Martin Lewis Warns Energy Cap To Rise Another £1,000
Topics: Martin Lewis, Money, News
Ali Condon
Featured Image Credit: ITV/Shutterstock
Topics: Martin Lewis, Money, News
Martin Lewis has warned that Brits could face a rise of £1,000 in their energy bills this winter as the cost of living crisis continues.
Alerting his followers to the news, the Money Saving Expert took to social media to share the analysis from Cornwall Insights.
The energy market consultancy firm has predicted that the Ofgem (Office of Gas and Electricity Markets) energy price cap will rise from £1,971 to £2,980 this coming October.
Advert
The energy price cap, limits the rates a supplier can charge for each unit of gas and electricity used, is then predicted to round up to £3,000 in January.
Taking to Twitter, Martin warned: "Just got latest @CornwallInsight price cap predictions. Wholesale prices spiked heavily last week, so they're up a lot.
"Today's price cap: At typical use = £1,971/yr. Prediction Oct - Dec: UP 51% (£2,980/yr typical use). Prediction Jan - Mar: UP 1% (£3,000/yr typical use)."
He followed up with another tweet:
Currently, the energy price cap is up for review twice per year, but Ofgem is pushing for a quarterly renewal, which would mean a price change in January.
Martin had originally discussed the spike in energy prices last week, urging Brits to consider a fixed energy deal that is no more than 35% higher than the current price cap.
However, since price caps are set to rise, Martin has said that he will be issuing new advice on when people should fix into an energy deal.
Martin Lewis has also been advising followers on the £400 energy bill reduction that households are set to receive this October.
Among a series of new measures announced to help struggling households, the Rishi Sunak revealed every household in the UK would receive £400 off their energy bills in October.
For those concerned that they might have to pay back this £400 grant, Lewis was on-hand to share what people could expect.
Explaining it all on social media, Martin tweeted: "Many still confused about the £200 loan-not-loan. It has gone. Now in October all energy bills will be reduced by a flat £400. This is not repayable. This is a grant. Every household that gets an energy bill will get it".
Breaking down the key announcements, Martin explained that low income households could receive £950 while those who also have disabilities could expect to receive £1,100.
Pensioners are also being given £700 to help with the crisis while those in council bands A to D will receive a payment of £150.