MoneySavingExpert boss Martin Lewis says energy bills could hit £3,700 a year for the average UK home - and it's both "bad and good news".
Energy prices rose to an average of £2,500 a year from October 1, when the Government's Energy Price Guarantee came into force.
The price freeze means the typical household will pay less for energy than the £3,549 a year that was predicted from October 1.
But it still means homes are facing higher energy prices than they were, with the average household paying £529 a year extra from the start of October 2022.
The Conservatives had pledged to freeze energy bills at £2,500 for average use for two years, but this is now in question past April 2022.
If prices do rise in April, experts have predicted that energy bills in April 2023 will be £3,700 on average.
Analysts at Cornwall Insight said this would be the likely energy price cap, meaning the average home paying for energy by direct debit on a variable tariff will pay around this figure per year.
In response, Martin said the prediction was "bad and good news".
He added: "It's early days but Cornwall Insight's latest prediction for the April price cap (which returns then unless the Government changes rules) is a 48% rise; taking a (meaningless but illustrative) typical bill to £3,700/yr from £2,500.
"Yet its less than the 72% predicted before."
What to do if you can’t pay your energy bill
The first thing you should do is contact your energy supplier and discuss with then different ways you can pay your bills.
You can negotiate a payment plan that can work for both them and you.
If you have debts with them, establishing a payment plan can be the best solution to pay them off without your supplier disconnecting you.
Your supplier has to take into account two things:
- How much you can actually afford
- How much energy you’ll use in future
If you cannot pay off your debts either, then you might be able to do so through your benefits.
The Fuel Direct Scheme has been set up by the Government to take some money away from your benefits to directly pay off your energy bills.
To be eligible, you must be on one of the following benefits:
- Income-Based Jobseeker’s Allowance
- Income Support
- Income-related Employment and Support Allowance
- Pension Credit
- Universal Credit
To apply, there are two options depending on what benefits you are receiving.
If you get Pension Credit, head over to the Pension Service on the Government website and fill out your information.
If you are on Universal Credit, contact the Jobcentre and tell them you want to set up Fuel Direct.
There is also the £400 energy bills discount to support households.
Households will start receiving £400 off their energy bills from October, with the discount made across six instalments.
This is applied automatically - £66 in October and November; £67 in December, January, February and March.
