I pay a standing order of £220 a month for my gas and electric and have taken Martin Lewis’s advice to ‘Do Nothing’ when my fixed rate tariff ended in December, so I am now on a standard variable rate under the price cap. If I look at the ‘best deal’ available (which, of course, isn’t the best deal at all, as all fixed deals are above the price cap) it shows that my £220 a month would double to £440 a month ? That’s also with a £447 credit sitting on my account, although presumably most of that will go with this quarters usage.
As the big hike doesn’t come into effect until April, it won’t hit people big time until the autumn as heating will be off during the summer. Then we have the double whammy of the October price cap increase on top of it. I would opt out of the £200 ‘loan’ if I could. I don’t like the idea of buy now, pay later, especially as these high prices could last into the period when it has to be paid back.
Fortunately, being retired we don’t pay NI but those that do have that to contend with as well, as well as mortgage rates likely to rise and petrol / diesel prices remaining steadfastly high. It’s certainly a perfect storm – and we still haven’t even scratched the surface of paying back all the Covid related financial support (furlough etc). Scary times ahead, especially for those in employment who will have to pay for all of this.