Twelve million Brits set for financial ‘shock’ this summer – and 1 move to avoid it | Personal Finance | Finance

Twelve million Brits are in for an energy bill “shock” this summer if they don’t take action. I know how easy it is to ignore these warnings; I did for years. It was only when the cost of living really started to squeeze that I finally pulled my head out of the sand, and it noticeably reduced my bills. For many households, the savings could hit the hundreds.

The millions this is aimed at are those on Standard Variable Rate (SVR) energy tariffs. Tied to Ofgem’s volatile energy price cap, these rates are forecast to jump by a staggering 12.6% on July 1 as the Iran-US war continues to wreak havoc with wholesale gas prices. For a typical dual-fuel household on a variable tariff, the average annual bill could climb from £1,641 to £1,849.

Of course, how much you actually pay depends on how much energy you use, but the impact will be felt most sharply by households still on tariffs tied to the cap. Yet, 63% of SVR customers are unaware that their rates are likely to rise in summer. A fifth (19%) even believe that their energy costs will fall, according to Uswitch’s latest survey. A similar proportion (15%) believes the switching process is too complicated, despite it taking just minutes on certain comparison sites.

What’s worse is that higher energy bills are likely to have an impact long past July. Based on current predictions, energy prices could remain higher through autumn and winter, which will be an added blow when radiators are switched back on to fend off the colder weather.

To save some cash, consider switching to a fixed-rate energy tariff. These deals lock in the price of your energy units for a set period, and at the moment, they’re looking increasingly appealing. The cheapest deals currently save around £210 against July’s cap.

Use websites such as Uswitch or Compare the Market for a new quote. Simply enter your details, such as your home address and gas and electricity usage, into their respective calculators. Here’s another handy tip that not everyone may know. Under Ofgem rules, you can switch to a new energy deal up to 49 days before your current fixed tariff ends without paying any exit fees.

Earn 50 free Tesco Clubcard points each time you vote on Britain’s Got Talent this May. With four live shows left, you can bag 200 points, worth £2 at Tesco. Just cast four votes on the ITV website during the upcoming live shows to unlock your points link. Points are credited within 48 hours.

If you’re current or former Civil Service or public sector worker – including NHS, education, armed forces, and emergency services – you could bag hefty discounts on outings with a Boundless membership. Benefits range from unlimited entry to Kew Gardens and WWT centres to free tastecards and daily discounts.

There are two types of cards on offer: Boundless and Boundless Plus, priced at £45 and £78 per year, respectively. But if you’re looking to try new things while keeping costs low, the membership often ends up paying for itself. We spoke to one member last week, who says he’s managed to save hundreds, if not thousands of pounds, using his card.

Paul Wallace, 59, of Walton-on-Thames, has capitalised on unlimited entry into WWT Arundel in Sussex, saving £28 per visit; discounted member days to Dunsfold, where Top Gear is filmed, and Port Lympne Safari Park, “saving £150” all in; as well as cheaper theatre visits, saving £20 per ticket. The father-of-five also said he saved £7,000 on a car purchased on Griffin using his Boundless membership.

He said: “When we go to London to visit our children, we try to make a proper day of it. When you combine the offers, it really adds up. We’re going out more often now, but I still feel like I’m saving.” You can also refer your immediate family for the card, too, even if they don’t work in the Civil Service or public sector.

There is an array of similar cards available, such as the Blue Light Card, priced at £4.99 for two years. It offers savings at more than 15,000 brand partners, from shops to experiences like theme parks. The National Disability Card costs £20 for two years and can be used at 600 locations, from Tesco and Odeon to Disneyland Paris.