Martin Lewis has urged the Government to take action after another 'tragic' energy bills forecast was outlined on Tuesday (August 9). Consultancy firm Cornwall Insight has said it expects the energy price cap to reach £4,266 a year between January and March in 2023.
The company originally predicted an energy price cap rise of £3,615 only a week ago but has already revised its predictions based on rising wholesale prices and changing the method used by the energy regulator Ofgem. Cornwall Insight has said it now believes it was behind on its initial forecast but has said it expects bills to ease slightly by next summer.
It has urged the Government to review the support packages being offered to consumers. Martin Lewis has joined the firm and has accused the "zombie" government of needing to wake up and plan the next steps.
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In a Twitter thread, the money saving expert wrote: "Tragic news. The latest @CornwallInsight prediction, based on Ofgem's new methodology, is an 81% price cap rise in Oct (taking typical bill to £3,582/yr) and a further 19% in Jan (so £4,266/yr).
"Action & planning is needed now. The zombie govt needs wake up sooner than 5 Sept..."
He continued: "These amounts are unaffordable for millions. The Jan figure equates to 45% of the full new state pension, and a higher proportion of the old one. The rise alone on the Jan prediction, from when the help was first announced in May, is roughly £1,400/yr...
"That rise alone swallows up not just £400 help for all homes, but even the £1,200 for the poorest. This will leave many destitute. Tax cuts won't help poorest incl [sic] many elderly & disabled who've higher usage."
Lewis has urged Conservative Party leader candidates Liz Truss and Rishi Sunak to address in the issue in the leadership debates. He called the energy price cap situation "desperate" and said "people's livliehoods, mental wellbeing and in some cases very lives depend on this".
In May, the former chancellor Rishi Sunak announced a £15 billion support package for consumers that included £400 for every household. Cornwall Insight has said this is not enough to help struggling households in the wake of further rises in October and January next year.
"If the £400 was not enough to make a dent in the impact of our previous forecast, it most certainly is not enough now," the firm said in a blog post. "The government must make introducing more support over the first two quarters of 2023 a number one priority.
"In the longer-term, a social tariff or other support mechanisms to target support at the most vulnerable in society are options that we at Cornwall Insight have proposed previously. Right now, the current price cap is not working for consumers, suppliers, or the economy."
Martin has been taking a break from social media and work recently but "felt this news was too big and too damaging" not to use his platform to "try and put pressure on for sensible urgent action from political powers".
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