Martin Lewis has issued urgent advice on those switching energy tariffs — on the day it was announced the energy price cap will rise massively. The cap is set to rise by a huge 42 percent in October.
That means households could pay in the region of £2,800, energy regulator Ofgem says. “I will be writing to the chancellor to give him our latest estimates of the price cap uplift,” Jonathan Brearley, CEO of Ofgem said earlier today. “This is uncertain - we are only part-way through the price cap window - but we are expecting a price cap in October in the region of £2,800."
Martin Lewis was appearing on another live special focusing on the cost of living crisis this evening (May 24). He also looked at ways people can save money abroad.
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At the start of the show, Martin began with a grave statement. “We have Ofgem estimating a 42 percent price hike,” he said. That news was met with booing from the audience. Martin reacted quickly, saying: “It feels like a pantomime. I wish it was.
“I am worried it is curtailing lives for some people. I am going to do what I can to help you to thrive or survive.” A short while later, a question from Andrew, in Teesside, asked Martin if he should switch from a variable tariff to a fixed rate. And Martin gave an insightful answer.
He said: “The cap will go up 42 percent. Even then the new price cap is going to be [in place] for three months but we are expecting the next price cap to be the same.
“Then it might go down. If you can find a fixed rate 30 percent below it, it might work. We are seeing existing customer fixes. I believe there an Eon two-year fix and a British Gas fix that are within the 30 percent.
“If you find one and it is less than 30 percent than you pay now, you might want to look at it.”
