E.on Next direct.

If you sign up via MSE, both new and existing customers receive an additional £10 bill credit, plus £20 MSE cashback. Other key details include:

  • The rates are fixed for 16 months

  • It's open to new and existing dual-fuel and electricity-only customers who pay by monthly direct debit

  • There are £50 per fuel exit fees

  • No smart meter is required.

British Gas

Next up, he mentioned the British Gas Fixed Tariff. This 12-month fixed tariff doesn't require a smart meter.

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You'll see an average saving of 5.2 percent compared to the current price cap, which includes £20 MSE dual-fuel cashback. This option also comes with a £50 early exit fee.

EDF

The EDF Simply Fixed is another 12-month tariff that doesn't require a smart meter. On average, you can save 4.9 percent compared to today's price cap, including £20 MSE dual-fuel cashback for new customers only. However, this tariff comes with a £25 early exit fee.

Outfox the Market

Outfox the Market offers the Outfox Fix'd Dual, also a 12-month tariff that doesn't need a smart meter. This tariff allows an average saving of 4.5 percent compared to today's price cap but has a £50 early exit fee.

For more details, visit moneysavingexpert.com/latesttip.