Advice to Switch Tariffs Could Lead to Costlier Bills for Vulnerable Households

The UK Government has come under fire for encouraging energy customers to switch tariffs despite the ongoing energy price crisis. The Department for Work and Pensions (DWP) recently sent letters to recipients of Winter Fuel Payments featuring a suggestion to save money by switching energy providers. This advice, prominently displayed on the back of envelopes, could inadvertently lead to higher bills for many households.

Conflicting Messaging
The message on the envelopes read, “What would you do with an extra £290?”—a reference to average savings made by switching to cheaper tariffs in 2020. However, the energy market has since shifted dramatically, with prices surging and cheaper tariffs no longer available. Consumers on default energy tariffs are currently protected by the government’s energy price cap, which limits how much providers can charge.

Martin Lewis, founder of MoneySavingExpert.com, called the messaging “damaging,” highlighting that most customers would be better off staying on their provider’s standard variable tariff. He explained that these tariffs are price-capped and often more affordable than fixed deals, which energy firms are aggressively marketing at inflated rates.

A Dangerous Suggestion
“This is a time of extreme energy bill pressures, and clarity of advice is crucial,” said Lewis. “The Government’s suggestion to switch tariffs reinforces misleading messages from energy providers. Many are using marketing tactics to push customers into fixed deals that are up to 30% more expensive. For most people, the best course of action is to do nothing and remain on the price-capped tariff.”

The DWP admitted that the envelopes were designed before the recent price hikes. A spokesperson clarified, “We have been encouraging tariff switching for years as a way to save money, but the message on these envelopes was a general suggestion and no further envelopes with this message will be issued.”

Support for Vulnerable Households
The government has pledged to support low-income and vulnerable groups through the energy crisis. However, consumer advocates argue that the incorrect messaging undermines these efforts. Lewis stressed the importance of clear and accurate advice, particularly for those most at risk of financial hardship during the colder months.

A Call for Better Communication
The incident underscores the need for updated and context-aware public messaging. As the energy market continues to evolve, experts emphasise that advice should reflect current realities to avoid exacerbating financial burdens on households already struggling to manage soaring costs.