Listen to Episode 530
This week, we explain why now might be a good time to fix your energy tariff. Even those already on a fixed-rate tariff may now be able to get a better deal without paying an exit fee. We then explain how over 900,000 pensioners could boost their retirement income by claiming an overlooked benefit
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Episode 530 Podcast Summary
Energy Prices: To fix or not to fix?
Summary
Andy takes a look at the current state of the energy market, highlighting a recent trend where fixed-price tariffs have dropped by approximately 5% since mid-November. Despite the energy price cap rising slightly in January, deals are now available that significantly undercut both the current and projected future caps. We explain why this is happening and how to check if you can save money, even if you recently fixed your tariff.
Key insights
- Fixed rates are falling: Despite the price cap rising by £3 in January, fixed tariffs have fallen by around 5% recently.
- Beat the cap: The best fixed deals currently available could save you around £250 compared to the current price cap, beating both the January rise and the predicted April cap.
- Levies removed: The removal of green levies announced in the budget should reduce bills by roughly £150 annually from April.
- Switching penalty-free: Some providers allow existing customers to switch to a cheaper internal fixed tariff without paying exit fees, so it is worth checking your account.
- Long-term outlook: Ofgem has approved a £28bn grid investment, which will initially raise bills, but efficiencies should mean the net increase is only around £30-40 by 2031.
Pension Credit: Unclaimed benefit worth £4,300 per year on average
Summary
We reveal that nearly a million pensioners are failing to claim a benefit they are entitled to. We discuss the financial value of a Pension Credit claim (averaging £4,300 per year) and reveal the eligibility criteria for the 2025/26 tax year. We also highlight the "gateway" nature of this benefit, which unlocks further financial support like the Winter Fuel Payment.
Key insights
- Billions unclaimed: There is currently £2.5 billion in unclaimed Pension Credit, with 910,000 eligible pensioners missing out.
- Latest income thresholds: For the 2025/26 tax year, Guarantee Credit tops weekly income up to £227.10 for singles and £346.60 for couples.
- Savings myth: You can still claim if you have savings. The first £10,000 is ignored; every £500 above that counts as £1 of weekly income.
- Homeowner myth: Owning a home does not disqualify you.
- Regional disparity: The South West has the lowest uptake (55%), while the North East has the highest (71%), likely due to misconceptions about affluence and homeownership.
- Gateway benefit: Claiming Pension Credit automatically qualifies you for the Winter Fuel Payment, Council Tax reductions, a free TV licence (for over-75s), and the Warm Home Discount
Episode quiz
1. The Financial Services Compensation Scheme (FSCS) protection limit for deposits increased on 1st December 2025. What is the new protection limit per eligible person (per authorised firm)?
a) £85,000
b) £100,000
c) £120,000
d) £150,000
2. How much is the Energy Price Cap set to rise by in January?
a) £3 (0.2%)
b) £30 (2%)
c) £100 (5%)
d) It is falling, not rising
3. The removal of green levies in the budget is expected to reduce annual energy bills by how much from April?
a) £50
b) £75
c) £100
d) £150
4. Approximately how many eligible pensioners are NOT claiming Pension Credit?
a) 500,000
b) 760,000
c) 910,000
d) 1.2 million
5. How much of your savings is disregarded when calculating Pension Credit eligibility?
a) £6,000
b) £10,000
c) £12,000
d) £15,000
Answers
- c) £120,000
- a) £3 (0.2%)
- d) £150
- c) 910,000
- b) £10,000
Resources
Links referred to in the podcast:
- Sign Up To The MTTM Weekly Newsletter
- Check out Damoney.ai - Our AI powered guidance engine
- Check out our Energy Comparison Tables
- Fixed energy prices fall as energy price cap set to rise
- Ofgem confirms £108 energy bill rise: What you need to know
- Gov.UK Pension Credit Calculator
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