MSE’s Money Tips Energy bills to fall, £137,000 reclaim, 4.25% easy access, secret sales - Nike & Converse, 100Mb bro

Important. Martin's Energy Price Cap Preview
This Thursday, for the first time in two years, we'll be told UK energy prices will drop... but how does it affect what you pay? Here are my 8 key need-to-knows

At 7am on Thursday, the predictions will stop, and regulator Ofgem will tell us its new Price Cap to start on 1 July lasting three months. This dictates what almost every home in Eng, Scot & Wales pays (apart from a few on fixes) regardless of the firm. It's mostly based on wholesale energy rates from mid-Feb to mid-May. Remember though, there's NO TOTAL CAP on what you pay, it's a cap on the underlying rates, so use more, you pay more. Now let me take you through what we know, what we expect and what it means for your bills...

1. The regulator's CONFIRMED "what we currently pay will come down considerably". I pressed Ofgem's strategy head on Good Morning Britain. He wouldn't confirm the new rate, but watch him confirm what we pay will drop.

2. Price Cap rates will likely drop 35 - 40%, but what we pay will drop an average 15 - 20%. Since last Oct, what we pay hasn't been at the Price Cap, but a lower rate set by Government. It's called the Energy Price Guarantee (EPG), and kicks in when the Price Cap is too high - the state pays the difference. From July, the new lower Cap will be under the Guarantee level, so we'll pay that. Here are Cornwall Insight's average direct debit predictions (other payment methods will move a similar percent, though there can be some variance. From July, prepay will match direct debit).

In a nutshell, for every £100 you pay on energy now, you'll likely pay £80 - £85 from July

PS: The EPG rate rises 20% from July, but that shouldn't impact as the Price Cap's now cheaper (it had been due to rise in April, but thankfully the Chancellor agreed to my request to delay it).

3. Next winter, most'll likely still pay similar to the winter just gone (double the one before that). For most, the drop in the rate paid won't make up for last winter's £66 per month support. Lower users will fare worst, as the £66 was proportionately a bigger reduction on their bills. If the predictions are right, it'll still leave people paying around double or more what they did before the energy crisis hit in autumn 2021. The Price Cap seems unlikely to ever drop close to pre-crisis levels again, unless there's wholescale worldwide economic recession, not something we hope for. See help if you're struggling to pay.

4. Further government support for lower to middle income households is unlikely. From July, the state will no longer be subsidising all home energy bills via the Guarantee. This means it's spending many billions less than it expected to. So on Sunday's BBC One Kuenssberg show, I asked the Environment Secretary if any new support for lower/mid earners was due (spoiler, it's unlikely).

5. High standing charges likely to remain, it'll cost £300/yr just for the facility of having gas and electricity. It's likely it's the unit rate (cost of gas/elec) not the daily standing charge that will drop. In my view, this leaves a moral hazard that the less you use, the less you save. I have lobbied Ofgem hard on this, sadly to little avail.

6. Will this kick-start firms offering fixes? From Thu, there'll be some short-term price certainty, which may be the catalyst to restart deals. Based on current predictions, if any firm offers a fix for not much more than the July Price Cap, for the sake of certainty it's worth considering. Our Should I fix? calc will be available to help if it happens.

7. Some prepay payers should run down credit before July. We'll do more practical energy management tips as July nears, but if you've a non-smart prepay electricity meter, as you usually pay the rate from the day you top up, aim to run your credit down to the minimum by 1 July, and then top up (even a quid) to kick-start the new cheaper rates.

8. There are cost of living payments to come for those on benefits, with disabilities, & state pensioners. The first £301 benefits payment (of £900 total) has been paid. If you haven't received it, submit a claim. See full cost of living payments info.

Whooooooooooooosh...
New. Seriously fast broadband for half the cost many pay for standard speeds: 100Mb '£21/mth' | 500Mb '£30/mth'

If you've a need, a need for (serious) speed - or, less romantically, you just want to save some cash and get faster broadband, this is for you. As always, it's about pouncing on short-lived promo deals, and this week's are short and fast. So if you're one of the seven million homes out of contract, ditch, switch, save and rev it up.

Four million homes still get speeds below 30Mb (so the slowest of these fast deals is almost four times faster)
Typical cost of that broadband is £35-£45/mth (so all our deals below are faster and cheaper)

• Don't want to switch? Haggle. If you're out of contract and free to move, you're in a powerful position to haggle. In our December poll, the vast majority of those who'd haggled with the big broadband firms were successful. So use the deals above as a benchmark price to help you get your costs down. Not sure how? Read full Broadband haggling tips.
  
  
• At least 50% of customers must get the advertised speeds at peak times. The providers above also tell you the estimated max speed you're likely to get before you sign up.
  
  
• Switching usually only means about two hours' downtime. You're told the switch time, and most don't need an engineer to set it up - though some moving to or from Virgin may (you're told before applying).
  
  
• Members of cashback sites can sometimes undercut deals. In some cases, the cashback can mean these sites undercut promos elsewhere, though sometimes the deal differs - so check carefully. More in Top cashback sites.