Martin Lewis issues warning to people thinking of cancelling direct debits due to high energy bills
30.08.2022 - 15:13
/ manchestereveningnews.co.uk
Martin Lewis issued a warning to households who are planning on cancelling their direct debit amid soaring energy bill prices. On Friday (August 26), Ofgem announced that energy bills for 24 million households on a standard tariff will increase by 80 per cent from October.
It will take the average household bill from £1,971 per year to £3,549. The cap remains in place until December 31 when energy analysts predict it could surge again to around £5,400 in January and £7,000 in April.
For many, the possibility of facing steeper Direct Debit payments is making them consider cancelling the payment method and paying their bills directly. But in a new video released on social media and YouTube, Martin Lewis warns people that doing so may seem like a win in the short-term but long-term, there would be a higher price to pay - some £200 extra a year.
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Although the price cap doesn't come into effect until October 1, Ofgem warned that some suppliers could start to increase Direct Debits before then to spread costs. In the 13-minute long video, the founder of MoneySavingExpert.com explains the impact of the price cap, daily standard charges, how much certain groups of people will pay and answered the most common questions he has been asked since the announcement.
Martin explained how the way people pay their energy bills results in a different price cap, reports the Daily Record - but just remember, these only apply to those on the standard tariff, not a fix.
From October 1, annual bills will increase by the following:
Joanne asked Martin: "Is there any mileage in cancelling Direct Debit payments and