Latest news with #DirectDebit
Daily Record
25-05-2025
- Business
- Daily Record
Livingston MP welcomes Ofgem's energy price cap drop
From July 1, the energy price cap will drop by seven per cent to £1,720 per year for a typical household using both electricity and gas and paying by Direct Debit. Livingston MP Gregor Poynton, has welcomed Ofgem's announcement that energy bills will fall by £129 a year for typical households, providing much-needed relief for families across the constituency. From July 1, the energy price cap will drop by seven per cent to £1,720 per year for a typical household using both electricity and gas and paying by Direct Debit. This means families will save around £11 every month on their energy bills. 'This is fantastic news for working families in Livingston,' said Mr Poynton. 'At a time when household budgets are under pressure, this £129 annual reduction will make a real difference to people's finances. 'That's money that can go towards other essential family expenses or be saved for the future.' The reduction comes as global wholesale energy prices have fallen, with Ofgem's latest quarterly review reflecting these lower costs in the price cap that protects millions of households from excessive charges. However, Mr Poynton emphasised that long-term energy security for Livingston and the rest of the country can only come through the Government's mission for clean homegrown power. He said: 'While today's news is welcome, we need to get off the rollercoaster of fossil fuel markets. That's how we bring down bills for good and give families the certainty they deserve.' For West Lothian residents, the new rates from 1 July will mean paying an average of 25.73 pence per kilowatt hour for electricity (with a daily standing charge of 51.37 pence) and 6.33 pence per kilowatt hour for gas (with a daily standing charge of 29.82 pence). 'Every penny counts for families across West Lothian,' added Mr Poynton. 'This price reduction shows that the Government's approach is working, but we won't stop here. 'Our commitment to clean, homegrown energy will deliver the long-term security and affordability that my constituents deserve.' Livingston residents who are struggling with energy bills are reminded that their energy supplier must help if they ask, and that switching tariffs or suppliers could potentially save even more money.
Epoch Times
23-05-2025
- Business
- Epoch Times
Ofgem's 7 Percent Energy Price Drop Isn't a Win for Consumers: Experts
A 7 percent reduction in energy prices announced by Ofgem simply restores prices to where they were at the beginning of the year, leaving energy bills higher than they were 12 months ago, experts have warned. From July to Sept. 30, the typical household paying by Direct Debit will save £11 a month, the regulator said on Friday. Prime Minister Sir Keir Starmer He added that the government is going 'further and faster to tackle the cost of living crisis and put more money back in your pocket.' The energy price cap went up 10 percent in October 2024, 1.2 percent in January, and 6.4 percent in April. Consumer advocates argue that the latest reduction merely cancels out the most recent hike. 'Today's announcement that the price cap is to fall by 7 percent, is welcome, but nothing to shout home about. All this really does is reverse April's rise so it's back to roughly the cost at the start of the year,' Is the Price Cap Still Doing Its Job? The energy price cap was originally designed as a protective backstop for consumers who were unable or unwilling to switch tariffs. Related Stories 11/22/2024 2/20/2025 Over time, however, it has become the standard pricing mechanism for more than 22 million customers. Lewis criticised this development, arguing that the cap lags behind fixed deals available in the market. 'Compare these falls to the cheapest fixes on the market today, which are 18 percent below the current cap, showing the price cap is a pants cap,' he said. Consumer groups such as Uswitch said that cheapest fixed deal could save the average household £203 a year compared with Ofgem's £129 figure. 'For households still sitting on a standard tariff linked to the price cap, now is a great moment to lock in fixed savings before the winter gloom returns,' said Richard Neudegg, director of regulation at Uswitch. Which? also encouraged customers on fixed deals that are now more expensive than the new cap to check for exit fees and consider switching if their current plan allows. Price Fluctuations The cap reduction reflects a fall in the international price of wholesale gas, explained the regulator's Director General Tim Jarvis. Ofgem also noted that lower supplier business costs have contributed to the reduction in energy prices. Global energy prices surged following the start of the war in Ukraine, leading to sharp increases for consumers. The first major impact on UK customers on standard variable tariffs came in April 2022, when the energy price cap rose by 54 percent. Although prices have since eased slightly, they remain well above pre-war levels. Gas prices have nearly doubled, rising by an estimated 80 to 110 percent, while electricity prices are up by approximately 25 to 40 percent. 'In the longer term, we need an energy system where prices are insulated from the volatile international gas market, and which ensures more stable prices and energy security,' said Jarvis. Energy regulator Ofgem's sign in an undated file photo. Yui Mok/PA Criticism of the Regulatory System The wider energy regulatory framework is also under growing scrutiny. Citizens Advice, the national network of charities, has warned that nearly 7 million people in the UK are living in households that have fallen behind on their energy bills. 'Today's announcement will be cold comfort to the millions paying off a mountain of debt on top of their monthly costs,' said the organisation's chief executive, Dame Clare Moriarty. A In response, the Energy Networks Association (ENA) said Britain has one of the most reliable grids and called the report 'overly simplistic.' The ENA said the analysis ignored long-term investment plans, including over £100 billion due to be spent between 2021 and 2031. They also stressed the importance of a stable regulatory system. Moriarty urged ministers to provide more targeted support with energy bills, particularly for pensioners affected by cuts to the winter fuel payments (WFPs). Trade unions have also raised concerns about the role of Ofgem and the structure of the market itself. Unite General Secretary Sharon Graham said the regulator had lost public trust and accused it of allowing multinational companies to make excessive profits. She called for urgent reform to address what she described as deep-rooted problems in the energy system. 'We urgently need to reverse the market madness and address the real causes of the lingering energy crisis,' she said. Little Relief for Older Households Pensioners in particular may see little benefit from the cap reduction. According to the End Fuel Poverty Coalition, more than 3 million pensioner households face unaffordable energy bills. Nearly a million of these are in deep fuel poverty, meaning they spend more than 20 percent of their income on energy. Until 2024, all pensioners could receive a WFP of £200 a year, or £300 if someone in the household was over 80. It was paid regardless of income or savings, but cuts to the benefit meant that it would only go to low-income pensioners. The WFP has not increased since 2000 and in real terms its value has halved. The average summer energy bill now consumes more than 60 percent of the standard £200 WFP. This week, in what appeared to be a policy shift, Starmer Speaking during Prime Minister's Questions, he acknowledged the ongoing cost pressures facing pensioners. 'As the economy improves, we want to make sure people feel those improvements in their days as their lives go forward. That is why we want to ensure that, as we go forward, more pensioners are eligible for winter fuel payments.' He said the government will 'only make decisions we can afford' and will therefore look at this as part of a fiscal event.
Daily Record
19-05-2025
- Business
- Daily Record
Millions default on energy bills as debt hits record high - here's how to get help
More than 2.7 per cent of gas and electricity Direct Debit payments failed in April. More British households than ever are defaulting on their energy bills, with new figures from the Office for National Statistics (ONS) showing just how tough things are right now. Last month (April), more than 2.7 per cent of gas and electricity direct debits failed because there wasn't enough money in people's accounts. That's the highest rate since records began in 2019 - and three times higher than before the energy crisis hit. At the same time, more people are missing loan repayments, often taken out to cover everyday costs. Nearly 3.9 per cent of Direct Debit loan payments failed last month, compared to just over 2 per cent during the pandemic. Even though the energy price cap has come down slightly this year, millions are still struggling with the impact of last winter's high bills. While the recent unseasonably warm weather means many households are using less energy right now, it hasn't eased the burden for those already in debt. For people who fell behind over the colder months, lower usage now doesn't undo the damage that's already been done. Matthew Sheeran, energy expert at Money Wellness, said: 'These figures are deeply worrying, but they're not surprising. More and more people are facing impossible decisions between heating their homes, feeding their families or keeping up with repayments. 'The good news is that help is available, from supplier grants to debt write-offs. The earlier people ask for support, the better their chances of turning things around.' Financial help to reduce energy debt Here are six practical tips Money Wellness recommends for getting support with your energy bills. Apply for energy grants and hardship funds Most suppliers offer grants to help people struggling with energy bills. These don't need to be paid back and can help clear arrears or reduce future bills. The British Gas Energy Trust, for example, is open to anyone, not just British Gas customers, and has written off thousands of pounds in energy debt. EDF, Octopus, and also run similar schemes. You'll usually need to complete a budget form and provide meter readings and income details. Contact your supplier directly to see what's available. Talk to your supplier as early as possible It might feel intimidating, but the best thing you can do if you're falling behind is speak to your energy company. They're legally required to help you if you're struggling. That could mean a more manageable payment plan, time to apply for grants, or switching to a better tariff. The earlier you get in touch, the more they can do. Look into energy efficiency upgrades Improving how your home uses energy can help reduce bills long-term. The government's Great British Insulation Scheme offers free or discounted insulation and other upgrades if your home has a low energy rating and is in council tax bands A to D. These changes, like better insulation or heating controls, could cut hundreds of pounds a year from your bill. You can check your eligibility online. Get free debt advice and explore ways to reduce what you owe If you've got more than just energy debt, speak to a free, regulated debt adviser who can help. Non-profit organisations such as the Citizens Advice network, Christians Against Poverty and the National Debt Helpline offer free, impartial and confidential advice. Use budgeting tools to stay in control When money's tight, having a clear view of where it's going can really help. Use a free budgeting tool to help you track spending and spot savings. It might also be useful to see if you're missing out on any benefit support or government grants using a free online checker. Many people discover support they didn't know they were entitled to. Small changes can quickly add up and really help. Check if you are eligible for the Warm Home Discount This winter scheme gives £150 off your electricity bill during the colder months. If you get the Guarantee Credit part of Pension Credit, it's applied automatically. Others on low incomes may also qualify, depending on their circumstances. In England and Wales, most people don't need to apply, but in Scotland, you might still need to contact your supplier. Full details can be found on here.
Daily Record
14-05-2025
- Business
- Daily Record
Martin Lewis urges people to check for energy bill refunds now
Energy firms are reportedly sitting on £3 billion of customer cash from Direct Debit payments. Martin Lewis is urging everyone paying their energy bills by monthly Direct Debit to check whether they have built up too much credit with their provider and could be due refunds this month. White co-presenting Good Morning Britain (GMB) with Susanna Reid on Wednesday, the consumer champion explained that this period of time is the lowest point in the 'energy debt cycle'. That simply means credit accrued on your account during the colder months - when you typically use more energy - has passed and the warmer weather puts less of a demand on heating your home. As a result, Direct Debit customers who have more than a month and a half's worth of crest built up can ask for all or some of it back to help with other costs. Martin told GMB viewers that energy firms are sitting on around £3 billion of cash, derived from Direct Debit payments. The financial guru explained that to get your money back you need to have a working smart meter and pay your bills by Direct Debit. He also advised keeping a 'buffer' amount on your energy account for any unexpected usage and peace of mind when the colder weather returns. Martin said: 'If you go and check your credit and you have substantial credit on your monthly Direct Debit energy account right now you have too much and you should be asking for it back - that's why we're doing it today. 'My rule of thumb - and I can't get an amount because it depends on the proportion of how much you pay - if you have more than a month and a half worth of Direct Debit in credit right now, get in touch with your energy supplier and ask for a refund.' He explained that you need to check if your Direct Debit amount is right first, then call and tell them you have 'too much credit and would like that cash back'. Martin also explained that underlegislation, energy firms are obligated to refund your money under these circumstances and if they don't, contact the free energy ombudsman service. He also shared one viewer's success story. Diane discovered she had £1,000 in credit, contacted her energy supplier and got an £800 refund. She opted to leave £200 in the account as a buffer. Another viewer, LIz, had £800 in credit and emailed Octopus Energy for a refund. She got £500 cash back and left 3300 on her energy account. The financial guru recently covered energy credit refunds in the MoneySavingExpert newsletter, and it's something he has shared on his Podcast and TV show, to help people put more money back in their pockets. Martin has previously explained taking regular meter readings is key to ensuring energy bill estimates are accurate and people pay close to what their energy usage expectations are predicted to be by their provider. Martin Lewis two-step check for energy refunds Martin shared a couple of checks to do before contacting your energy supplier. The first is to make sure you're up to date with meter readings as most people receive a refund at the end of the year if they've built up too much credit. The second is to check how much credit you've built up and if it's around a month and half's worth of Direct Debits, then contact your supplier and ask for some, or all of it back - depending on how much money is there. You can read Martin's full guide to getting energy bill refunds on here.
Finextra
14-05-2025
- Business
- Finextra
Iplicit partners GoCardless for in-app direct debit functionality
Cloud accounting fintech has announced a new update to its product, in partnership with bank payment provider GoCardless. iplicit, which is purpose-built for the UK and Ireland's mid-market, will bring GoCardless' Direct Debit capabilities to customers using its cloud accounting platform. 0 This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author. The arrival of GoCardless' Direct Debit features follows the successful roll-out of its open banking-powered Instant Bank Pay to iplicit customers in the first quarter of 2025. Organisations using iplicit will now benefit from a simple in-app interface for managing and automating their Direct Debit payments, powered by GoCardless, with features such as: • Automatic scheduling for one-off or recurring payments on invoice due dates, minimising late payments • Automated payment collection and reconciliation, reducing time-consuming financial admin thanks to connections with over 350 GoCardless partners • User-friendly payment set up, allowing for easy and secure collection of payment details online via customisable payment page or payment link • Payment tracking and visibility, allowing collection at first time of asking and using payment intelligence to retry failed payments at optimal times Direct Debit payments are pull based, meaning that iplicit users, as merchants, initiate the payment once given a mandate by their customer. Direct Debit payments are also bank-to-bank, with no card networks - and the associated high fees - involved. By adding GoCardless' Direct Debit capabilities to Instant Bank Pay, iplicit can now offer busy businesses one place to manage recurring and one-off payments, helping them streamline their operations to save time and money. iplicit announced the extension of its partnership with GoCardless at Accountex in London's ExCel. Having collected its own payments via GoCardless since 2019, the award-winning accounting software provider is confident that the partnership will answer the Direct Debit needs of its midmarket customer base. This includes customers across a variety of verticals, such as non-profit, recruitment, education, fintech, SaaS, and multi-academy trusts. Paul Sparkes, Chief Product Officer at iplicit adds: 'At iplicit, we prioritise listening to the needs of our midmarket customers to continually refine our product and identify ways of improving their day-to-day financial admin and cashflow.' 'Our ongoing partnership with GoCardless, a leader in the payments space, allows us to offer exactly what these customers need, which is a straightforward, seamless, and reliable solution for automating and collecting Direct Debit payments. This eliminates the inefficiencies and errors common with manual payment collection and chasing of failed or missed payments. Merchants using iplicit can now enjoy reliable cashflow and added confidence when managing their recurring payments.' Born in the cloud, iplicit's state-of-the-art platform is specifically tailored for businesses that have outgrown basic entry-level systems or grown frustrated with legacy on-premises vendors. It delivers the advanced functionality and performance of upmarket systems at a fraction of the cost and complexity. Tom Metcalfe, Director, UK&I Partnerships at GoCardless, said: 'We're excited to follow our successful introduction of Instant Bank Pay with this Direct Debit integration. iplicit customers now have an all-in-one solution for recurring and one-off payments, directly within a platform they know and trust. This will help them get paid on time, save time and money, and win and retain more customers.'
