This one simple change to your energy payments could save you £138

With some savvy energy switching UK households could save hundreds

With the Energy Price Cap rising this winter, millions of UK households may be at risk of being ‘left behind' by not fixing their energy prices.

In addition to the savings made by switching, millions of UK households could save as much as £138¹ on the cost of their energy each year by changing how they pay their bill.

Figures from the Department for Energy Security and Net Zero show that around 12%² of UK households – or 3.4 million households – choose to pay by standard credit, commonly known as ‘Paying on Receipt of Bill,’ meaning that collectively, they could be paying as much as £459 million a year more than direct debit customers³.

Households choosing to Pay on Receipt of Bill could also find themselves missing out on the best energy deals, with a number of the best deals typically requiring customers to pay via direct debit to qualify.

Typically, it is more common for older people to choose to Pay on Receipt of Bill, but for pensioners who are on their supplier’s SVT, the cost of Paying on Receipt of Bill will wipe out as much as 69% of their Winter Fuel Allowance, if they don’t take action.

With a range of competitive deals on the market at the moment, households can save an average of £271⁴ a year by switching their supplier, according to MoneySuperMarket consumer data.

Laura Hinton
Commercial Manager

Act sooner rather than later

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.

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.

For most people switching energy is surprisingly quick and easy to do. So, if 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, as they could save a significant amount of money – especially once summer is over and energy use increases over winter.

MoneySuperMarket’s Top 5 tips for saving money on your energy bills:

1. Switching off unused lights and appliances could save up to £53⁵ a year.

2. Replacing your bulbs with LED ones could save you £45 a year⁶.

3. Pay By Direct Debit. Most of the best deals on the market will require you to pay by Direct Debit, with those who pay on Receipt of Bill being charged £138 more a year on price capped tariffs.

4. Plug up draughts. Stopping heat from escaping through unwanted gaps could help you save up to £40 a year, but you could save more with professional draught-proofing⁷.

5. Shop around and use MoneySuperMarket to switch to a new energy deal and you could save up to £271⁴ a year.

<sup>Sources
1. Ofgem Price cap July to September 2025: https://www.ofgem.gov.uk/information-consumers/energy-advice-households/energy-price-cap
- Direct Debit - £1,720
- Standard Credit - £1,855
- £1,720 - £1,855 = £135
2. Department for Energy Security & Net Zero
3. According to the ONS, there are 28.4 million households in the UK.
12% or 23.4 million = 3.4million
£135 x 3.4million = £459,000,000
4. 50% of customers that switched using MoneySuperMarket saved £271. July 2025, Exc NI, CI, IOM
5. Energy Saving Trust
6. Energy Saving Trust
7. Energy Saving Trust
https://www.ofgem.gov.uk/sites/default/files/2025-05/Appendix-1-Decision-Core-operating-cost.pdf</sup>