Martin Lewis shares 'no brainer' energy deal that could save you over £50 a year

12 December 2023 , 21:05

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The Martin Lewis Money Show returned to screens last night for the final show of the year (Image: ITV)

Martin Lewis has shared the one energy tariff currently on the market that will save you £50 a year on bills.

Martin Lewis was back tonight for the final Martin Lewis Money Show of the year. Tonight's episode was an "Ask Martin Anything" special and saw the Money Saving Expert (MSE) website founder answer a wide range of viewer's questions.

However, when opening the show Martin told viewers that he had changed it slightly at the last minute. This was because E.ON Next made a major change to one of its tariffs and by fixing with this one, energy customers could save money on their bills over the next year.

Martin said: "I've been waiting a couple of years to say this. Finally, there are some switchable energy deals that will save you money. Not huge, but it's better than now."

"So this is the big news that has changed this week. It isn't the greatest saving in the world, but at last, I'm able to say that is an easy deal. Many people can get to save money on energy as it's 3% cheaper than the price cap and it's the E.on Next Pledge tariff."

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Martin explained to viewers that the E.on Next Pledge tariff is a variable tariff that does track Ofgem's price cap - so it will go up when the price cap rises but it will go down when it drops. However, the energy rates offered are 3% cheaper than the price cap for average use. The Money Saving Expert founder said this deal would save someone on typical use around £50 a year on their energy bills.

Originally this deal was only available for existing E.on Next customers however this has now changed and anybody can switch to it. Martin added: "So for somebody on typical use, it's roughly £50 a year savings. But the bigger user you are the more you get the benefit because it's a discount on the unit rate."

However, there is a small catch with this tariff. The catch is that it is only available to dual-fuel and electricity-only customers who pay by direct debit. Alongside this, you will also need to agree to get a smart meter.

Martin said: "It does have early exit penalties if you leave within a year but £25 for duel-fuel fuel is not much compared to everything else. So if you're the type of person staying on the price cap and you're happy to go to E.on Next this is quite simply a 3% saving over the next year. This is a no brainer you may as well just go with the cheaper one."

Ruby Flanagan