Martin Lewis has shared the latest prediction from Cornwall Insight on how much energy bills for millions of households on the standard tariff will be from next April, once the UK Government’s Energy Price Guarantee has been withdrawn. The scheme was initially launched to protect people from rocketing fuel bills until 2024, but was scaled back to six months by Chancellor Jeremy Hunt.
The consumer champion took to social media on Monday to advise people that energy bills look set to hit an eye-watering £3,700 per year, an increase of 47% on the current £2,500 price cap. However, as unfathomable as that figure is, the award-winning financial journalist highlighted how the latest forecast from the energy analysts is down from their initial prediction last month of 72% - equivalent to more than £4,000.
Although it’s early days yet and the wholesale gas market is still incredibly volatile, Cornwall Insight has been fairly accurate with previous estimations.
Sharing the latest update with his 1.9 million Twitter followers, Martin wrote: “Bad and good news.
“It's early days but @CornwallInsight's latest prediction for the April price cap (which returns then unless govt changes rules) is a 48% rise; taking a (meaningless but illustrative) typical bill to £3,700/yr from £2,500
“Yet it’s less than the 72% predicted before.”
The Martin Lewis Money Show Live will be an energy special on Tuesday, aimed at helping viewers save on energy bills and reduce consumption. The programme airs at 8pm on ITV/STV.
Last month, Jeremy Hunt told parliament that he and then Prime Minister Liz Truss had “reluctantly” agreed it would not be responsible to keep the Energy Price Guarantee beyond April 2023.
During a review of the mini-Budget which had been delivered by the previous chancellor, Kwasi Kwarteng, Mr Hunt told the Commons: “The third step I’m taking today, is to review the Energy Price Guarantee. It is the biggest single expense in the growth plan and one of the most generous schemes in the world, it’s a landmark policy for which I pay tribute to my predecessor, my right honourable friend from Spelthorne and it will support millions of people through a difficult winter reducing inflation by up to 5%."
He continued: “So I confirm today that the support we are providing between now and April next year will not change.
“But beyond next April, the Prime Minister and I have reluctantly agreed it would not be responsible to continue exposing the public finances to unlimited volatility in international gas prices.
“So I’m announcing today a Treasury-led review into how we support energy bills beyond April next year. The review’s objective is to design a new approach that will cost the taxpayer significantly less than planned whilst ensuring enough support for those in need.”
The Chancellor is due to deliver his Autumn Statement on November 17.
To keep up to date with the latest energy news, join our Money Saving Scotland Facebook page here, or subscribe to our newsletter which goes out four times each week - sign up here.
READ NEXT
- New Winter Fuel Payment video aims to help more people understand who qualifies for up to £600
Full list of cost of living and heating payments due before Christmas
£324 cost of living payment date for people claiming Tax Credits confirmed for this month
Older people urged to claim Pension Credit before next month to qualify for extra £324 payment
DWP confirms 'no plans' to introduce pro rata Winter Fuel Payment for older people
