Martin Lewis has explained which households will be most affected by changes to energy bills in the New Year, with some set to see costs go down as others have increases in store.
Ofgem's energy price cap, which changes every three months, is set to rise again in January - but the Government's Energy Price Guarantee that is currently in place ensures that the average energy bill is kept down to £2,500 a year. However, the changes to the price cap mean that most people will see their bills change slightly in the New Year, according to the MoneySavingExpert website.
Hosting Wednesday's edition of Good Morning Britain with Susanna Reid, Martin broke down what people can expect from their energy bills in January depending on their circumstances. "In January, we're going to see a change to the prices that people pay for energy under the Energy Price Guarantee," he explained.
Martin clarified that the changes coming in the New Year are not "substantial", as the biggest changes will come in April 2023 when, according to the financial expert, households will start paying 20% more for their energy bills on average as the Energy Price Guarantee comes to an end. However, he added that the January changes will still have a noticeable effect on certain households.
If you pay by monthly direct debit
Those who pay their energy bills via monthly direct debit are expected to be least affected by price rises in January, with a zero per cent increase expected for a typical bill overall across the whole of the UK. However, these figures may vary depending on where you live, as explained on the MoneySavingExpert website.
For households in the North of England, there is actually expected to be a 0.5% drop in the cost of the average energy bill from January if you pay by monthly direct debit, which could see roughly a fiver knocked off a typical monthly bill in the region from the New Year. This is different for each area - for example, households in the Midlands paying by direct debit are expected to see a 0.5% increase from January on average instead. You can see the full list on the MSE website.
If you pay by prepayment meter
Those who don't pay their energy bills by monthly direct debit will be most affected by price rises from January, Martin explained on GMB. On average across the UK, those who pay by prepayment meter will see a 0.8% increase on bills, though in the North of England the figure is expected to be lower than this at 0.4% based on typical use.
If you pay on receipt of bill
If you have opted to pay on receipt of your bill, "you're going to pay a lot more" from January, Martin warned. This type of bill is set for the highest increase in the New Year, expected to rise 1.6% across the UK and 1% for households in the North of England based on average use.
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