Martin Lewis has issued an urgent warning that energy bills could rise by almost 30% in January, with MoneySavingExpert analysis predicting a 28.8% increase in the price cap.
The forecast is far higher than earlier predictions of a rise above 20%, following weeks of rocketing wholesale energy rates. The current price cap, which rose by 3.6% on 1 October, puts the average annual bill for a typical dual-fuel household at £1,723.
Lewis calls forecast 'awful'
Lewis said: "The latest predictions for the January price cap — AWFUL, up 28.8%! Wholesale rates have continued to rocket."
He added: "PS Jan prediction is getting much more locked in as we're 85% through the August 19 to November 17 2026 assessment period. April and July predictions are much more crystal ballgazing."
Lewis also noted that unit rate predictions are averaged at this stage, with final figures depending on Ofgem's cost allocations. He said: "Trend-wise on recently it's tended to increase unit rates more than Standing Charge, so I'd guess the bulk will go on that."
Government support measures
In the Budget, Chancellor John Healey announced that households in council tax bands A to D will receive a £100 payment to help with energy bills, with the money going directly into bank accounts from January 2027. The VAT exemption on electricity bills was also extended until July 2027.
State pensioners born on or before 27 June 1960 can receive between £200 and £300 through the Winter Fuel Payment to help cover heating costs, though those earning over £35,000 will have it clawed back through tax.
Prime Minister Andy Burnham added: "Abolishing gas standing charges is about basic fairness and giving people more control over their bills."
