Martin Lewis warns energy price hike will hit one…

Martin Lewis warns energy price hike will hit one third of State Pensions

Financial champion Martin Lewis has warned of a cost of living 'emergency' as energy prices are set to rise by 64 per cent, costing a third of State Pensions.

This comes after data was published by energy analysts suggesting that Ofgem’s price cap is set to rise by 64 per cent from October 1, pushing the annual cost for a typical user on a standard tariff to a staggering £3,245. Cornwall Insight also said the price cap could go up by a further £360 in January to £3,364.

As the Daily Record reports, the MoneySavingExpert.com founder told BBC Radio 4 that it is going to be a 'very bleak winter' as the 'cataclysmic' energy crisis will see thousands fall into poverty. Already, households are struggling with the current price cap that has pushed the average yearly bill to £1,971.

Martin went on to warn that people receiving State Pension will be forced to use one third of their annual payment to pay for energy bills as the current £15 billion package of support does not cover the new increased predictions.

Martin explained: “The rise in prediction from the May period alone when the Chancellor at the time, Rishi Sunak, set the help package, is £450 which is bigger than every household was going to be given then.

“And just to give you one more statistic that really nails this, somebody on a typical State Pension gets around £9,500 a year, £3,245 is a third of that.

“This isn’t the mortgage, this isn’t the rent, this is the energy bill alone is likely to be bigger than a third of the State Pension, which means the help packages that were in place are no longer fit for purpose and we need a government, active, educated with ministers who have had time to get hold of their brief as soon as possible.”

Martin added that the only way we will see lower bills than the predicted £3,245, and prevent people from having to choose between “heating and eating this winter”, is by governmental action.

He said: “This is a genuine, urgent emergency. Millions of households will be forced into poverty unless we act more, it will be devastating for people.”

Martin also took to social media to share what the new predictions will mean for households each month.

Posting on Twitter, he said: “Rough Ready Reckoner based on predicted future price cap...