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Liverpool Echo
Liverpool Echo
Business
Lottie Gibbons

Martin Lewis £500 warning as energy bills set to rise in April

Martin Lewis has issued a warning ahead of a planned rise in energy bills.

The average bill is expected to rise from £2,500 to £3,000 but Mr Lewis, who founded the website MoneySavingExpert.com, has said it is no longer necessary because wholesale prices have "come down very substantially".

The consumer champion has now written to the Chancellor to call for April's planned rise in the energy price guarantee to be scrapped.

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He said: "It just seems to me there is no need to do this. If we postpone this rise it is likely from July, wholesale prices will have gotten to the price cap and if the energy price cap which is set by the regulator and is dictated by wholesale prices, is lower than the energy price guarantee we pay the lower amount, and that is likely to happen from July.

"To put this national act of harm of increasing the price guarantee for just three months, to throw another 1.7m people into fuel poverty taking it to 8.4 million, it seems unnecessary."

He said any cancellation would have to happen before the March Budget because by then people will have had letters telling them their bills are going up.

The letter, which was sent on Thursday morning, is supported by charities including Citizens Advice, National Energy Action and StepChange.

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