Quick Answer: What Is Budget Direct Debit?

Budget Direct Debit is an easy way to pay for your energy – you set up a Regular Payment Amount to come straight out of your bank account every month.

It’s a good way to budget – you pay the same amount every month, spreading the higher cost of winter fuel across the whole year.

Is it cheaper to pay British Gas by direct debit?

Direct debit is usually cheaper

While there are problems, there’s one important fact in favour of setting up a monthly direct debit. It’s usually around 7% cheaper than any other way of paying. If you use heating oil to heat your home, instead of gas or electricity, it’s different.19 Feb 2019

How does monthly direct debit work?

The monthly Direct Debit. A monthly Direct Debit is a set amount that you pay each month to cover your energy usage and helps you spread the cost of your energy equally across the year. This means that your energy account will be in credit over the summer months, to help pay for those higher bills in the winter.

Does direct debit cost anything?

No. Banks don’t charge you for making or setting up Direct Debits. If you don’t have enough money in your account to cover a Direct Debit your bank can refuse to make the payment and might charge you – typically £5 to £25.

Why have a direct debit?

Whether using Direct Debit to pay your household bills or business costs the benefits are the same and worth the few minutes it takes to set up a Direct Debit. Paying your regular bills or business costs by Direct Debit allows you to spread costs over a period that you agree with the organisation you are paying.