Martin Lewis has issued urgent advice to UK households as energy bills are set to rise again. The energy price cap will increase by 13% in July, but the money expert emphasised that, for many people, this rise is "voluntary."
Understanding the Price Cap
The cap only dictates the rates paid by those on a standard default tariff, which households can end up on if they take no action. "If you're on a fix or a special deal, you're not price capped, so you're not going to see that rise in most cases," Mr Lewis said in a TikTok clip from his podcast.
Approximately 60% of households fall into the default tariff category, meaning the July rise will affect them automatically unless they act now.
The Opportunity to Save
Mr Lewis highlighted a current opportunity: "The cheapest fix right now is up to 3% cheaper than the current April price cap." The cap is £1,641 per year, and 3% of this amounts to £49.23.
"If you lock in a cheap fix right now, if you're on the price cap, you are forestalling all those price hikes and you're saving in the meantime," Mr Lewis added.
Future Predictions
The cap is predicted to increase by 13% in July, climb further in October, and remain elevated until around the end of March 2027. Locking in a fix now could allow people to avoid all those increases for the duration of the fix.
Public Reaction
Disgruntled bill payers voiced their frustrations in the comments. One person posted: "How the hell are our energy bills being allowed to rise this much? Especially when so many people are helping by selling solar back to the grid, which the energy companies have announced they are going to pay less for! Time for the energy companies to come back into public ownership."
Another added: "The cheapest I could find for my E-On electric or any company was £121 a month... from £95.77... time to go live back at home with my folks at 38 because they have communal heating."
A different user wrote: "How the hell did our energy bills increase 300% and continue to increase? Highest gas and electricity pricing in the world. Biggest robbery in history."
