Martin Lewis has warned that "energy prices will almost certainly rise 20% in April". The average household energy bill is capped at £2,500-per-year by the current energy price guarantee, but this is expected to end in April when the cap will rise to £3,000.
In response to a tweet asking when energy prices could drop, the money saving expert concerningly responded: "Energy prices will almost certainly rise 20% in April as announced. Then in July the current prediction is energy price cap will then be lower than the energy price guarantee so prices will drop c6% and stay that way til year end (still a higher rate than the current one tho)".
The reassuring aspect of his warning is that the energy price cap will be lower in July than the energy price guarantee. This means prices will drop, and extend through to the colder winter months at the end of the year.
Additionally, following Prime Minister Rishi Sunak's pledge to halve inflation to ease the cost of living crisis yesterday (January 4), Lewis explained the potential economic issues that such a move would impose, tweeting: "A quick terminology explanation. Inflation is a measure of how quickly prices rise. If you halve inflation prices will still rise, just less quickly. So halving inflation would still mean things are more expensive than they are now."
He has recently said that the current financial climate has left him "virtually out of tools" to help people manage their money, adding that political intervention is necessary to ease pressure on people.
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