Martin Lewis has shared important advice to people on fixed energy deals.
The UK has been hit with a cost-of-living crisis as shock forecasts predicted the energy price cap could soar past £5,000 in April. Liz Truss has announced bills will be frozen at £2,500 to ease the burden on energy customers in the UK.
The finance guru has reacted to the announcement as he shared 15 need to know points after the support package was announced. Martin has been issuing advice to energy customers throughout the cost-of-living crisis.
READ MORE: Martin Lewis shares way to 'beat system' ahead of skyrocketing energy bills
A common question has been whether people should stick on a variable tariff based on the price cap or move to a fixed deal. Martin has confirmed anyone who has recently moved onto a more expensive fixed deal will be able to move contracts without any exit penalties.
He said: "I've been told this directly by the Secretary of State for Business as it's what I was arguing for. Those on fixes, can either stay on them, or can leave and switch to the new state subsidised tariffs with no exit penalties.'"
Ms Truss' plan will will see the Ofgem price cap replaced with a 'two-year energy price cap guarantee.' This will see a typical UK household pay no more than £2,500 per year on energy bills for two years from October 1.
A scheme for businesses, schools, hospitals, other public organisations and charities will "offer equivalent support" but will last for just six months. "Vulnerable" industries will receive longer-term support that will be set out later. A review in three months will decide which sectors should receive ongoing help.
The Government will wait until an emergency Budget this month to set out how much the vast intervention will cost, but estimates suggest it could be up to £150bn. It will be funded by extra public borrowing - piling the cost onto taxpayers eventually. The Government will also remove green tax levies, worth £150, from energy bills but say they will continue to fund projects to boost renewables. Ministers will press on with a £400 bills discount that has already been announced.
Together, the moves should mean the amount average households pay is close to the current £1,971 price cap, which rose last April. The Treasury estimates the measures will knock up to 5% off inflation forecasts.
Ms Truss told the House of Commons today that "this is the moment to be bold", adding that there are "no cost free options" to dealing with the global energy crisis.
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