Energy bills: James Cleverly says there will be support available
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Martin Lewis has been a key source of assistance for money-related queries, and the rising cost of living has been on his agenda. In particular, many Britons have expressed their concerns about rising energy bills.
The matter has even been addressed by the Government, with the Chancellor Rishi Sunak bringing in measures to help people reduce their bills.
For many, the coming months will be a struggle, and this was a situation expressed by one This Morning viewer.
A lady called Lynn called the show to ask Martin about her new energy tariff, which had skyrocketed recently.
While she previously paid £83 per month, she was now facing a bill of a staggering £189.
While usually opting for a fixed rate, Lynn explained she now has the opportunity to go onto a variable rate of £102.
However, she was fearful this could increase in coming months, and asked Martin for his assistance.
The financial journalist was clearly dismayed at the situation, describing it as “just awful” for those who are impacted.
He explained: “There’s no actual price cap, but I’m going to use the figures for somebody on typical usage.
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“If you use more, your numbers are higher, use less and yours are lower in proportion.
“The current price cap until the end of this month is £1,277. But from April 1, it’s going up 54 percent to £1,971.
“This is an enormous rise that everyone will be facing.
“So your number, your variable number I presume, is for now, and that will go up another 50 percent odd. It’ll take you to £150 per month.”
But Martin also highlighted a huge decision looming in October which could also affect the price cap.
He continued: “The October price cap is based on wholesale rates those energy firms paid over six months.
“We’re one month through that six months right now, so it is a lot of crystal ball gazing here, and I cannot promise the answer I’m going to give you now is correct.
“But based on where we are after the hideous things going on in Ukraine which mean the wholesale rates have spiked, it’s looking like in October, on top of the 54 percent rise in April, we will see another rise of around 45 to 50 percent.
“This will take a typical energy bill to £2,900 per year.”
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For Lynn, and others worried about what this kind of price rise will mean, Martin attempted to offer reassurance.
He suggested it may be worthwhile to look at some sort of fixed rate deal to ensure price certainty.
Martin added: “If you can find a fixed deal for a year or longer, that is no more than 25 percent above – base it on the rates, not the direct debits – no more than 25 percent above the April price cap, which is, you know, getting for 90 percent above the current price cap. Then I would look at fixing.”
The Money Saving Expert appeared distressed by the prospect of spiralling prices, but told viewers to consider the matter carefully, even if he could not promise the best outcome.
Martin Lewis is the Founder and Chair of MoneySavingExpert.com. To join the 13 million people who get his free Money Tips weekly email, go to www.moneysavingexpert.com/latesttip.
This Morning airs weekdays on ITV from 10am.
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