Martin Lewis has warned that energy bills could rise sharply in January, describing the situation as a "nightmare" for Brits, after Chancellor John Healey announced an end to standing charges on gas bills for around 23 million households ahead of the Autumn Budget.
Standing Charges to End on Gas
Delivering further details on the breaking update during Good Morning Britain, Lewis said: "Standing charges are going to end on gas next year. So there's £108 a year coming off bills and it will be shifted onto the unit rate."
"What that means, as I've long said, is it means lower users will pay less. Higher users will pay more," he added.
Lewis, who has campaigned on the issue, said: "As someone who's been campaigning on this for a very long time, I think standing charges are a moral hazard. I think they disincentivise people from cutting their bills."
Expected January Price Cap Rise
He continued: "They're a poll tax on energy use. They're terrible, especially for older people in the summer when they're not using gas. For me, this is less about the money, this is more about fairness."
However, Lewis then warned viewers that he expects energy bills to rise sharply in January, describing it as a "nightmare" for Brits.
"The horror story is I'm currently expecting the energy price cap to go up 27 per cent in January. If you were to do that on an analysed basis, that's about £450 on the typical bill," he said.
Bill Shock and Support Options
Lewis explained the potential impact: "From January to March, after that it could go down if things happen in the Middle East. We are pretty sure that the January to March period is about 100 pounds on energy bills."
He noted that the warm home discount could help some: "That is the immediate bill shock in January alone. If you put the warm home discount up to 250 quid, that would just cover the January bill."
Lewis highlighted the challenge of targeting support: "The problem with doing the warm home discount is the people who are just above that support, the people who aren't on benefits, the people who are struggling and don't get any other help. I think that's the political decision they will have looked at."
He concluded: "Do you just help those on benefits or do you go higher up the help chain to try and look at other people. It's a nightmare what's going on in January."
