Latest news with #MartinSLewis
Yahoo
10 hours ago
- Business
- Yahoo
Why you must take a meter reading on Monday - or risk being overcharged
Households are being urged to submit meter readings before the newly lowered Ofgem price cap comes into force on July 1 2025. Consumers should submit readings before midnight on June 30 to avoid being overcharged, and to ensure that smart meters are working properly. Accurate readings prevent suppliers from estimating usage and applying previously higher prices to energy used after June 30, as Ofgem resets the cap on what suppliers can charge every three months. The latest change from £1,849 to a lower rate of £1,720 on July 1 represents a 7% drop, with average annual bills falling by around £122. Bad news! Ofgem's energy Price Cap that dictates the rate 2/3 homes in Eng, Scot & Wales pay, is now predicted to rise even more than before. I've knocked up this table showing today's new average predictions (from 3 big firms) for the Cap for someone on supposed 'typical use';… — Martin Lewis (@MartinSLewis) June 24, 2025 However, this is still £582 more than households were paying before the energy crisis began in autumn 2021. Advice Direct Scotland, a charity which runs the national energy advice service is among charities calling for a 'longer-term solution to the scourge of fuel poverty' with a UK-wide social energy tariff, to support low-income households which would automatically place the most vulnerable people on cheaper deals. It said that anyone unable to submit readings by June 30 should do so as close to the date as possible and advised taking a photo of the meter in case of disputes, and suggested checking for more favourable tariffs. The next price cap update will be announced by Ofgem in August, and many people are still struggling with record levels of debt. More on energy bills Martin Lewis' key Energy Price Cap changes advice Energy Price Cap warning for bill payers this summer The energy 'back billing' rules Martin Lewis wants you to share Conor Forbes, policy director at Advice Direct Scotland, says: 'Lower gas and electricity prices will come as a relief for households, but bills remain significantly higher than they were before the energy crisis began. 'It's important to submit meter readings before the new price cap comes into force, to prevent being overcharged. 'For extra peace of mind, take a dated photo of the meter. If you have a smart meter, make sure it's working. 'People can also take practical action by examining their bills, finding out how much they are paying, and checking if there are cheaper options available with other suppliers. 'Struggling customers should know they do not have to suffer in silence. Our expert team is on hand for anyone who needs help, no matter their circumstances. 'However, a longer-term solution to the scourge of fuel poverty is a UK-wide social energy tariff, which would automatically put vulnerable people on the cheapest deals.' Household energy debt has reached alarming levels, underscoring just how much pressure both consumers and suppliers are under. Overall arrears remain alarmingly high, with 75% of the total debt having no repayment plan in place. The average debt per customer is £1,200, exacerbating an already pressurised market and making it increasingly difficult for both customers and suppliers to manage rising costs. 'Today's figures from Ofgem show that household energy debt has continued to rise, with an increase of £300m in Q1 of 2025, having now grown for ten consecutive quarters," says Matt Turner-Tait, Senior Manager at specialist Energy & Utilities consultancy, BFY Group. "There have been some well-intended attempts by the government and regulatory bodies to relieve the issue – such as the Warm Home Discount becoming accessible to double the number of households previously, or Ofgem's prepayment meter review prompting suppliers to return £18.6m to customers through compensation and debt write offs. "However, these measures don't provide the much-needed long term relief that customers need. "Since the covid crisis, the UK retains the most expensive electricity bills out of 25 other European countries – which highlights the need for urgent, sustainable action at policy level. Suppliers can provide some relief to customers through early engagement, accessible advice, and smarter tools for managing bills - this will help customers retain some financial stability.'
The Herald Scotland
10 hours ago
- Business
- The Herald Scotland
Check your meter before Energy Price Cap changes on Monday
Accurate readings prevent suppliers from estimating usage and applying previously higher prices to energy used after June 30, as Ofgem resets the cap on what suppliers can charge every three months. The latest change from £1,849 to a lower rate of £1,720 on July 1 represents a 7% drop, with average annual bills falling by around £122. Bad news! Ofgem's energy Price Cap that dictates the rate 2/3 homes in Eng, Scot & Wales pay, is now predicted to rise even more than before. I've knocked up this table showing today's new average predictions (from 3 big firms) for the Cap for someone on supposed 'typical use';… — Martin Lewis (@MartinSLewis) June 24, 2025 However, this is still £582 more than households were paying before the energy crisis began in autumn 2021. Advice Direct Scotland, a charity which runs the national energy advice service is among charities calling for a 'longer-term solution to the scourge of fuel poverty' with a UK-wide social energy tariff, to support low-income households which would automatically place the most vulnerable people on cheaper deals. It said that anyone unable to submit readings by June 30 should do so as close to the date as possible and advised taking a photo of the meter in case of disputes, and suggested checking for more favourable tariffs. The next price cap update will be announced by Ofgem in August, and many people are still struggling with record levels of debt. More on energy bills Conor Forbes, policy director at Advice Direct Scotland, says: 'Lower gas and electricity prices will come as a relief for households, but bills remain significantly higher than they were before the energy crisis began. 'It's important to submit meter readings before the new price cap comes into force, to prevent being overcharged. 'For extra peace of mind, take a dated photo of the meter. If you have a smart meter, make sure it's working. 'People can also take practical action by examining their bills, finding out how much they are paying, and checking if there are cheaper options available with other suppliers. 'Struggling customers should know they do not have to suffer in silence. Our expert team is on hand for anyone who needs help, no matter their circumstances. 'However, a longer-term solution to the scourge of fuel poverty is a UK-wide social energy tariff, which would automatically put vulnerable people on the cheapest deals.' Ofgem latest debt figures signal that the UK's energy affordability crisis is nearing breaking point Household energy debt has reached alarming levels, underscoring just how much pressure both consumers and suppliers are under. Overall arrears remain alarmingly high, with 75% of the total debt having no repayment plan in place. The average debt per customer is £1,200, exacerbating an already pressurised market and making it increasingly difficult for both customers and suppliers to manage rising costs. 'Today's figures from Ofgem show that household energy debt has continued to rise, with an increase of £300m in Q1 of 2025, having now grown for ten consecutive quarters," says Matt Turner-Tait, Senior Manager at specialist Energy & Utilities consultancy, BFY Group. "There have been some well-intended attempts by the government and regulatory bodies to relieve the issue – such as the Warm Home Discount becoming accessible to double the number of households previously, or Ofgem's prepayment meter review prompting suppliers to return £18.6m to customers through compensation and debt write offs. "However, these measures don't provide the much-needed long term relief that customers need. "Since the covid crisis, the UK retains the most expensive electricity bills out of 25 other European countries – which highlights the need for urgent, sustainable action at policy level. Suppliers can provide some relief to customers through early engagement, accessible advice, and smarter tools for managing bills - this will help customers retain some financial stability.'
Glasgow Times
20-06-2025
- Automotive
- Glasgow Times
Pensioners' HMRC tax codes to change for Winter Fuel Payment
Following the announcement that pensioners who receive under £35,000 a year will now receive winter fuel allowance, HMRC has confirmed it will take back the money from those with incomes above £35,000 through their tax codes, or by asking them to complete a self-assessment tax return. HMRC said: "Winter Fuel Payments will be paid automatically without a claim, and any charges will be collected via PAYE, or via self-assessment for those with other income to declare." What is a tax code? It may look like a secret code, but the formula is pretty simple (and explained below). The most common HMRC tax code is 1257L, which is based on the Personal Tax Allowance of £12,570 - this is the amount you can earn before you need to pay tax. But, many people are paying too much tax - as we go into the HMRC tax year 2025 - 2026 it's worth making sure you aren't one of them - and if so, look at how to get a rebate. Your tax code is used by your employer or pension provider to work out how much Income Tax to take from your pay or pension. HM Revenue and Customs (HMRC) will tell them which code to use. How to check your tax code You can find your tax code: by checking your tax code for the current year online - you'll need to sign in to or create an online account on on the HMRC app on your payslip on a 'Tax Code Notice' letter from HMRC, if you get one This week's 'Joker' #martinlewis break bumper: If you have a 1250L tax code - what does the number bit stand for? a) Just an ID code b) You can earn 10x that number tax free each year c) It's your additional allowance on top of the standard allowance — Martin Lewis (@MartinSLewis) February 17, 2020 If you check your tax code online or in the HMRC app, you can also: find your tax code for previous tax years sign up for paperless notifications - this means HMRC will email you when your tax code changes Check what your tax code means You can use the HMRC tax code checker to find out: what the numbers and letters in your tax code mean how much tax you will pay what you may need to do next What the numbers mean in your HMRC tax code The numbers in your tax code tell your employer or pension provider how much tax-free income you get in that tax year. HMRC works out your individual number based on your Personal Allowance and income you have not paid tax on (such as untaxed interest or part-time earnings). They also consider the value of any perks you get from your employer (such as a company car). HMRC tax code letters and what they mean The full list can be found on the website, but these are the most common, and what they mean: L - For an employee entitled to the standard tax-free Personal Allowance S - For an employee whose main home is in Scotland BR/ SBR - For a second job or pension M - For an employee whose spouse or civil partner has transferred some of their Personal Allowance (through Marriage Allowance) N - For an employee who has transferred some of their Personal Allowance to their spouse or civil partner (through Marriage Allowance) T - When HMRC needs to review some items with the employee Recommended reading: How to claim back tax with an HMRC tax rebate If you think you are on the wrong tax code, you can contact HMRC on 0300 200 330 or speak to an advisor online via their live chat service. HMRC will contact your employer to correct your tax code and you will get any money you overpaid in tax in your next payslip. You can also claim back up to four additional years if you have been overpaying for some time.
South Wales Argus
20-06-2025
- Automotive
- South Wales Argus
Pensioners' HMRC tax codes to change for Winter Fuel Payment
Following the announcement that pensioners who receive under £35,000 a year will now receive winter fuel allowance, HMRC has confirmed it will take back the money from those with incomes above £35,000 through their tax codes, or by asking them to complete a self-assessment tax return. HMRC said: "Winter Fuel Payments will be paid automatically without a claim, and any charges will be collected via PAYE, or via self-assessment for those with other income to declare." What is a tax code? It may look like a secret code, but the formula is pretty simple (and explained below). The most common HMRC tax code is 1257L, which is based on the Personal Tax Allowance of £12,570 - this is the amount you can earn before you need to pay tax. But, many people are paying too much tax - as we go into the HMRC tax year 2025 - 2026 it's worth making sure you aren't one of them - and if so, look at how to get a rebate. Your tax code is used by your employer or pension provider to work out how much Income Tax to take from your pay or pension. HM Revenue and Customs (HMRC) will tell them which code to use. How to check your tax code You can find your tax code: by checking your tax code for the current year online - you'll need to sign in to or create an online account on on the HMRC app on your payslip on a 'Tax Code Notice' letter from HMRC, if you get one This week's 'Joker' #martinlewis break bumper: If you have a 1250L tax code - what does the number bit stand for? a) Just an ID code b) You can earn 10x that number tax free each year c) It's your additional allowance on top of the standard allowance — Martin Lewis (@MartinSLewis) February 17, 2020 If you check your tax code online or in the HMRC app, you can also: find your tax code for previous tax years sign up for paperless notifications - this means HMRC will email you when your tax code changes Check what your tax code means You can use the HMRC tax code checker to find out: what the numbers and letters in your tax code mean how much tax you will pay what you may need to do next What the numbers mean in your HMRC tax code The numbers in your tax code tell your employer or pension provider how much tax-free income you get in that tax year. HMRC works out your individual number based on your Personal Allowance and income you have not paid tax on (such as untaxed interest or part-time earnings). They also consider the value of any perks you get from your employer (such as a company car). HMRC tax code letters and what they mean The full list can be found on the website, but these are the most common, and what they mean: L - For an employee entitled to the standard tax-free Personal Allowance S - For an employee whose main home is in Scotland BR/ SBR - For a second job or pension M - For an employee whose spouse or civil partner has transferred some of their Personal Allowance (through Marriage Allowance) N - For an employee who has transferred some of their Personal Allowance to their spouse or civil partner (through Marriage Allowance) T - When HMRC needs to review some items with the employee Recommended reading: How to claim back tax with an HMRC tax rebate If you think you are on the wrong tax code, you can contact HMRC on 0300 200 330 or speak to an advisor online via their live chat service. HMRC will contact your employer to correct your tax code and you will get any money you overpaid in tax in your next payslip. You can also claim back up to four additional years if you have been overpaying for some time.
Glasgow Times
18-06-2025
- Business
- Glasgow Times
Energy Price Cap warning as price set to increase in October
This follows a similar rise in April, and a cut to come in July, but will still come as a blow to customers, who face increasing bill prices and rising food costs. Martin Lewis says: "The latest predictions from Eon, British Gas & EDF have just come out. All are up on a week ago when it was predicted Oct would stay roughly the same as now (we're now 1/3 of the way through the Oct Cap assessment period). "Much of this is on the back of the rise in energy wholesale prices due to the conflict in the Middle East. Current predictions range - Up 1.6%-2.8% Oct - Up c.1% on top of that in Jan - Up c.3% on top of that next April Though the further out you go the more crystal ball gazing it is." Not great news. The Energy Price Cap now predicted to RISE about 2% or 3% in October. The latest predictions from Eon, British Gas & EDF have just come out. All are up on a week ago when it was predicted Oct would stay roughly the same as now (we're now 1/3 of the way through… — Martin Lewis (@MartinSLewis) June 17, 2025 What is the energy price cap? The term is quite confusing and it's important to note it's not the maximum price you will pay - it's an average. If you use more, you will pay more. The cap was introduced on January 1 2019 by regulator Ofgem, with the aim of preventing the millions of households on expensive variable tariffs from being ripped off. But it only limits what you pay for each unit of gas and electricity that you use. It's based roughly on wholesale energy prices (those that firms pay) and applies only to providers' standard and default tariffs, which the vast majority of households are now on. Recommended reading: Warm Home Discount There is some better news for those on very low incomes this winter, with an expansion of the £150 Warm Home Discount to 2.7m more low income households winter 2025/26. Martin Lewis added: "It'll be done by getting rid of the 'high energy cost' criteria for those on means tested benefits like Universal Credit (which helps working people and non working on low incomes). "That's good as it's a terribly implemented system which left many, literally, unfairly out in the cold."
