Martin Lewis has issued an urgent warning to UK households about energy bills, following the announcement of a ceasefire in the Middle East. The MoneySavingExpert.com founder took to X to alert consumers that, for the first time in weeks, a few fixed energy deals are now cheaper than the upcoming April price cap.
Lewis advised those on the standard variable tariff to consider fixing now to avoid a predicted big hike in July. He cautioned that these deals could disappear quickly if market conditions change. The Ofgem price cap for a typical dual-fuel household paying by Direct Debit is set at £1,641 per year from April to June, a 6.6% decrease from the previous quarter.
However, due to events in Iran, analysts widely expect bills to rise again in July, with some estimates suggesting an increase of up to £480. The cheapest fixed deal currently available is from Outfox Energy, priced 1.6% below the current cap.
Smith, chief economist at the Resolution Foundation, noted that while de-escalation is welcome, the damage to household finances this year is largely already done. He added that for middle and higher income households, even the thin growth expected has tipped into negative territory.
