Last week, Martin Lewis shared new tariff deals being offered to some existing consumers across the UK which could help millions of households reduce the impact of the next Ofgem price cap due to kick in on October 1.
The financial guru took to social media on Thursday to warn existing customers that those deals may not be around for much longer due to a “spike” in wholesale energy prices which could lead to them being withdrawn by suppliers and replaced by “costlier” tariffs.
The latest predictions from the energy regulator indicate gas and electricity bills could sky-rocket by £800 to £2,800 in October and the founder of MoneySavingExpert.com’s advice if you are considering fixing your tariff, is to do it now.
Martin posted on Twitter to his 1.5m followers: “WARNING: Wholesale energy prices have spiked over the last week, so it's plausible energy firms will pull the cheapest existing customer fixes & replace with costlier.
“If u are considering fixing, my best guess is go asap."
He also shared a link to a handy guide on fixing tariffs on the MoneySavingExpert.com explaining whether or not it’s the right fit for your household - read it here.
The best way to find out about energy fix tariffs from your supplier is to call them and ask as these deals are not made public.
Be prepared to wait in a virtual queue though as customer service lines continue to be busy with high demand for help.
Households have also been warned that the price of everyday items may increase even further than previously predicted following the Bank of England’s interest rate rise to 1.25% in a bid to contain soaring inflation.
The rise of 0.25% is a bid by the Bank of England to tackle an inflation rate that is heading towards 11% - currently at 9% - due to increasing energy bills and the rising cost of living.
Commenting on the current energy crisis, Helen Morrissey, senior pensions and retirement analyst at Hargreaves Lansdown, said: “Energy costs are the biggest pressure on household budgets with well over half of people worried about how they are going to pay them.
“Concerns about paying for other essentials such as transport and food are also high but pale in comparison against the challenge of heating our homes.
“These concerns are well placed, households have already had to absorb an enormous hike in the energy price cap in April and the dread of a potential further £800 hike to come in Autumn is very worrying.”
The UK Government has stepped in with a package of measures designed to alleviate the worst of the cost hikes with payments being issued over the coming months - the first half of the Cost of Living £650 payment for £326 will be paid from July 14.
However, Helen warns: “These may only prove to bring short term relief with prices likely to continue rising for some time to come. We could see the UK Government coming under further pressure as we approach Winter to offer more support.”
A new report by the BBC has found that people across the UK are already spending less in a bid to meet their mounting costs and their big worry about energy is that it’s much harder to cut back on than other things.
Helen added: “The reality is prices continue to race ahead and people will be left with harder choices about heating their homes as we approach the colder winter months.”
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