As many as ten million people are wrongly being encouraged by the Government to switch their energy tariff - despite this costing households hundreds of pounds more.
The Department for Work and Pensions (DWP) has been posting out letters telling people to change their energy tariff in order to save "an extra £290".
But switching right now could cost families 30% more as the energy crisis means the cheapest deals have been pulled.
Instead, MoneySavingExpert founder Martin Lewis is urging people to “do nothing” as you’ll either be on, or automatically moved to your provider's default standard variable tariff.
This means you’ll be on the price cap, which sets a limit on the rates you pay for each unit of electricity and gas and is the cheapest option available right now.
The energy message from the DWP has been printed on ten million letters but the DWP hasn’t confirmed how many have already been sent out.
The message from the DWP reads: “What would you do with an extra £290?
“That’s how much the average consumer saved in 2020 by switching to the cheapest tariff on the market.”
According to MoneySavingExpert, which first reported the issue, the letters are being sent out to vulnerable families who are likely to be eligible for Winter Fuel Payments.
The DWP told MSE it will continue to send out the letters.
Citizens Advice was also referenced in the letter, with the DWP instructing families to contact the charity if they’re struggling.
MSE says Citizens Advice has now asked the Government to correct the error.
Martin Lewis 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 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.”
Are you worried about how you'll afford your energy bills this winter? Let us know: mirror.money.saving@mirror.co.uk
A spokesperson from the DWP said: “This is an initiative that has been in place for a number of years to encourage switching and the latest batch of 10 million envelopes was created before the rise in energy prices. The message is simply a suggestion.
“It would’ve been impractical, costly and wasteful to replace the 10 million envelopes with new ones, and crucially it would potentially compromise our ability to make millions of Winter Fuel Payments before Christmas.”
The energy crisis has seen twenty suppliers go under since August 2021, with some of the most recent casualties including CNG Energy and AmpowerUK Ltd.
Zebra Power, MA Energy, Omni Energy, Bluegreen Energy Services and GOTO Energy have also gone bust.
If your supplier collapses, you won't be left without gas or electricity.
Regulator Ofgem says you should take a meter reading and a new supplier will be assigned to you.
We've got more on your rights here.
