Martin Lewis answered people's energy crisis questions today.
Appearing on a special episode of Good Morning Britain, the Money Saving Expert founder answered calls from a specially made phone line on the show. He said the purpose of it was to help those who are having to choose between 'heating and eating'.
Viewers could call in for free on an 0800 number as the money mogul was joined by ITV host Susanna Reid. Together they shed light on the dire situation of increasing bills.
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Martin, nicknamed the 'people's chancellor' said he was: "Gravely concerned about the situation that people will experience over the next 12 months." As from next week, in April, energy bills will rise by as much as 54%. With that in mind, Martin answered one of the most common energy questions.
Is it best to stay on a variable rate or fixed rate energy tariff?
Martin said: "This is the big question, and people really need to understand what's happening. So, I've got a graph." He explained that the cost of wholesale gas is now four times the amount of 'traditional ' costs.
He said the October price cap is also set to see prices increase further. For an average household, from September, annual costs will be expected to be around £2,490.
He had a look at the cheapest fixed rates currently available and said based on the same average household, the cheapest fixed rate currently would be around £2,880 per year. Meaning this would be around £400 more expensive than a standard tariff.
Martin said: "So it isn't worth getting a fix today. It's just not worth it. Stick on the price cap.
"What you want to watch for though is does your firm ever offer you a much cheaper fixed deal? If they were to offer you a fixed deal no more than 20% higher than the April price cap then I would probably consider fixing for price certainty, although I can't promise it will work."
As he realised his answer might not resonate with all viewers, he simplified it. He said: "An answer for those who don't get it - if you're on the price cap, do nothing. As a general figure at the moment, there aren't any good ones."
Susanna added: "Simple information is really helpful."
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