Why should you budget?

There are many reasons why you should budget:

• It gives you a greater understanding of your own money situation.
• It helps you to plan ahead and see exactly where you money is going and who it is going to
• It shows you where you can make cutbacks/ increase spending.
• It is an extremely useful life skill, especially if you are having financial difficulties.
• If you are in debt it will help you to come up with a realistic plan for paying back creditors and take back control in your life.
• With budgeting you can learn to distinguish  between what you actually need to spend on e.g. food, rent etc and what you like to spend money on e.g. cinema, going to the pub

Money management

It is important that you are aware of both your inflows and outflows of cash. This is why we suggest using our budget planner. It is an effective way of managing your money.

If your end figure is negative then it is time to start making some changes in your life, the budget planner(pdf format) will allow you to see what you actually need and where you are overspending.

Another important aspect of money management is to always pay your bills on time. Never ignore a bill; if you do it could have worse consequences, such as charges from your bank or damage to your credit rating. If you are having difficulty paying a bill then contact the supplier, as they may be able to arrange a payment scheme to manage your debt.

Know what’s available to you

• Maximise your income, you may be entitled to benefits that you are not getting, getting taxed too much on your income or even being overcharged for your bills.
• Make sure that you know what is available to you. If you are over 60, chronically ill or disabled, npower may be able to check what benefits are available to you.
• For tax issues ring your local tax office.
• If you are over 60 you may be entitled to cold weather payments.
• You may also be eligible for grants or if you have solar panels you could be entitled to a feed in tariff (which is where you get money back for electricity that you generate but don’t use).
• You could also be eligible for insulation grants from your gas or electricity company.

Which type of payment method suits you?

There are several types of payment method that may be available to you from npower,

Monthly Direct debit - Take npower gas and electricity and pay by monthly Direct Debit throughout the year and receive a £100 annual discount* on your npower fuel bills. Take one fuel, paying by monthly Direct Debit throughout the year, and you’ll receive an annual £40 discount for electricity or £50 for gas accounts*. All you have to do is give us your bank account details and we’ll do the rest.

Quarterly Direct Debit – Take npower gas and electricity and pay by quarterly Direct Debit throughout the year and receive a £100 annual discount* on your npower fuel bills. Take one fuel, paying by quarterly Direct Debit throughout the year, and you’ll receive an annual £40 discount for electricity or £50 discount for gas accounts.

Prepayment meter – Prepayment meters enable you to pay for your fuel as you use it, instead of paying monthly or quarterly. Paying for your fuel this way allows you to manage your finances and only buy what you need.  A prepayment meter can be installed to help you to clear an existing debt as it can be collected by your meter every week.

Pay online – it is a quick easy and manageable way to pay your bills. You can make big savings in comparison to your average standard bill. It comes with online account management, you can send meter readings, view and pay bills online plus much more.

Receipt of bill – you can pay by post via check or through your bank upon receipt of your bill. This is generally the most expensive method of paying for electricity and gas.

You should also be aware of what tariffs you are on. As well as the payment method, the tariff you are on may also reduce your bill. For further information on how to reduce your bill go to  

You should also be aware of what tariffs you are on. As well as the payment method , the tariff you are on may also reduce your bill. Go to http://www.npower.com/web/At_home/electricity_and_gas/Products/index.htm to find out more.

*Your annual discount: If you pay by Direct Debit continuously for 12 months (either by making monthly payments or by settling your quarterly bill in full by variable Direct Debit) we’ll give you a discount off your bill (£100 if you buy both electricity and gas, £50 if you buy just gas or £40 if you buy just electricity). Alternatively, if you pay for both fuels for 12 months by cash or cheque, either when you receive your quarterly bill or by regular monthly or fortnightly payments, we’ll give you a £10 Dual Fuel discount. Your discount will be credited to your account on or before the last day of the 12th month after becoming eligible and then on or before the same last day of each year you continue to pay this way. Dual fuel customers must pay for both fuels in one combined payment and accept a combined dual fuel bill or statement to receive a Dual Fuel discount. Certain tariffs are excluded. If you don’t pay by Direct Debit and you receive any discount that is equivalent to our Direct Debit discount, this equivalent discount will be replaced by the Direct Debit discount if you switch to Direct Debit payment. Subject to change.