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Home›Direct debit›Martin Lewis’ tips for saving money on energy, from direct debit payments to tax refunds

Martin Lewis’ tips for saving money on energy, from direct debit payments to tax refunds

By Meaghan H. Gonzales
March 7, 2022
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Martin Lewis has once again told people how to save money with three new tips to help those battling the energy crisis.

The money-saving expert and his team have highlighted three ways that will help reduce rising energy bills.

Many households will see their energy bills increase by more than half of what they are now.

Read more: Mythop Road: Two people rushed to hospital and Weeton Road closed after car and truck crash

From April 1, gas and electricity bills will rise by 54%, meaning many homes will be paying hundreds more every year.

Recently, TV show host Martin advised people to “do nothing” about changing fares or providers, as the standard fare turned out to be the cheapest available, reports the Echo.

The money-saving expert has posted his top three tips on Tik Tok.

Prepaid meters will not help

Martin started with prepayment meters, especially those that use non-smart prepayment meters.

He said, “If you’re on smart prepay, that won’t help you.”

He explained that Ofgem, the energy regulators, informed him that users get the tariff on the day they top up their meters, not when they use energy.

Martin said: “That means if you max out your recharge in March before the rate goes up, that’s what you’ll get. Even if you then use that energy in April.

“So you can extend the cheapest rate we currently have for longer by maximizing your top-up if you can afford it. I know not everyone on prepay can.”

Direct debit payments

For households that pay their energy suppliers by direct debit, Martin advised: “If you are on direct debit, I’m afraid there isn’t a similar system for you.

“But, I suggest you take a meter reading today and get up to take a meter reading on March 31.

“It’s so you can draw a line and tell the energy company that this energy that I used should be at the cheapest rate.”

Some could get a £150 council tax rebate

Upcoming government programs can help reduce bill costs, as Martin explained.

He explained that in April, everyone who belonged to the AD bands council tax would get a £150 tax refund to help with energy costs.

He said: “For the English scheme, we’re told you’ll get the money automatically paid into your bank account as long as you pay council tax by direct debit.

“If you’re not doing it already, there’s still time to put it in place, although I can’t give any timelines as it’s board by board.

“If you don’t set up direct debit, keep an eye out for a letter from the council, as each council will tell you their complaints system and you need to be careful of that.”

He added: “If you are not eligible for the £150 because you are in a higher bracket, a discretionary amount of £140million is in place to help those struggling, but it will be up to each council to decide how he distributes it.”

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