Money guru Martin Lewis was close to tears as he admitted he doesn’t have the answers to help the most vulnerable households through the energy crisis. The MoneySavingExpert pleaded with the Government to announce further cost of living help during a BBC Breakfast interview.
Ofgem has confirmed its price cap for October will skyrocket to £3,549 - a rise of 80% from its current level of £1,971. It means that for those paying by prepayment meter - typically those struggling to pay for their energy - there is a bigger jump from £2,017 to £3,608, The Mirror reports.
When asked by BBC presenter Charlie Stayt what households can do now, an emotional Martin replied: “You’re asking me a question. I’ve been a money-saving expert for 20 years - and I don’t have an answer.
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“I don’t have an answer because there isn’t one. That is why we are extremely in need of some Government intervention.
“The mental health catastrophe this is causing by not having an answer or firm plans in place on the day this price cap is announced - is also a secondary symptom and catastrophe of this.”
Some 24 million households are covered by the energy price cap, including four million on prepayment meters. The huge rise in the price cap will add more pressure on to families already struggling with the cost of living crisis - with campaigners fearing many will be pushed below the poverty line.
Martin said: “If you are really struggling, it is very difficult for you to be disconnected these days if you can’t pay. They might move you, if you’re not already on to a prepayment metre - and there is some emergency help on prepayment meters.
“Some people are going to have massive help problems because they don’t have heating in their home. There are people voluntarily disconnecting.
“I said - I think six months ago, maybe a little less - that I was out of tools to help the most vulnerable with energy, and Government help is needed.”
The price cap represents a customer with typical usage on a default tariff, paying by direct debit. It sets a limit on the rates a supplier can charge for each unit of gas and electricity you use, as well as the standing charge.
Your total bill is still determined by how much energy you’re using- as the price cap covers the unit rates and standing charge. So use more energy and you’ll pay more.
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