Money Saving Expert Martin Lewis has called the energy cap "irrelevant" as UK households face increased energy bills from April 1 despite the energy cap being lowered. The money guru explained his reasoning on ITV's Good Morning Britain as regulator Ofgem announced today (February 27) that the figure suppliers will be able to charge will drop from £4,279 per year to £3,280, following a recent drop in wholesale energy prices.
Despite the cap's reduction however, households are still expected to see their bills increase by an average of £500. In part, this is due to Government support, the Energy Bills Support Scheme provided over winter months, coming to an end.
The scheme has seen £400 taken off bills in England, Wales and Scotland, while in Northern Ireland the discount is £600 to support people during the cost of living crisis. Speaking on Good Morning Britain, Mr Lewis said: "On 1 April the government, because it sets the energy price guarantee - not the regulator, not firms - is planning to increase from £2,500 a year for someone on typical use by 20%.
