Millions of Brits urged to make £138 energy saving with one simple change

Millions of UK households could be paying over the odds on their energy bills – just because of how they choose to pay. And with prices rising again this winter, experts are warning it’s time to act.

New figures show around 3.4 million households or12% of the UK are still paying their energy bills using standard credit,more commonly known as ‘Paying on Receipt of Bill’ (PORB).

But this method comes at a price. According to MoneySuperMarket, households using PORB pay an average of £1,351 per year - that’s £138 more than those who pay via Direct Debit. Collectively, that adds up to an extra £459 million spent across the UK each year.

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Laura Hinton, energy expert at MoneySuperMarket, said “With energy bills expected to rise once again this winter, it’s important for households to act now by taking stock of their energy bills, switching provider and revaluating how they pay for their energy.”

Pensioners could lose nearly 70 per cent of Winter Fuel Allowance

The data also shows that older customers are more likely to use PORB, putting pensioners particularly at risk. Experts say that those on their supplier’s standard variable tariff (SVT) could see up to 69% of their Winter Fuel Allowance wiped out if they continue to pay on receipt of bill.

And with many pensioners already struggling with rising costs, switching payment method could offer an easy win.

“As well as switching, if you choose to pay your energy bill by cash, bank transfer or cheque out of habit, making one small change to paying by Direct Debit could mean an extra saving of £138 per year,” Hinton added.

Best energy deals reserved for Direct Debit customers

It’s not just about saving on the bill itself. Many of the most competitive tariffs are only available to Direct Debit customers – meaning PORB users could also be missing out on cheaper rates altogether.

And the savings can be big. According to MoneySuperMarket, switching to a better tariff could save households an average of £271 per year on top of the £138 saving from switching payment method.

“For most people switching energy is surprisingly quick and easy to do,” Hinton said. “So, if you know someone who could save money by moving to Direct Debit or switching their energy provider, it’s a great time to spend a few minutes helping them find a better deal especially once summer is over and energy use increases over winter.”