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Martin Lewis Issues Important Advice To Households That They Must Carry Out In Less Than 48 Hours

Emily Brown

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Martin Lewis Issues Important Advice To Households That They Must Carry Out In Less Than 48 Hours

Money saving expert Martin Lewis has issued urgent advice for members of the public who pay their energy bills by monthly direct debit.

Lewis addressed 'the vast majority of people in England, Scotland and Wales' in his video released on Twitter today, 30 March, in which he shared three 'urgent must-knows before 1 April'.

When that date hits, the UK is set to see 'enormous rises in energy bills', with the price cap due to rise 'by an average of 54 percent', Lewis explained, describing the change as 'hideous'.

The expert then went on to share his advice for this change, saying: "Before we get to the 1 April, preferably on 31 March, do a meter reading and send it to the company there and then."

Lewis explained this meter reading will allow customers to 'draw a line in the sand' which indicates the energy used by 31 March, meaning the companies should not be allowed to charge a more expensive rate for energy that has not been used.

For those thinking of ditching their direct debits, Lewis stressed that while 'you may gain control, it will cost you more'.

He used average figures to demonstrate why direct debits would be the cheaper option, saying: "If you're on typical usage the price cap from the 1 April for somebody paying by direct debit is £1,971 a year. If you pay by on pre-payment it's £2,017, but of course you'll need a pre-payment meter for that.

"If you want to pay by quarterly bills [...] then the price cap is £2,100, so that means you're paying over six percent more for the same usage than you do by direct debit because there is a discount allowed for direct debit."

Lewis went on to note that he can't 'tell you' what to do, but stressed for anyone who can cope with a direct debit that it is 'cheaper to do so'.

The expert's third point addressed whether energy users 'should be fixing right now', using estimates to recommend a fix that is 'no more than around 18 to 20 percent above the April price cap before it is worth contemplating fixing'.

The cheapest open market deal is 'around 40 percent more' than the April price cap, Lewis explained, so 'with the lie of the land as it is today', the expert said it is 'not worth fixing' and said you're better off to 'stay on the April price cap and then if nothing changes before that go on to the new October price cap'.

Lewis went on to stress he does not have 'certainty or surety', admitting his estimates were down to 'crystal ball gazing'.

Featured Image Credit: @MartinSLewis/Twitter/Alamy

Topics: Martin Lewis, Money, UK News

Emily Brown
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