Martin Lewis has made a harrowing suggestion that 'warm banks' may be needed this winter as energy costs continue to soar. The Money Saving Expert and financial journalist floated the troubling thought on Twitter earlier this week as millions of people continue to grapple with rising monthly energy bills.
It is expected that the energy price cap set by regulator Ofgem could rise to £3,200 per annum in October - a £1,300 increase which experts fear could plunge even more people into poverty. The UK government is rolling out the first instalment of a £650 cost of living payment to eight million people on Thursday, July 14 in a bid to tackle price rises across the board.
Speaking on Twitter, Mr Lewis suggested areas where people who can't afford their energy bills may need to be set up as we get into the colder months of the year. He said: "Can't believe I'm writing this, but I wonder if this winter we'll need 'warm banks' the equivalent of 'food banks' where people who can't afford heating are invited to spend their days at no cost with heating (eg libraries, public buildings)?"
Read more: The cost of living payments you're entitled to as bills soar
The tweet was met with a number of responses suggesting areas of the UK are already considering such measures. Samara Barnes, a councillor in Rossendale West & Hareholme, said: "This is already being discussed by councils!", while Bristol mayor Marvin Rees shared Mr Lewis' tweet saying the council were already putting plans in place:
Speaking to MPs on the Public Accounts Committee on Monday, Ofgem CEO Jonathan Brearley refused to say if the cap could top £3,200, as suggested by experts. But he said energy prices appeared higher than when Ofgem made its estimate.
He said: "It’s clear given the pricing dynamics we’re seeing, given the ongoing impact of the Russian invasion of Ukraine, that there is positive pricing pressure there - as in prices are looking higher than they did when we made that estimate - but we don’t give ongoing sort of commentary until we make our formal announcement.”
When Sarah Olney, Lib Dem MP for Richmond Park, asked: "Imagine if it is in the region of £3,200, and that may or not be, but it’s going to be higher..”, Mr Brearley answered “yes” before she continued the question “...we know it’s going to be higher than now...”
The energy price cap already ballooned by 54% in April, hitting £1,971 as gas prices soared from last summer. To get the latest money news straight to your inbox, subscribe to our dedicated newsletter here.
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