Martin Lewis has beckoned people to look closely at the fixed rates on offer as the cost of living crisis spirals. The energy price cap will rise to £1,971 a year for the average household this Friday (April 1).
Ahead of the increase, the Money Saving Expert joined Susanna Reid on Good Morning Britain on Wednesday (30 March) for a cost of living special. There, he took calls and questions from viewers at home, who explained their concerns about the upcoming energy price hike.
One viewer questioned whether they should stay on the energy price cap or look for a fixed rate. "The cheapest fix right now on the market is £2,880, which is actually more than the prediction of the October price cap (currently at £2490+) so it isn't worth getting a fix today. It's just not worth it," Martin said.
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"Stick on the price cap. What you do need to watch out for is though, does your firm - because there are no open market ones here, comparison sites are gone for the minute - ever offer you a much cheaper fix deal."
Susanna admitted it sounds very complicated for those who are not finance experts like himself, so Martin simply explained what people could do in order to secure what he believes would be the best deal. "If it was to offer you a fix around 20 per cent higher than the April price cap (£1971 a year on typical use) then I would probably consider fixing for more price certainty though I can't promise it will work," he added.
However, he did warn things could change, as he added: "So that's the line we're on right now, the cheapest fixes are far more than we think it will be in October, but this could all change because it's changing so quickly." Martin was on Good Morning Britain last week, where he urged the government to step in to help, reports the Mirror.
"And with energy bills looking to rise £1,300 in a year, which is absolutely what is nailing this more than anything else, people will need help or they will have to choose between starving or freezing," he said.
"When I say I'm virtually out of tools - in past times, I would say you're paying too much, you're on the price cap, you need to switch and here's the saving. There are no fixes available on the open market worth going for."
