Time to save for kids’ uni? Time to refix your energy tariff? Plus more back-to-reality issues

20:25Martin Lewis:There is, and I suspect, and I know you've got questions on that, so I haven't gone into the detail yet, but I'm prepared to, Adrian. I'm prepared to. Don't worry, I won't delay. I won't cancel. I'll do it. So, can I just ask you, if you do arrive late, do they tend to announce it? It says, don't forget you can claim compensation for this. We're so late. No, they don't. They don't. I mean, they will always help you with the alternative flight and cancellation, but they do not tell you. And what I would always do, I would be careful. Pilots tend to be more honest on this than airlines. So I would work out what that delay is.

21:01You know, if they say to you it's because we had scheduling issues and have a late pilot, write that down if you're going to be late. Because later on, you might find the reason, and the official reason the airline gives is to make a contemporaneous note of exactly what was said. Because I didn't say how you complain. First of all, you complain straight to the airline and there are template letters and tools available

21:20Martin Lewis:on the internet that will do this for you. You're basically writing a complaint under UK Regulation 261-2004 and then if they reject it, they should all have an alternative dispute resolution process that you can escalate it to who can make an independent adjudication. So keep your ticket stubs if you're late, keep your boarding passes if you were late and keep a note of exactly what they said, because the airline's fault is going to be the key nub on this. Nicola, delayed nine hours. 2E have said no to compensation. They're saying it was an extraordinary circumstance due to an airport strike.

21:52Is there anything I can do? So in other words, they're saying it's not the airline's fault.

21:55Martin Lewis:Well, if it was legitimately an airport strike, i.e. the planes could not take off at the time because of industrial action at the airport, I think you mean that type of strike rather than the bird strike, That is not the airline's fault and under Regulation 261-2004, you are not entitled to compensation or not entitled to this, the fixed monetary compensation. What about adverse weather? Those were my big two exceptions, adverse weather and airport issues. Most delays that come in, though, tend to be knock-on problems because of previous flights being delayed. So, you know, it's always the case if you're getting a budget airline, you'll tend to find you'll arrive more on time if you get it in the morning than the evening because they tend to have knock on problems.

22:37Martin Lewis:That's where they come. Now, there can be some subtle arguments on that. But I would always if the reason that your flight is delayed is because the previous one is delayed, even if arguably the previous one was delayed because of an airport or weather issue. But your current one isn't delayed because of an airport or weather issue. It's delayed because of a scheduling issue that the airline did not have a plane in place. it's not your issue what that plane was doing before it came to you, then I would try and push that as the airline's fault. What happens if you have a delayed flight which causes you to miss a connecting flight?

23:05Is it travel insurance or the airline company you claim from? And do they arrange a different onward flight? Also, can you claim for a day lost in the hotel stay if you book seven days but can only say six because your flight delay meant you arrived a day later than planned?

23:19Martin Lewis:I presume that's a person's specific question. Yeah. Yeah. OK, so let's do this one. the whole point of this regulation is there's a fixed monetary compensation if you have had knock-on costs that's way more difficult and that's generally what your travel insurance is for but the issue of two flights in a row is very important if you booked a flight with an airline and the flight you booked had two flights and they were connecting so let's give this an example you're flying from London to Dubai and you're connecting in Turkey. I've just made it up, right? Connecting in Istanbul. And you booked that with one airline as one flight, but it has a connection.

24:03Martin Lewis:Then what counts is the final delay at the destination. It wasn't a stopover. It was a connecting flight. It was one contiguous trip that you did. Therefore, if you arrive at your final destination late, especially if you know you miss one plane and you arrive late, airline, it applies under this regulation. If you booked two separate flights and your first flight arrives two hours 30 late, which means you missed your second flight, but they were not from the same airline, the airline is not responsible. It is only responsible for the flight that you booked. That first flight was not over three hours late.

24:41Martin Lewis:It doesn't know that you've got a connecting flight no in we're in that case that's when you go to your travel insurance your travel insurance is your mop up where you don't have rights elsewhere now whether the travel insurance will cover you depends on your exact policy and you have the scheduled airlines type cover that you would need for that so the regulation would cover you if it's one continuous flight the travel insurance that's who you go to in all of the circumstances whether you've got the cover or not depends on the policy. Have I explained that? Does that make sense? Yes. Yeah, it does.

25:16I was not the one. If you buy a holiday with Chewy, but they use EasyJet, who do you claim from if there's a delay? Very simple. These regulations cover the carrier airline, the airline that you are with. Chewy does have its own flights, but in this case, it was operating as a tour operator, I would assume. This compensation, you are due from the airline. So this is an easy jet issue in that case, because it was easy jet that you had your delay with. And that's how 261-2004 works. We're heavily into Martin Lewis. Adrian. Yes, go on. Can I interrupt you to tell you a weird phenomenon I'm experiencing?

25:55Go on. So over the summer, they put out some special best of podcasts and I listen to them. And I listen to my podcast when I'm listening to it through. I listen to it on double speed. Right, when I listen to audiobooks and other things, I tend to be on about 1.6, 1.7 times speed. So my ears have got very used to listening at double speed. And now when you're in a radio studio, you'll know this, I have earphones on and you get a little bit of reverberation so you can sort of hear yourself talking through so that we can hear the conversation. And my brain is finding it very difficult because I sound like I'm on super slow-mo.

26:28Because I've got so used to listening to myself in this format on double speed, it's really very strange. and I know lots of people will say you're already on double speed. You do not need to be... I'm hearing myself as if I'm talking in slow motion. I don't know whether there's any medical name for what I'm experiencing right now.

26:46Martin Lewis:I think it's a relatively new phenomenon, but it's really quite bizarre. Really? That is so interesting. I mean, this is a very sort of 2026 thing, isn't it? You won't be the only person experiencing it. I suppose I must still sound... I must sound even more ponderous than I am at normal speed. Yeah, I'm finding it more the experience with me than the experience with you. When you listen, what do you listen at? Are you a fast listener? Yeah, well, I never listen to myself. I just can't bear it. But it depends sometimes. I have very similar feelings, but I feel it's important to know if I've said the right thing.

27:22No, no, of course, I understand that. But for research, if I've got to get through a book, I can go as high as double speed, but I have to build up to it, 1.1, 1.2, 1.3.

27:33Martin Lewis:So I'm standard 1.5 and I go up to 2. If I could go faster than 2, so when the producers send me the podcast through, when I listen to that, I would do it at 2.2. Lara, my wife, she listens to things at 2.2 as standard. I mean, that's just her standard. But she's used to listening to you. She's used to being married to me. She's used to the fast talk. I just want to ask my producer something. Can we just get a little bit of Martin talking and then I want to play it back What do you say you listen to? 1.5? No, 2. I listen at 2. I want to listen to Martin Lewis. I want to hear what Martin Lewis sounds like at double speed.

28:07Martin Lewis:But remember, it needs to be done on the proper way where you don't... It's not... So you can play an old podcast. They play 30 seconds from an old podcast. It'll take 15 seconds. All right. OK. Our team are working on this. Where were we? They should work at it at the double. OK. Tell us then. Tell us about your tellus. Very simple. Tell us. Oh, what's that? No, stop. Stop. Stop. Stop the music. This is about early preparation, not early celebration of Christmas. There is no need for theme tunes. So the tell us is, how far along are you in your Christmas preparation? Have you already bought gifts, wrapping trees?

28:47Have you saved up? Have you budgeted or more? Or are you a, what are you on about? It's September.

28:53Martin Lewis:And I did an exclusive poll just for the show on this. In other words, I put it on my social media. asking people just to help. And of people who celebrate Christmas, so for those who said they don't do Christmas, I've cut out, there were 24 ,000 votes. 75 % of people say not close to starting, so three quarters of people are not close to starting. 18.7 % of people, this is across a few different social media, I added them all up, have done a few little things. So we'll say that's just under a fifth have done a few little things. and 6.1%, so over 1 in 20, have done a decent chunk of it so far at the start of September.

29:32There you go.

29:32Martin Lewis:And then we've got some to read out. Why don't you start? Okay. Amanda. Bought some stuff in January. It's already wrapped. Also been saving since December for the main gifts. So that's saving since before the previous Christmas. I like Amanda. That's extreme, Amanda. aim to write cards and have bought everything by end of October half term. As far as anything else you might fall out with some of these people and not want to send them anything but I suppose you can always you can repurpose the presents. Love Christmas hate crowds and cold weather. It all makes sense. The only interesting thing about this, so look I'm a great fan of a Christmas cupboard.

30:10Martin Lewis:So there are lots of people who have a Christmas cupboard which is where you buy your present through your year when you see something at a good price and you wrap it and you put it in that Christmas cupboard waiting. The only two risks with that are, first of all, if the item is faulty, you only have an absolute right of return within 30 days. So there are some consumer rights issues with it. And second, generally, if they have a return right that is not your statutory right, but it's just this shop says you can return within 30 days, you do sort of lose the opportunity to do that. But generally, I think the early preparation is good.

30:41Martin Lewis:Matty, no. Matty says Christmas shopping doesn't start until the 24th of December. It's been getting earlier and earlier each year commercially. I refuse to play ball. Though you might pay more for doing that. You know, a very lack of flexibility on the 24th of December. Some things get discounted, but if there's something specific you want, you're generally cheaper to buy at least in the Black Friday sales when they come on in the pre-Christmas time, or even better, buy in January sales for next Christmas. Joss, we save£100 every month starting in November, so by October we have 1 ,200 for presents.

31:16Again, this goes back to the previous Christmas. Starting the previous year, yeah. A spreadsheet with names, allocated budget and websites to links where to buy presents. All shopping is done by early November and wrapping done by early December. I love it. I mean, when do they cook the turkey, July? Samuel, mate? no, stop. Have you seen the price of a tub of celebrations? Tesco just yeeted them out and looking proud of themselves for a club card price of£5.75. My nieces and nephews are getting tangerines. What is this verb to yeet? I read what it said. I'm not getting involved in the grammar.

31:58I'm actually not sure I 100 % know what it means. Do you? Well, no. I could have vague ideas when they put stuff on display. 85058, do let us know. Samuel, if you can, oh it means to chuck out a montage I think it means to put on the shelves doesn't it yeah just throwing them out there is what to yeet means is it old English or is it slang what is it? I don't think we can get into the etymology can someone call to Susie Dent yeah exactly my thoughts it was took the words out of my mouth should I try messaging her while we're on air do that, Samuel My nieces and nephews are getting tangerines. You can't buy those too early, at least.

32:43Go on, cat is the next one. Just while you're texting Susie, cat. Christmas prep goes like this. Christmas Eve, purchase the finest Indian takeaway from our local curry house. Refrigerate, Christmas Day, heat up curry, eat, nap. I can see the appeal in that, I must say. Laura, my mum's finished all her presents On air, the word yeet just came up

33:11Martin Lewis:Do you know where it came from? Hope all's good for the BBC, Martin OK There we go, that's to Susie We could double team her, I'll ask her the same question and see who she likes best And Susie did manage to reply before I finished recording the podcast Extra Stuff So if you hold on, I'll yeet out where yeet comes from Laura, my mum's finished all her presents She starts in the January sales. See, I like it. Maggie, the older I get, the more I dislike Christmas, with all the pressures to spend excessively and consequent waste. I bought a tree once, in a pot, then planted it out. It was barely two foot tall then.

33:47Martin Lewis:It's now 50 foot tall. I've done enough. Job's done, Maggie. Well done. And, of course, I will be talking at some point in the coming months about my no unnecessary Christmas present packed. Take the pressure off everybody else. Relief others from the obligation for having to buy to you. Keep it to the kids and to close family, rather than spreading the net, which just leaves everybody under pressure and making it far more of a commercial celebration than it needs to be. But that isn't today. Now, that was just an idea to see how well people are getting on. And some of you will be going, I can't believe it.

34:16Martin Lewis:And some of you have like done it all.

34:20Martin Lewis:Let's just do back to work. If you're going back to work and you need to pay for childcare or afterschool clubs, there are many people who are missing out on help that's available. It's called the Tax-Free Child Care Scheme. I personally think it's misnamed because it's not tax-free and it's not about tax. I would call it the working parents' childcare top-up because you have to be a working parent. If both of you are in a couple, you both have to be working. Your child needs to be under the age of 12 or technically your child is eligible until the September after they turn 11 or the September after they turn 16 if they have a disability.

34:56Martin Lewis:You set up an account online and then for every 80p you pay in and the account is on gov.uk, the state adds 20p, up to a maximum of£500 free every three months, up to£1 ,000 free if a child has a disability. And then you can use it to pay for any Ofsted registered and regulated childcare or the equivalents to Ofsted in other UK nations. Now, the criteria, a working parent is basically someone who is earning at least minimum national wage for their age for 16 hours a week or roughly. So for somebody aged over 21, that's earning around£203 or more a week and neither parent can earn over£100 ,000.

35:40Martin Lewis:If so, and you're paying for childcare, check that they would accept a payment from the tax-free childcare company. Almost all Ofsted regulated places do and this could include after-school clubs and do your top-ups and effectively get yourself a 25 % discount on what you're paying for childcare because the state will give you some money towards it. What you want to look up, horrible name, horrible name, doesn't work, doesn't make sense. Tax-free childcare. Tax-free childcare. I'm now playing the Mastermind team tune. Oh, go on then.

36:15Welcome back to Money Mastermind, Adrian. So far you've got 21 right and 42 wrong in this three-option multiple-choice quiz, which means you're still, sadly... N-B-R-C No better than Random Chance, but if you get it right today, Adrian, you can be better than Random Chance, and we would all like that. Now, I've been practising my accents to try and do this. I'm not sure it's going to go very well, but let's give it a go. Adrian was wistful this summer. I'm trapped in a miserable energy fix. I signed while Martin was away. The cooling-off period's gone, and now I'm trapped behind fiscal bars. My only hope is that Martin returns.

36:57Martin Lewis:the metal gates clang shut the lights dim a deep soulful voice fills the room hope is a dangerous thing hope can drive a man insane i did my morgan freeman so much better when i was practicing adrian looks up but some birds aren't meant to be caged their feathers are just too bright Adrian, get busy living or get busy paying. Now, Adrian, I'm back. Don't worry. I'm sure your sure thanks redemption will help you escape the cage once you answer this question. All that set up was to go for this, Adrian. Here we are. Legally, if you're on a fixed rate energy deal that has early exit penalties, when can the supplier no longer charge you those early exit penalties if you leave?

37:52Martin Lewis:A. Never. You can be charged them until the final day of the fix. B. In the final five days, as that is the maximum time that switching should take. Or C. Within the final 50 days. So can you be charged early exit penalties up until the day your fix ends? Up until five days before your fix ends, because that's the time it takes to switch a tariff to a different firm. or up until 50 days before the end of a fix? Well, I mean, the truth is I don't know. So what do I do? Say the answer, I think, what it should be or what I suspect? Well, talk the logic. What would you think it would be? That's what you're trying to get the right answer.

38:28We're not setting you up as a judge of how it should work.

38:32Martin Lewis:It's how it does work. Well, I'm just thinking if you're in a car finance deal, you can come out within the last year, can't you? That's sort of vaguely the same. That's a contractual deal. This is a legal arrangement. By saying legal, it's actually licensing rules. So it's off-gem regulations. It's regulatory rather than legal. But yeah, what is the regulatory rule? Can they always, if you have an early exit penalty, can they always charge it until the day that your fix ends? I would hope not. And I think 50 days sounds a bit generous in the consumer's direction. so I mean I can't believe any energy company with a straight face whether they were allowed to or not you're cancelling something four days before the end of the contract and they charge you the exit penalty so the logic there is it's five days to switch the switching rules say it must take a maximum five days so you could apply for a switch safely you wouldn't pay an exit penalty would be the logic of that particular one yes I think that sounds more sensible Are you locked in?

39:38I'm locked in. OK, Adrian, you're locked in on B. Well, first of all, you're quite right. Never is wrong. They cannot charge you until the final day. B would make sense, as I explained, because the regulations currently state if you're switching to a new company, you've got five days to switch. But I'm actually delighted to tell you, Adrian,

39:56Martin Lewis:you're wrong. The correct answer is C, within the final 50 days of a fix. From day 49 to go and less on a fixed exit energy deal, Exit fees cannot be charged. And if they are charged, then you need to get in touch with them and complain because that is a breach of regulations. Some firms also will not charge you early if you're fixing with the same company, but that's just how they operate. The actual rules state within the last 50 days, so day 49 to go unless you cannot be charged an early exit penalty. And that's quite important for where we're going now, talking about the energy situation, because there are many people who are on fixes.

40:33Martin Lewis:It's actually the biggest thing I'm being asked about is what they should do about it. I'm sorry you got it wrong, mate, but at least you got it wrong and the system was better than you thought. Absolutely. Restores my faith in the system. Just before we move on, let's have a quick blast of what Martin Lewis sounds like at the speed which he listens to stuff. And he says he's sounding slow even to himself because he's so used to listening to stuff on double speed, including himself when he listens back to podcasts. So here is what Martin Lewis sounds like at double speed. People who aren't married.

41:04Now, single could mean cohabiting with someone in a long-term partner. All my definition of single is you are not currently married or in a civil partnership. So, the classic rule, if your estate, which is all the assets that you have, property, business, shares... Okay, that'll do. That's enough. I know what's going... This is going to be in my nightmares tonight. But can I just tell you, Adrian, what you haven't worked out is when I listen to this back, the podcast version, I'm going to be listening to my double speed at double speed. I don't understand. Well, I'm listening at double speed and you've just played it at double speed, so it'll be four times speed.

41:30Oh, I say yes. I see what you mean. Who knows how that's... Maybe I'll like it. Maybe I'll try and listen and get the tech to do that in the future.

41:39So the energy price cap, 1st of October, it was announced it's going to rise again, 3.6%. So do you want anything to say on that? We got the announcement last week that the energy price cap that those who are on standard tariffs are on is going to rise 3.6%. Now, of course, that's on top of the 12.6 % rise we had in July, which we hoped would only be for the short-term summer period. So it means totally prices from October until the end of December if you're on the price cap, will be 17 % higher in April, and it's not been higher in three years. And the current prediction for the January price cap is another 10 % rise on top.

42:14Martin Lewis:And this is because the main change factor in the price cap is wholesale rates, and they're averaged over a three-month assessment period. We're already nearly three weeks through the assessment period for January, and the wholesale rates that are being assessed on are the highest they've been since the Ukraine crisis. It's spiking higher and higher as it looks less and less likely that what's going on in the Middle East will de-escalate soon. Sarah, as a question, if I'm currently on Octopus Flexible Plan, should I change to a fixed tariff now? OK, so let's just do the maths on this. Octopus Flexible Plan is Octopus's standard tariff.

42:49It's the default, I've done nothing, my fix ended and I didn't get out of it or I've never fixed tariff with Octopus. Similar is true. It's no different from any of the other main providers. all of them tend to price at or near the cap. Octopus is a fraction less than the cap,

43:05Martin Lewis:but it's basically pricing at the price cap. So your price is going to go up by around 3.6%. Now, if I could do, I'm going to try and help with some graphics here, verbal graphics. Picture the current price cap. That's what we're going to look at. That's the price that you're paying. Now, put next to it in a separate column what the cheapest fix at the moment is. The cheapest fix at the moment, it's actually a two-year fix, whether you should fix for that long is another question, is around 7.5 % less than the current PAP. Now, that cheap fix, that's locked in. So you've got a difference. You've got a difference.

43:40Martin Lewis:It's 7 % less than where you would currently pay. And that fix rate stays for the next two years. I should note, and this is quite important depending on when you're listening, I'm hearing strong rumours that most of the cheapest fixes on the market will be gone by the end of this week. So that's by Friday, the 4th of September. they're going to be more expensive next week. So you really want, if you're going to be doing this, you want to be doing this quickly. So anyway, so currently you can save 7 % with the cheapest fix over the current price cap. That price cap is rising 3.6 % on the 1st of October.

44:14Martin Lewis:Now remember, electricity VAT has gone, but that's gone from both the price cap and it's gone from your fix. So any fix would get cheaper on the 1st of October. So on the 1st of October, you've actually got the cheapest fix at the moment is 10.5 % roughly cheaper than the October price cap. Then we get to January. Now, of course, that's much more crystal ball gazing. But we're already three weeks through the 13-week assessment period for January, and it's been the highest rates we've seen, which is why the prediction is another 10 % rise. For the January price cap to drop below where you wouldn't save on the current cheapest fix, we would need for the rest of the period it to be substantially cheaper than it was before the outbreak of the Middle East conflict.

45:00Martin Lewis:And that conflict doesn't look like it's going away. So it is pretty unthinkable that January's price cap won't be more expensive than the cheapest fix. And far more likely, January's price cap will be significantly more expensive than the cheapest fix today. So I'm talking about today's cheap fixes, which means if you fix today on the cheapest fixes on the market, not on Octopus's fixes, because it isn't offering any particularly cheap fixes, I'm only talking about going and doing a comparison on a whole of market comparison site and finding yourself the cheapest fixed deal, then it is virtually unthinkable.

45:35Martin Lewis:You won't be saving every month until the end of March, which is the high use period. After March, it is more difficult to know, which is why I'm slightly more worried about longer fixes than shorter fixes. But just make sure the early exit penalties aren't too big. If you go for a longer fix, then if things did radically change and get cheaper, you could always pay your 50 quid per fuel and get out of it. So the answer to your question is, should you stay on Octopus? Was it Octopus is flexible? Did she say go to an Octopus fix or to fix? To a fixed tariff. Make sure it's the cheapest fix on the market.

46:05Martin Lewis:On the very, very strong balance of probabilities, you will save, I would estimate, 10 to 15 % on the way it's looking right now by going on to the cheapest fix on what you would pay until the end of March. And if you've got a one-year fix, It wouldn't last that much longer than that anyway, and the use is lower at that point. I mean, I can't say... You might continue saving afterwards, but I can't say that. But we definitely know you'd save until the end of the year. I think it is very, very likely you'd be saving until the end of March. Joanne's question is very long. I don't think... It'll probably take me to the rest of the programme to read it.

46:37You might want to save that one for the podcast. OK. Is that right? Anne says, my... Is it that long? Wow. Simple one. My fix ends 30th September. What's the best thing to do? your fix ends 30th of september so you are effectively in you're a price cap i mean you're on the price cap you may not feel it but remember it takes you five days to switch your issue is you pretty much don't want to go to the price cap when that ends because that price cap is going to

47:06Martin Lewis:go up the question for you is because you have no early exit penalties should you wait until the 30th of September or a few days before it to move off your cheaper fix or should you go now? In your very specific case, the risk averse thing is to fix now and I mean this week because I'm worried with what's happening with wholesale rates that the fixes available next week will be quite a lot more expensive than the cheapest ones available whole of market right now. Remember, most comparison sites aren't whole of market, they hide the cheapest tariffs. You can probably work out where one that doesn't is but I can't say it.

47:37Martin Lewis:So if I were you, I would probably be fixing this week. I cannot guarantee that you might, if the Middle East conflict ended in a week's time, you would be better waiting to fix, but we don't know that's going to happen. So my phrase is quite deliberate. The risk-averse thing to do with a fix ending 30th of September, in other words, it's almost over, and you can't be charged early exit penalties, I think is to refix again this week. Okay, and Tanya, so if we fix the 10th of December, should we pay the exit fee? There I think that's totally different logic. If you're having to pay the exit fee, you are almost certainly on a far, far cheaper fix than the fixes available right now, maybe even 10, 15 % cheaper.

48:17Martin Lewis:We don't know where we'll be in December. You know, there is a much more realistic chance things might have sorted themselves out a bit and de-escalated by December. The fixes available right now are not that cheap. So I would probably bird in the hand, I'll do more of this in the podcast, I'd bird in the hand, stay on the fix that you're on until nearer December and keep the savings coming in until now and cross your fingers that cheaper fixes are available or at least cheap fixes are available then. But it is unknowable. So it's all about how risk-averse you are. Thank you very much. I've enjoyed talking to you so much.

48:46I'm going to listen to it back on half speed.

48:49Martin Lewis:You can do it. If they think I'm too fast, you can do it on half speed. I'm sure it's fine.

48:59Hello and welcome to the pod only extra session. I've got a lot more of your energy questions that I want to continue to go through. I've also got a few more of my back-to-life, back-to-reality tips I want to give you. And I am joined by podcast producer Simon. Hello, Si. Hi, yeah, delighted to be back. Now, I've got a reply from Susie Dent

49:18Martin Lewis:before we do anything else. Very exciting. Let me read it directly. I said, do you know where the word yeet came from? She says, as in to throw with force or the exclamation of excitement. She's also in a studio, because I told her I was in the studio, but I think it's sound symbolism in both. Oxford says it's an early 21st century, origin uncertain, popularised by videos on the formal social media service Vine. So we're on Radio 5 but we can blame Radio 2 Vine anyway. Yes, I know, I know it's not the same Vine. It was just a gag. Not a particularly good one but hey, I'm just riffing and reading and trying to do everything at the time.

49:58Martin Lewis:Help me, Simon, give me some energy questions. We have never let a bad joke get in the way of putting it on air. Correct. And we're not going to start that now. We've got a question, more questions on energy. The much trailed long question from Joanne. Let's start with that one. Adrian didn't fancy. Feel free to listen to this on two times. Was it really that long? I don't know. I'll take your view on it in about 15 minutes. Hold on. Wait, wait, wait, wait, wait. Hold on. Wait one second. Stopwatch. Okay, I've got my stopwatch. Let's see how long the question takes to ask. Go. Joanne, I'm due to come off a fixed rate with EDF for gas and electric.

50:29I rang for advice and at the moment they said it would be better to stick to the standard variable. As that was the best price and at the same as a fix I was coming off. All other fixes wanted a direct debit payment£30 more a month than I'm paying, which I refused as I am in credit with them and pay more in my standing charges than I do in my usage. They have agreed to keep my direct debit at the price I am paying now, but didn't acknowledge that they charge me more for standing charges than I pay for usage. Not the unit price, but the energy I actually use.

51:01Martin Lewis:So it's 41 seconds. It was long. I don't know it was that long. So there's two distinct things going on in here. First of all, you won't be able to get a fix with EDF that's cheaper than the price cap. Currently, it'll probably be cheaper than the October price cap. And you're coming off your fix, you're definitely going to pay more because everything is more expensive than it was if you fixed a year ago. So if you want a fix, I mean, I would be looking at going and doing a full market comparison, and making sure you're going and looking at all the tariffs available on the market. As for the standing charge issue, I mean, ultimately, that's the way that it works.

51:33Martin Lewis:And it's Ofgem who set what the level of the standing charge is on the price cap. I think it should be lowered. I've talked about it at infinitum that it should be lowered many times. There is one tariff you could look at. Because what I'm getting from that, if you're saying that your unit rate total costs is less than the standing charge, I mean, that's very, very low. that means your total energy cost must be less than£600 a year, which is freakishly low. But I don't know, maybe you've got solar panels driving it or something else that's doing that. Then British Gas has a tariff that is effectively, it's a tracker tariff.

52:06Martin Lewis:So it tracks the price cap on unit rate, but it discounts your standing charges by£60 a year. It's only generally a saving for people who are very, very low users. but sounds like you are a very very low user if i've understood it correctly in which case you may want to have a look at that as well as look at the fixes that are available out there and i am talking about fixes at the moment because that's the main decision i mean there are always ev tariffs and solar tariffs and even sophisticated time of use tariffs like the ones octopus offers but those are more complicated decisions and i'm going to focus because there are so many people who are just not sure what to do at the moment i'm going to focus on the big picture choice which is variable versus fix.

52:46Martin Lewis:And fix is the simple, easy way to save for most people who are currently on a price-capped tariff. In terms of the thing Joanne says about ringing for advice, presumably she rang her provider for advice. Well, she rang her provider to ask, and what your provider will tell you is what is the situation available with our tariff choices. Yeah, so they're not going to give you... They will not be comparing across the market. They'll be saying our fix is compared to your variable. So that's something for everyone to bear in mind. Next up, at SkinnyManPFC, what does a price cap actually achieve? Surely every company will simply pitch their prices as close to the maximum as possible.

53:21If an energy company genuinely wants to attract customers, why wouldn't they undercut the cap by a significant margin? Well, that is virtually what does happen and that's how the market works. Let's remember the price cap only applies to standard variable tariffs. If a tariff is not a standard variable tariff, it can charge more or less than the price cap. And if it is a price cap tariff, the word is capped. They don't have to charge the cap.

53:46Martin Lewis:But before we had the price cap, what we used to have is instead of having this singular announcement by the regulator of Chem that would tell you what's going to happen to the price cap, every company would make an announcement over its tariff rates when prices were moving. And you'd get these, you know, British Gas says it's going to be putting them up 12 percent. And then they were always like sheep. That used to be my impression. then a week later you might have Eon or EDF saying the same thing and gradually they would all move in line with each other roughly. The exact changes wouldn't be the same but there wasn't an exact price cap so the the differentials it wasn't like at the moment they're all at a price cap so when they move up they're all moving the same.

54:23Martin Lewis:Now while you are quite right all companies that I know of bar one on their standard variable tariff price at or very near the price cap. The exception is a called Home Energy, a small provider, it only has a standard tariff and its standard tariff is significantly cheaper than the price gap. So if you wanted to go on a variable deal, that would be a much cheaper variable deal. And arguably its rates at the moment are slightly cheaper than the cheapest fixes. So it is the cheapest tariff available. The difficulty is it's variable. So its rate moves, whereas with a fixed tariff, and we don't know how it will move because it will move it based on its own competitive advantage.

55:03Martin Lewis:Whereas with a fixed tariff, you are locking in at a rate for a time period. And when I say locking in, that means your unit rates and standing charges are locked in. Obviously, you use more, you pay more. Now, the second part of the question is why don't firms significantly undercut that? Well, they do. They do it with their fixes. And I've explained this here before, but it's important to just go through it again. The structure of the market means there is a time lag issue. And you can sometimes arbitrage that and sometimes it works against you. Arbitrage, you know, play the differences. So let's just remember this.

55:35We already know what the price cap in October will be. So the price cap in October is not based on October's wholesale rates. It's actually based the underlying data. I mean, it has other policy costs and other things too, but the underlying

55:49Martin Lewis:changeable data was the price you'll pay in October is based on wholesale rates from the middle of May to the middle of August. The price you'll pay in January is based on wholesale rates from the middle of August to the middle of November. So the price cap is substantially time lagged. On average, it's based on a price three and a half months old. You know, once we're in November, it's five and a half months old. So it isn't keeping up with the market. Now, when the market is escalating, that means your price is rising more slowly than the market. When the market is dropping, your price is dropping more slowly in the market, slow to rise, slow to fall.

56:30When you are getting a fixed rate tariff, and I can genuinely, the rate you can fix at,

56:35Martin Lewis:unless they're offering special deals, tends to change every day. They'll shave a couple of percentage points off, they'll add a couple of percentage points on based on wholesale rates. The rate you can fix at is far more based on the wholesale rate of that day, the day, or at least, let's say, smooth it, that week that you're getting it. So right now, the reason I can say to you, I think fixes will likely be more expensive next week is because wholesale rates have been ramping up this week, which means a very simple look, well, they're probably not going to offer more expensive fixes next week because wholesale rates are higher at the end of the week than they were at the beginning of the week.

57:11Martin Lewis:So most of the cheap fixes will likely be pulled. I don't know that, but that's the pattern that it's based on. So what happens is, and this is this whole duality that I've got with whether you should refix if you're on another fix. Just to really explain this, I talked earlier, I went through in no uncertain terms why, in my view, if you are on the price cap, fixing now will save you money until at least next March and probably significantly beyond that. So that's the first logic point. And in a way, if I'm talking to people who never switch and don't want to switch, I'm probably talking outside the type of people who listen to this podcast and certainly listen to this end bit, then that's the message and where I should probably stop.

57:54But there is a secondary message here. And the secondary message is the rate you can fix that right now is very high. So just to put this in perspective, I've checked, fixes were about 7 % cheaper than they are now about two months ago.

58:09Martin Lewis:And they were 15 % cheaper than they are now before the latest part of the Iran-US conflict started. So if that Middle East conflict were to end, while there would still be supply issues, so I wouldn't expect places to rock it down to where they used to be, they would certainly drop and you would be able to get a cheaper fix. And the rate that you can get a new fix at is far more reactive to what's going on on those wholesale rates than the price cap, because the price cap is an average over a three-month period and based on a time lag. So this is my problem when people ask me, I'm on a fix, it ends next February.

58:45Martin Lewis:Should I get off it now? Well, the data I have is you will almost certainly be saving staying on your fix until February than you would getting a new fix because new fixes are more expensive. The data I have on fixed rates after February does not exist. Many people mistakenly think that fixed rates move with the price cap. They don't. They move with wholesale rates, and the price cap moves with past wholesale rates. So what will happen in next February will depend on the geopolitical situation next February. If the Middle East conflict has de-escalated, you will almost certainly be able to fix next February at a lower rate than you can fix at now.

59:24Martin Lewis:In other words, if you fix now, you would be throwing away all the savings you'd make until next February, and then it would be cheaper next February anyway otherwise. But if the Middle East were to continue to escalate, then you might make a saving after next February if you fix now, because fixes could be even more expensive then. So my whole big thing, and the reason I say bird in the hand, is it is so unknowable what the rate of future fixes will be in the hugely volatile world that we have right now. If I had a cheap fix until next February, I would not pay early exit penalties right now to get off that cheap fix in order to fix at a much more expensive cost.

1:00:02Martin Lewis:I would take the savings while I've got them and I would cross my fingers, because it's based on the total unknowable, that things will at least be better or maybe no worse next February and get a cheap fix then. But clearly, I can't guarantee it. Yet when I talk about the price cap, because the price cap is based on past prices, I can be much more robust in knowing what's going to happen. That wasn't what the question asked, but I hope it was an interesting explanation. Well, we actually have a question. Tanya's question kind of follows on from that. So we're fixed till the 10th of December 2026.

1:00:34Should we pay the exit fee and lock in a new 18 months fix, which will cost an additional£252 a year compared to the current tariff and usage? I don't know. I may be wrong, but I wouldn't. And you can probably work that out from what I've just said, would be my answer. So I can't give you a firm because I don't know what fixes will be in December. But I would bag that saving while you've got it and cross your fingers. But I could be wrong.

1:01:00Martin Lewis:If you're really, really, really risk averse, if you're so, so, so scared that things could get even worse and you couldn't afford it, you might want to lock in at a fix now if you can afford it and then just close your eyes to if it would have been cheaper to wait. But my personal instinct would be I would hold on to my cheap deal as long as I've got it. So is that the last one on energy, Si? That is all we've got on energy. And that's where you want to get to on energy, isn't it? Yeah, I think we've got the most important key bits in. It is interesting how it's actually the people who are on fixes who are asking me the questions.

1:01:29and I suspect that's because they're the people who understand it whereas those who are on the standard tariff,

1:01:33Martin Lewis:even though that's where the urgency is, I'm not sure if you're on a standard tariff and you're on the price cap, in a way I'm not sure you're really working out what's going on because if you were, you probably wouldn't be on the standard tariff. It's good how we got all the information we wanted to get in as if it was planned, not just yeeted together this podcast. We did not yeet everything together, that's right. I've got a few more quick back-to-life, back-to-reality tips that I'll finish with if that's all right. Perfect. So first one is your child aged 15 to 24. It's sort of school theme.

1:02:01Do check if they're one of 760 ,000 with a mature child trust fund with an average£2 ,000. So all UK citizens who were born between the 1st of September 2002 up until the 2nd of January 2011 automatically got a child trust fund from the state and£250 was added to it. Now, how much it's worth now depends if parents added money to and whether it was investment or savings. Investment performed better than savings, so they can be a lot bigger. Yet three quarters of a million of them are now dormant. In other words, people aren't activating them, which likely means they've lost touch with them. So if you are somebody of that age or if your child is, it is worth doing a check.

1:02:43Martin Lewis:Parents can do it for under 18s or the child can do it themselves if they're 16 or older. So if you're 16 to 18, the child can do it or the parent can do it. You just go to gov.uk and use the Find My Child Trust Fund tool. It really is worth it because it's substantial money. Next tip, for people who've been abroad and they've got holiday currency left over, the buyback rates you get at Bureau de Changes tend to be really, really poor, even worse than the rates when you got the money out in the first place. So just my quick tip on this, it's my find a friend solution. Find a family member or a colleague who's going to go where you went and cut out the middleman.

1:03:20Martin Lewis:You can even play them this for the dispute. Go online and check the spot FX rate. So you'll be able to get that from someone like xe.com. Whatever that spot FX rate is, that's the rate that you two exchange it at. That way, you'll get a far, far better rate than the buyback rate at Bureau de Changes, and they will get a better rate than they could get from a Bureau de Changes agency if they went there, because we have cut out the middleman. And I think, Simon, that's probably a good way to end. Let's cut out the middleman. I'm not quite sure whether that's me or you. I am the most expendable.

1:03:55Yeah, yeah. Sorry. Yeah, that's fine. In the spirit of efficiencies, I'll get my coat. All right. Thanks for listening, everybody. Do get in touch at

1:04:03Martin Lewis:martinlewispodcast at bbc.co.uk. If you've got any questions, and that's specifically because we have the Question Time podcast where you can ask me questions on anything and everything. So even if it doesn't fit into one of these big topics podcasts, just send it to Question Time and then Simon's colleague, podcast producer Matt, may well select it.

1:04:24That's it for this week. We tend to put out a new episode every Thursday and Monday. That's our Question Time podcast, where you can ask me absolutely anything and everything. If you enjoyed today's show, please tell your friends you've been listening to the Martin Lewis podcast. And why not subscribe and even leave us a review? Then your pockets will be pleased with you and we will be too. And if you haven't enjoyed it and you've been listening this long, na na na na na it was your own choice you could have gone it's not my problem

1:05:08martin lewis is the founder of money saving expert.com but of course other consumer and price comparison websites are available. You can get in touch with Martin's podcast production team by emailing martinlewispodcast at bbc.co.uk The offers and rates mentioned in the podcast are correct at the time of recording. However, if you are listening on demand, it's worth double checking as details can date. Remember to subscribe on BBC Sounds and leave us a review however you listen.

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