Good Morning Britain’s Martin Lewis has expressed worry that the government will “harm” the nation’s “mental health” ahead of a new energy price announcement.
The Money Saving Expert founder appeared on Monday’s edition of the morning show (27 February) before Ofgem announced the new energy price cap.
Lewis, 50, urged the government to step in to avoid an “act of national mental health harm” as Ofgem prepared to announce that the price cap would be reduced expected to be reduced by £1,000 to £3,300 for someone on typical use.
He blasted the proposed plans and advised the government to reverse them.
“Please do not do the price increase in April. It will only likely be in effect for three months,” he said.
“It seems to be an act of national mental health harm to send millions a letter saying your energy bills are going to up by 20 per cent again when they’ve already more than doubled.”
Martin explained that the government is expected to spend less money subsidising energy bills and urged them to spend more now to help people cope with rising bills.
But the energy regulator has announced households will pay up to £500 more on energy bills, despite its price cap falling by £1000 from April.
It is estimated that households are still expected to fork out hundreds more because the government increased its own price cap on bills.
The Energy Price Cap (EPC) is the maximum amount a utility company can charge an average customer in the UK per year for the amount of electricity and gas they use in kilowatt hours (kWh). It is designed to prevent businesses from simply passing on cost increases to the consumer.
Set by the regulator Ofgem and first introduced in January 2019, the cap only applies to customers who are on a standard variable tariff, typically a provider’s default and most expensive option.
Lewis said in the show: “Because the cap is still higher than the energy price guarantee, the cap is irrelevant.”
TUC general secretary Paul Nowak agreed with Lewis, saying on Monday: “Energy bills are out of control. The government must cancel April’s hike. With the cost of wholesale gas plummeting, ministers have no excuse for not stepping in.”
