Low income households pay the most for their energy

26 February 2020

Lower income households in Britain pay more for energy than higher earners

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Households in Britain’s most deprived areas pay £60 more per year for their energy than higher income households, according to new data from comparethemarket.com.

The price comparison website found that the average annual energy bill for Britain’s most deprived households is £1,123 while those living in the most affluent areas pay £1,063.

Poorer households were more likely to be on a prepayment plan or using their suppliers’ standard variable tariff (SVR), both of which make the cost of energy more expensive.

Over half of households with an annual income of less than £12,000 were on an SVR.

By contrast only 32% of households with a combined income of between £45,000 and £59,999 were on an SVR tariff.

Around 20 of the cheapest available tariffs on the market are over £300 cheaper than the current SVR rates offered by energy suppliers.

How to save on your energy bill

You could save hundreds of pounds a year by simply switching your energy provider.

These three tips can help you cut the cost of your energy bill and save money.

1) Check your tariff

It’s important to check what type of energy tariff you're on.

If you're on a fixed price energy tariff, the price you pay per unit of energy that you use won't change for a certain period of time.

Variable energy tariffs are often more expensive as the price you pay per unit of energy changes at the discretion of your supplier.

If your fixed tariff is coming to an end or you're already on a variable energy tariff you should start looking around for a better deal.

2) Shop around

Price comparison websites are a great place to start when shopping around for a new energy provider.

They allow you to search through hundreds of deals from different companies quickly and easily.

You'll need to have a recent energy bill or annual statement to hand which contains details about your current energy plan.

If you don't have a recent energy bill, you can contact your current energy provider for the information.

As well as looking at price, be sure to check how their customer service is rated to ensure that you get the right assistance if any issues arise.

3) Switch

If you find a better deal elsewhere then you should make the switch.

Your new provider will arrange the switch and ask you to provide your most recent meter readings.

Most energy companies have signed up to the 'Energy Switch Guarantee' which means that it shouldn't take more than 21 days to complete your switch.

From 1 May 2020, suppliers that take longer than 15 working days to make the switch will have to give you an automatic £30 compensation payment. 

 

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