Martin Lewis has warned that the energy price cap could increase by as much as 28.8% in January 2027, calling the prediction 'awful' but insisting 'this is real'. The money saving expert shared his latest forecasts with his followers on X, apologising for 'the fear' the predictions might cause but reiterating their accuracy.
Prediction based on wholesale rates
Mr Lewis explained that the forecast comes from an internal Money Saving Expert document that averages three forecasts, noting how the projections have changed over recent weeks as wholesale rates have 'continued to rocket'. He 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 the assessment period is 85% complete, while April and July predictions are 'much more crystal ballgazing'.
Response to criticism
Responding to comments that he was 'scaring people' with the predictions, Mr Lewis said: "I find comments like this (on another platform) in response to this post, difficult." He continued: "Why don't you stop scaring people with this stuff?' I'm sorry about the fear. Yet this is real. We are now 17/20 of the way through the assessment period. The rise will almost certainly be 20% to 30%."
He added: "I'm not responsible for higher prices, my hope is awareness helps people prepare, informs decisions, and ensures policy makers know that people know."
Current price cap context
The warning comes after Ofgem's price cap rose by 4% last month, with households across the UK seeing a £60 rise in their energy bills from October 1. Over four million homes remain on a standard energy tariff, with the average household in England, Scotland and Wales paying by direct debit for gas and electricity now paying £1,723, up £5 a month or £60 a year, for their bills.
