Standing Order means lower bills.

Sea_Shell

MattMattMattUK said:

Sea_Shell said:

I think we need an animated "banging your head against a brick wall" emoji 😉🙄

The OP is another example of Dunning-Kruger in action, these kind of people seem to becoming all to regular as posters and whilst I care little for the financial issues that they cause themselves I feel for those who may follow their "advice" out of desperation. 

I had to Google that 🤣

[Deleted User]

MattMattMattUK said:

Sea_Shell said:

I think we need an animated "banging your head against a brick wall" emoji 😉🙄

The OP is another example of Dunning-Kruger in action, these kind of people seem to becoming all to regular as posters and whilst I care little for the financial issues that they cause themselves I feel for those who may follow their "advice" out of desperation. 

Sadly, the seeds are sown by members of the Press. Even ‘so called’ economics correspondents are reporting that energy bills are increasing ahead of the Cap increase.

And of course today’s good news is that we will all save an average of £1300 per year if the Government reduces VAT by 5%. Not one paper has done the simple calculation that to save £1300 people will have to spend £26000 on VAT-chargeable goods and services - and food is already 0% rated!

It is no wonder that people are frightened and confused. 

MattMattMattUK

[Deleted User] said:

MattMattMattUK said:

Sea_Shell said:

I think we need an animated "banging your head against a brick wall" emoji 😉🙄

The OP is another example of Dunning-Kruger in action, these kind of people seem to becoming all to regular as posters and whilst I care little for the financial issues that they cause themselves I feel for those who may follow their "advice" out of desperation. 

Sadly, the seeds are sown by members of the Press. Even ‘so called’ economics correspondents are reporting that energy bills are increasing ahead of the Cap increase.

And of course today’s good news is that we will all save an average of £1300 per year if the Government reduces VAT by 5%. Not one paper has done the simple calculation that to save £1300 people will have to spend £26000 on VAT-chargeable goods and services - and food is already 0% rated!

It is no wonder that people are frightened and confused. 

It was interesting that Sunak pointed out that it was regressive, would cost the country £38 billion per year and would not help low income households at all and would barely make a difference to average earners. It is estimated that to save enough to counter the cost of living rises one would need to have an income in the region of £240-300k pa to have the kind of spending on VATable goods and services. Sunak was attacked by the Truss fan club who had the response that he was "talking the country down". 

Both the BBC and Sky correspondents were also saying that the 5% cut would help businesses with their energy bills as they pay VAT on energy at 20% rate, ignoring the the fact that the vast majority of businesses will be reclaiming the VAT in full already. 

k_man

Sea_Shell said:

MattMattMattUK said:

Sea_Shell said:

I think we need an animated "banging your head against a brick wall" emoji 😉🙄

The OP is another example of Dunning-Kruger in action, these kind of people seem to becoming all to regular as posters and whilst I care little for the financial issues that they cause themselves I feel for those who may follow their "advice" out of desperation. 

I had to Google that 🤣

I had to too.

I think that for some people paying less in DD/SO/'bill' during periods of low usage is desirable.
More so if there is a distrust of the energy companies and/or lack of understanding of the SOLR process
Jam today

For others building credit for the coming winter shock (and 4% Santander), plus the DD discount of around 7% makes more financial sense.
More jam tomorrow.

Another one to Google:
Stanford marshmallow

pochase

Will the 5% reduction be also for energy? 5% reduction of VAT implies it, 5% minus 5%, but than there is only talk about 20% to 15% in the media.

I believe to cancel the 5% for energy bills was Sunaks idea to fight the cost explosion for energy cost.

[Deleted User]

pochase said:

Will the 5% reduction be also for energy? 5% reduction of VAT implies it, 5% minus 5%, but than there is only talk about 20% to 15% in the media.

I believe to cancel the 5% for energy bills was Sunaks idea to fight the cost explosion for energy cost.

Who knows what is going on in the Silly Ideas Department. As someone pointed out earlier, any VAT reduction might never be passed on to the customer. 

MattMattMattUK

k_man said:

Sea_Shell said:

MattMattMattUK said:

Sea_Shell said:

I think we need an animated "banging your head against a brick wall" emoji 😉🙄

The OP is another example of Dunning-Kruger in action, these kind of people seem to becoming all to regular as posters and whilst I care little for the financial issues that they cause themselves I feel for those who may follow their "advice" out of desperation. 

I had to Google that 🤣

I had to too.

I think that for some people paying less in DD/SO/'bill' during periods of low usage is desirable.
More so if there is a distrust of the energy companies and/or lack of understanding of the SOLR process
Jam today

For others building credit for the coming winter shock (and 4% Santander), plus the DD discount of around 7% makes more financial sense.
More jam tomorrow.

Another one to Google:
Stanford marshmallow

The Marshmallow test is amazing in how such a simple test can be so indicative of lifelong outcomes, it shows how basic humans are in many ways. 

MattMattMattUK

pochase said:

Will the 5% reduction be also for energy? 5% reduction of VAT implies it, 5% minus 5%, but than there is only talk about 20% to 15% in the media.

I believe to cancel the 5% for energy bills was Sunaks idea to fight the cost explosion for energy cost.

VAT on business energy is 20%, the standard rate, the way it is being talked about is that Truss would reduce the VAT rate on domestic energy to 0% and reduce standard VAT to 15%. The estimated cost was around £38 billion from reducing the standard rate and around £7 billion from reducing the rate on domestic energy. If Truss actually wanted to help people then using that £45 billion as targeted help, or just give every household another £1,500 off their energy bill, either of those two options would be far more beneficial and progressive, with VAT being a very progressive tax in application.

EssexHebridean

MattMattMattUK said:

Sea_Shell said:

I think we need an animated "banging your head against a brick wall" emoji 😉🙄

The OP is another example of Dunning-Kruger in action, these kind of people seem to becoming all to regular as posters and whilst I care little for the financial issues that they cause themselves I feel for those who may follow their "advice" out of desperation. 

This is exactly why I asked earlier in the thread for the forum team to alter the thread title or at least add a headline to the opening post to explain that the subject was misleading. It genuinely worries me that without question some will read the title and first post and just go away thinking they know how to save money on their energy bills… 🤦🏻‍♀️

* edited for typo. 

xeny

lsur02 said:
Is that just energy companies or all DD payments (council tax, water, etc)?  'Up to 7%' seems a bit optimistic as it will likely vary with the company. I think the title is fine - the bill is what you pay and wth a SO it is reduced.

It is definitely with energy companies, and certainly it does vary with the company - typically between 6 &7%. At this point the title is a lie - pay by SO and overall your energy will cost you more per unit is the truth. Or are you too embarrassed to acknowledge you've probably cost yourself money?