Martin Lewis has issued a lunchtime warning for customers of major energy suppliers including Octopus Energy, British Gas, E.ON Next, OVO Energy, EDF Energy and Scottish Power, saying new data points to an "awful" 28.8% rise in the January energy price cap.
The personal finance expert said Money Saving Expert (MSE) analysis, which averages three forecasts, shows the January cap could increase by 28.8%, far exceeding the over 20% rise previously predicted.
Wholesale rates 'rocketing'
Lewis explained that the prediction has become more certain as the assessment period is now 85% complete. 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: "PS Jan prediction is getting much more locked in as we're 85% through the August 19 to November 17 2026 assessment period. April & July predictions are much more crystal ballgazing."
On unit rates, Lewis said: "Some asking me for the KwH unit rates. These are just averaged predictions at the moment, & ultimately it'll depend on Ofgem's cost allocations. Trend wise on recently its tended to increase unit rates more than Standing Charge, so I'd guess the bulk will go on that."
Government support measures
The UK energy price cap increased by 3.6% on October 1, bringing the average annual bill for a typical dual-fuel household paying by monthly Direct Debit to £1,723.
In last week's Budget, Chancellor John Healey made changes to help with bills. People living in council band A to D are being given £100 to help with energy bills this winter, with the money going into bank accounts from January 2027.
He also said he wants to remove the gas standing charge by the end of 2027 or as soon as possible after then. The current temporary removal of VAT from electricity bills was extended until July 2027.
Winter Fuel Payment details
State Pensioners also get the Winter Fuel Payment, an annual, tax-free cash payment to help older households cover heating bills. People born on or before 27 June 1960 could get between £100 and £300 for winter 2026 to 2027.
People get either £200 if born between 28 September 1946 and 27 June 1960, or £300 if born before 28 September 1946. If their total income is over £35,000, HM Revenue and Customs (HMRC) will take the payment back through tax.
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."
