Money Saving Expert founder Martin Lewis has warned households to ration their energy usage after Jeremy Hunt announced the price cap freeze will end after six months.
The personal finance guru said middle earners could be among those unable to pay their bills as average energy costs could hit £5,000.
Jeremy Hunt said the government would “review” the two-year cap on the unit price of energy to keep annual household gas and electricity bills at no more than £2,500.
In a shock move aimed at reassuring markets the government can balance the books, the new chancellor said he had find a “new approach” to energy bills that will “cost the taxpayer significantly less”.
Gas and electricity prices are expected to stay high for a “sustained period” while analytics companies expect average household energy bills to rise above £5,000 after the price cap freeze.
This figure is calculated based on homes that use 12,000kwh of gas and 2,900kwh of electricity.
It is expected to be higher for larger houses as well as people who use specialist equipment, for example those who need oxygen for medical purposes.
Mr Hunt said the two-year energy price guarantee had been “the biggest single expense in the growth plan”, suggesting the Treasury wanted to end universal support for all Britons after six months.
The chancellor said that beyond April “the prime minister and I have agreed it would not be responsible to continue exposing public finances to unlimited volatility in international gas prices”.
Mr Lewis told Good Morning Britain: “They are going to need to stretch the help net up to middle earners. It won’t work for them politically, and it won’t work for people’s pockets, if they are only helping those on benefits.
“There is very little anybody can do personally right now apart from cutting their own usage. We should all be trying to do that if we can and if it doesn’t impact your life, it’s a personal question for you, I’m not dictating.
“But looking both from the environment and for energy security over the winter and for your own bills, it’s useful to do going forward.”
Mr Hunt says there will be targeted support for people during the energy crisis, but details of exactly who will get help have not yet been released.
