Martin Lewis has issued an urgent warning for customers of major energy suppliers including Octopus Energy, British Gas, E.ON Next, OVO Energy, EDF Energy and Scottish Power. The personal finance expert shared findings from Money Saving Expert (MSE) analysis suggesting consumers face nearly 30% hikes in energy bills in January.
Price cap predictions worsen
The UK energy price cap climbed by 3.6% (rounded to 4%) on October 1, pushing the average annual bill for a typical dual-fuel household paying by monthly Direct Debit to £1,723. While prices had been predicted to rise by more than 20% in January, Lewis disclosed that this figure is likely to considerably underestimate the true impact.
Lewis said: "The latest predictions for the January Price Cap - AWFUL, up 28.8%! This is our internal MSE document where we average three forecasts and how its changed over the past few weeks as wholesale rates have continued to rocket." He added that the January prediction is "getting much more locked in as we're 85% through the August 19 to November 17 2026 assessment period," while April and July predictions remain uncertain.
Government support measures
During last week's Budget, Chancellor John Healey unveiled measures to help households with bills that have rocketed following Donald Trump's attack on Iran. Those in council tax bands A to D will receive £100 towards energy costs this winter, with the payment paid directly into bank accounts from January 2027.
He also outlined plans to scrap the gas standing charge by the end of 2027 or at the earliest opportunity thereafter. This is a fixed daily fee added to gas bills, regardless of how much gas a household actually uses. The existing temporary freeze on VAT on electricity bills has been extended until July 2027, having originally been due to end on March 31, 2027.
Winter Fuel Payment details
State Pensioners also receive the Winter Fuel Payment, an annual, tax-free sum from the government intended to help older households meet heating costs during colder months. Those born on or before June 27, 1960 could receive between £100 and £300 for winter 2026 to 2027. Recipients are entitled to either £200 if born between September 28, 1946 and June 27, 1960, or £300 if born before September 28, 1946.
Should combined earnings surpass £35,000, HM Revenue and Customs (HMRC) will recover the Winter Fuel Payment via taxation. Prime Minister Andy Burnham said: "Abolishing gas standing charges is about basic fairness and giving people more control over their bills. I am determined to reform our broken energy market, so it better serves the public interest."
