Martin Lewis urges Brits to make one crucial move now to avoid July bill hike - 'save 15%'
Martin Lewis just shared the one move that could save you cash for a year from July.
Brits urged to make one crucial move now to avoid July bill hike
Martin Lewis has urged Brits to lock in a fixed tariff now to avoid the "voluntary" July energy bill hike. Speaking on This Morning, the money saving expert said most people can avoid the upcoming price cap increase on July 1.
Energy regulator Ofgem confirmed that the energy bill cap, which changes every three months, will increase from £1,641 to £1,862 a year for a 'typical' household paying by Direct Debit using both electricity and gas. This reflects a rise of about £221 a year for every household, equivalent to around 13.5%.
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But the founder of MoneySavingExpert.co.uk said this was "voluntary" since there are fixed deals at 2% lower than the current price cap. So locking in a fixed deal now could save you about 15% in total.
"You can fix now at 2% below the current price cap, so this is why I say the rise is voluntary," he told hosts Ben Shephard and Cat Deeley.
"In July this [the price cap] is going up 13%. So while it is only 2% cheaper now, compared to what you would pay if you did nothing in July, you're going to be saving about 15%."
Energy bills are spiking because the wholesale prices have shot up due to the US-Israel war with Iran, and prices are still volatile.
So while this could save you up t 15% in July, Mr Lewis said the savings could continue until the end of the year, since the price cap is expected to rise in October too.
"The current prediction for October, which is of course more important because we're getting into the winter period, is up about 2% and January is the same.
"It coud be that if the Middle East conflict ended tomorrow, the October rate would drop but it is very unlikely that it will drop to the current price cap rate."
"You're pretty guaranteed that that the price cap is going to be higher than it is right now and at least until the end of the year and probably through January as well."
If you are not sure which tariff you are on, you can check with your supplier, but you are likely to be on the price cap if you're not on a fix or special deal.
