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Daily Record
Daily Record
Lifestyle
Linda Howard

DWP stops sending out Winter Fuel Payment letters in envelopes marked with 'misleading' advice

The UK Government has told MoneySavingExpert.com it will stop sending out letters with envelopes wrongly advising people to switch their energy tariff after the consumer website revealed last week that the Department for Work and Pensions (DWP) had issued potentially misleading advice to millions of people.

Around 10 million low-income households eligible for the Winter Fuel Payment were sent letters inside envelopes which had been pre-printed with advice on how to switch to save "an extra £290" on their energy bill.

However, the ongoing global energy crisis has seen costs soar with more than 20 smaller suppliers going bust since September and all cheap deals from bigger providers disappear.

Martin Lewis has been very vocal about the impact of the energy crisis on households and has been actively encouraging people to “do nothing” or they could end up paying as much as 30 per cent more on their bills.

MoneySavingExpert.com reported last week that the DWP originally said it would continue to use the envelopes as it would have been "impractical, costly and wasteful" to replace them with new ones.

But it has since backed down, with a spokesman telling the consumer website: "The message on these envelopes was simply a suggestion and no further will be issued."

MoneySavingExpert.com said: "We are in an extreme energy bill crisis. The logic of how to manage bills has been turned on its head.

"There has never been a time when clarity of message and action is more important.

"That's why the [UK] Government mailing out an incorrect message to millions of people, including many of the nation's most vulnerable, is too big a risk to take.

"The right move for most people right now is to DO NOTHING - don't switch."

The consumer website explained: "That's because if you do nothing, you'll either be on or automatically moved to your provider's default standard variable tariff, which is priced-capped.

"The price cap forces energy firms to sell energy at below its cost price - there is no meaningfully cheaper option."

You can read more on this story on the MoneyASavingExpert.com website here.

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