Martin Lewis has issued an urgent warning to households to switch from the energy price cap before predicted price hikes in July. The Money Saving Expert said that fixing energy bills has become cheaper following the ceasefire agreement between Iran and the US, but warned this opportunity may not last.
Lewis urged consumers to act now to lock in a fixed rate below the new lower April price cap, which most households are on. He highlighted that the price cap is predicted to jump 14% on July 1, making this a crucial time for those seeking certainty against rising rates.
The finance expert recommended conducting a full market comparison, as the price paid depends on location and payment method. He advised looking for deals that save even a small amount over the current cap, as far bigger savings will come from July.
On April 1, household energy prices dropped by 7%, with Ofgem's price cap falling from £1,758 to £1,641 – a reduction of £117 or around £10 a month for the average household. However, this is still £600 more than bills in the winter of 2020-2021, and further increases are expected.
Due to conflict in the Middle East, wholesale prices remain volatile, with predictions from Cornwall Insight suggesting a potential 18% rise in July, adding £288 a year. Lewis warned that this could be the last chance to lock in below the price cap, or fixes could get cheaper, but locking in now is the safe option for most households.
