Money-saving guru Martin Lewis has issued an urgent warning to millions of UK households as the energy price cap is set to drop. The financial expert is urging consumers to review their energy deals immediately to avoid missing out on potential savings.
What's Changing with Energy Prices?
Ofgem, the energy regulator, has announced a 7% reduction in the price cap from 1 July. This means the average household paying by direct debit will see their annual bill decrease from £1,690 to £1,568 - a saving of £122.
Why Martin Lewis Says You Shouldn't Relax
While the price cap reduction brings some relief, Martin Lewis cautions that many consumers could still be paying more than necessary. 'The price cap isn't a cap on what you pay,' he explains. 'It's a cap on the standing charge and unit rate. Use more, pay more.'
Three Crucial Actions to Take Now
- Check if you're on the standard variable tariff - most people are, and it's rarely the cheapest option
- Compare energy deals - fixed-rate tariffs are returning to the market
- Consider your usage - reducing consumption remains the surest way to cut bills
The MSE founder particularly warns against complacency: 'Don't assume the price cap means you're getting a good deal. The energy market is changing rapidly, and better options may be available.'
What About Future Price Changes?
Analysts predict the price cap might rise again in October before falling slightly in January 2025. This volatility makes fixed deals worth considering for those seeking price certainty.
Martin Lewis concludes: 'The golden rule is - don't just sit there. Spend 10 minutes checking if you could save. For many, it could be hundreds of pounds.'
