Millions of British Gas customers can get up to £175 energy bill discount – how to claim

MILLIONS of British Gas customers can get a £175 discount off their energy bills by changing the way they pay.

Some energy firms offer a bill reduction to customers who pay via direct debit.

British Gas says customers can save up to 7% off the cost of energy if they pay their bills this way.

That totals a saving of £175 a year from October, when bills will freeze at £2,500 a year under the Energy Price Guarantee.

If you pay by direct debit you'll pay your provider a set amount every month.

This isn't actually your bill, because its not the amount you're charged for your energy.

Instead, energy firms estimate how much they think you'll use over the year and divide this by 12 to determine your monthly direct debit amount.

By paying your direct debit ensures there is always enough money in your account to cover this changing cost and keep you in credit.

If you pay quarterly, the yearly estimate will be divided by four.

It's important to give up-to-date meter readings so your supplier can provide more accurate bill estimates.

That means you'll avoid paying more than you need to, as suppliers review bills regularly.

How do I set up a direct debit?

If you want to set up a direct debit, log into your online account.

You'll need a bill to hand with your bank account number, sort code, and a preferred payment date between the 1st and 28th of each month.

It takes at least 10 working days for British Gas to set up a direct debit.

You can choose to set up a fixed or a variable direct debit.

A fixed direct debit is where you pay the same amount each month on the same day - the amount you pay is based on your recent usage and outstanding balance, if any.

A variable direct debit is where you pay for what you use, when you use it - which means you may pay less in the summer and more in winter.

This is because it's unlikely that you'll be paying to heat your home during the warmer summer months.

Should I switch to get the direct debit discount?

It could be an idea to switch to pay your bills via direct debit to get a discount as costs soar.

You can also cancel your direct debit at any time through your bank - but you need to tell your energy supplier.

But if you don't want to switch payment methods, there are plenty of other ways to get help with your bills.

British Gas has recently confirmed that it'll pay its most vulnerable customers grants worth £750 to help with sky-high bills.