Martin Lewis has warned households amid the ongoing cost of living crisis that the Government’s new plan to help with energy bills could still see them paying upwards of the £2,500 ‘freeze’.
The warning comes after Liz Truss announced that the Ofgem price cap is being replaced by an Energy Price Guarantee. While the price cap was set to rise to £3,549 in October, the new Guarantee confirmed by the Prime Minister will cap the average energy bill at £2,500 a year for the next two years.
But the MoneySavingExpert founder explained that this figure does not mean that households will see their bills stay below £2,500. Speaking during his ITV Money Show Live on Thursday, Martin explained that the Guarantee puts a cap on the unit rates you pay for gas and electricity as well as the standing charge, The Mirror reports .
