Martin Lewis has called for urgent intervention as energy bills are expected to soar to nearly £4,000 by January.
Responding to the news that the energy price cap is set to jump over the originally predicted 64 per cent in October, Martin Lewis warned it will have 'catastrophic' impact and intervention is needed.
As shared by ITV, Speaking in a video from MoneySavingExpert, the financial guru said: "This is going to be absolutely devastating the latest prediction for the price cap is that it will go up 77 per cent on October 1 taking someone from the current 1, 971 pounds a year which was already up over 50 per cent to £3,500 a year and then in January 5, it will go up again.
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"Now that £1,500 a year spike is simply unaffordable for millions of homes and is likely to put around 10 million people or more into fuel poverty. I'm more into fuel poverty it is frankly catastrophic and intervention is needed and needed now."
Earlier on Thursday (July 28) morning, Martin explained on BBC Radio 4’s Today programme that bills are expected to spike in October and again in January. He said the choice facing the Government is “you either have to cut prices for people or you have to put more money in their pockets, especially at the poorest level”.
This comes as Russia cuts its gas supply to Germany to only a fifth of what it is normally which spurred wholesale prices to spike to a record high on Wednesday morning to 530p per therm. Industry experts warn this will go higher if Russia continues to reduce it, or even stop it all together.
While the UK only relies on a small percentage of gas from Russia, it is still heavily linked with Europe by pipelines, and is reliant on it to secure LNG cargoes. As a result, prices in the UK are closely correlated with those on the European continent.
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