Martin Lewis has explained how much households can expect to pay for their energy bills when the Government's price cap comes to an end in less than five months' time.
The MoneySavingExpert founder referenced a new forecast from energy market analysts at Cornwall Insight, who said that energy bills are set to be lower than previously expected in the spring due to wholesale gas prices falling - but still "significantly above" the Energy Price Guarantee that is currently in place. They added that the prices will "likely prompt calls for greater Government intervention" next year.
Describing the prediction from Cornwall Insight as "bad and good news", Martin explained on Twitter that energy bills are forecast to increase by 48% in April. This will take the average household's energy bill from £2,500 a year up to £3,700, in a blow for many who are already struggling to make ends meet amid the rising cost of living.
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However, Martin pointed out the "good news" that this rise is less than the 72% bills were predicted to rise by earlier this year. Households have been concerned over what their energy bills will look like since Jeremy Hunt announced his Budget U-turn last month.
The Chancellor scrapped Kwasi Kwarteng's mini-Budget Energy Price Guarantee pledge to cap the average annual energy bill at £2,500 for the next two years, instead saying that this cap will only last for six months until April 2023. After this period, a review will take place to decide who will eligible for continued support and how much they will receive.
Following the dramatic U-turn, Martin Lewis initially predicted that energy bills would rise to an eye-watering £4,350 per year from April, before going down to £3,700 a year in July. "If these [figures] are in the right ballpark, the promised ‘targeted help’ will need to be targeted up into the middle incomes for people to get through this," he tweeted at the time.
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