Secretary of State for Energy Security and Net Zero, Grant Shapps MP, appeared on The Martin Lewis Money Show Live this week to answer questions from the consumer champion and viewers in an energy special of the award-winning TV programme.
Within seven minutes of the show starting, the founder of MoneySavingExpert.com asked Mr Shapps about the planned increase of the £2,500 Energy Price Guarantee (EPG), to £3,000 from April 1. Martin Lewis wrote to Chancellor Jeremy Hunt three weeks ago asking him not to raise the EPG as it would mean energy bills for millions of households would go up by 20 per cent, around £500 for those on typical, average usage.
The campaign has been backed by more than 110 organisations and charities and, according to unconfirmed reports by the BBC and The Times, it will not be increased. However, when Martin asked Mr Shapps directly if it was staying at £2,500, he directed his response towards the Budget next week saying that the Chancellor would set out his “whole financial picture” then.
Martin explain the contents of his letter, which you can read in full here, and listed several of the major charities and organisations backing the call to postpone the hike to £3,000 until the summer.
Martin asked Mr Shapps: “Secretary of State, are you still going to put prices up by 20 per cent in April?”
Mr Shapps thanks Martin for everything he has done to explain the current energy situation and for making his case for postponing the increase.
He said: “The Chancellor, a week tomorrow, is doing his Budget and in his Budget he’ll be able to set out his whole financial picture for the year ahead and I know because I’ve been speaking to him about your letter.”
He also explained how the support to reduce energy bills for households comes from taxpayers money and has cost “billions of pounds”. He also said it has been paid for through taxing oil and gas companies profits.
Martin pressed the issue and asked again: “Are you still putting it up?”
Mr Shapps replied: “I’m afraid the ultimate answer is, tomorrow week, Wednesday, you’ll get the Budget and you’ll get the answer.”
A smiling Martin then said: “Okay, let me give you the answer.” Which drew a chuckle from the studio audience.
He told viewers that a deadline has passed for energy companies to pass on increased prices to suppliers and they have not. He added that he also has “other sources” that tell him “prices are not going up”.
“I would say the level of certainty now is 99 per cent that we will stay roughly where we are and then prices will drop from July.
“That 20 per cent won’t happen and hopefully that’s what will be confirmed next week,” he said.
Chancellor Jeremy Hunt will deliver his Spring Budget on March 15.
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