ENERGY bills will increase by 6.4%- the third rise in a row - in April 2025. Martin Lewis has shared his advice on finding the best deals for gas and electricity bills.
On his ITV show tonight ( Tuesday, March 18) he will be busting bills, and looking at the best ways to save money with rising costs of energy, water, broadband, food and mortgages.
In a tweet at the time of the announcement, he said: "THE PRICE CAP IS A PANTS CAP GET OFF IT IF YOU CAN - FIX NOW IF YOU HAVEN'T ALREADY.
"The cheapest year-long standalone fixes right now are about 4% LESS than the current Cap, never mind once it rises in April, so if you get a good fix now you lock in at a cheaper rate for a year, get price certainty, save instantly and save relatively more once we get to April."
What is the best energy price fix to beat the cap?
The Money Saving Expert founder added that the cheapest fix depends on where you live and how much you use, so urged billpayers to do a comparison.
NEWS. ENERGY PRICE CAP TO RISE AGAIN, 6.4% ON 1 APRIL. This follows the 1% rise in Jan and 10% last Oct. Here's my instant briefing (feel free to share) including WHAT TO DO. Lets start with the avg Direct Debit Cap... ELEC Standing charge 53.8p/day (from 60.97p) DOWN 11% Unit…
— Martin Lewis (@MartinSLewis) February 25, 2025
Looking further ahead, he added: "The current analysts' predictions are once the price rises in April, it will stay at roughly that rate for the next year.
"Though the further out you go the more crystal ball gazing that is (and the chance of peace in Ukraine, the middle east, or US pumping out oil could see energy prices fall). Still the safe bet based on current predictions is to fix."
The increase will raise the average bill for households in England, Scotland and Wales on a standard variable tariff from the current £1,738 a year to £1,849, followed a recent spike in wholesale prices.
The rise will equate to £111 for an average household per year, or around £9.25 a month, over the three-month period of the price cap.
This is 9.4% or £159 higher than this time last year but £531 or 22% lower than at the height of the energy crisis at the start of 2023.
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Best deal for those not fixing
He also looked at options for those who can't or don't want to fix: "Those with very low usage only (under say £80 a month) should also look at British Gas & EDFs special tracker deals which discount £50 off the annual standing charge."
How to get a better deal for gas and electricity
Martin is very clear on this - get off the Energy Price Cap - or the 'pants cap', as he calls it.
He says to choose the best-fixed deal, customers should use a comparison site that takes in the whole market by default rather than cutting out some suppliers who do not pay to be listed. He recommended his own Cheap Energy Club, as it compares all energy deals, rather than just the sponsored options.
“And remember that when you do a comparison, remember that the savings you’re given on the cheapest fix are compared to the current price cap," he says.
"So they won’t look big, they might say £30, £40 a year. But remember it’s going up by 6% so if you do nothing your price would rise whereas if you fix your price would drop."
What is the energy price cap?
The term is quite confusing and it's important to note it's not the maximum price you will pay - it's an average. If you use more, you will pay more.
The cap was introduced on January 1 2019 by regulator Ofgem, with the aim of preventing the millions of households on expensive variable tariffs from being ripped off.
But it only limits what you pay for each unit of gas and electricity that you use.
It's based roughly on wholesale energy prices (those that firms pay) and applies only to providers' standard and default tariffs, which the vast majority of households are now on.
Warm Home Discount
There was some positive news, with an expansion of the £150 Warm Home Discount to 2.7m more low income households winter 2025/26.
Martin Lewis added: "It’ll be done by getting rid of the ‘high energy cost’ criteria for those on means tested benefits like Universal Credit (which helps working people and non working on low incomes).
"That’s good as it’s a terribly implemented system which left many, literally, unfairly out in the cold."
