Martin Lewis has shared advice to Brits on what they should and shouldn't do amid sky-rocketing energy bills.
The regulator Ofgem yesterday confirmed that it was hiking its energy price cap by almost £700 - adding to the bills misery families are feeling as part of the cost of living crisis.
Those on default tariffs paying by direct debit will see an increase of £693 from £1,277 to £1,971 from April 1 - up around 54%.
Prepayment customers will be worse hit, with an increase of £708 from £1,309 to £2,017. The move will affect some 22 million households.
We round up what tips Martin has issued following the announcement and his analysis on what it means for families:
Energy hike ‘worse than expected’
Speaking straight after the Ofgem announcement, Martin warned how the huge price increase will be "catastrophic and disastrous for people's bills".
"How the hell are so many people ... they are not going to be able to afford it!" he said.
“Help is desperately needed. I’ve been calling on this since June last year. We knew this was coming. We didn’t know quite how big until the last few months so this is not unexpected.”
Should you switch energy provider?
Martin addressed what people should do next on his ITV show last night - and the answer is still “do nothing” for most households.
Before the energy crisis, customers would typically be encouraged to shop around for a cheap deal, instead of rolling on to the price cap.
But rising prices has flipped this advice, as there are currently no fixed rates on the open market that beats the energy price cap.
Are you worried about rising energy bills? Let us know: mirror.money.saving@mirror.co.uk
The price cap is expected to rise again in October with some experts anticipating another 20% increase if wholesale rates stay as they are now - pushing it above the £2,300 mark, said Martin.
“I’ve done the numbers - I’ve had to make a lot of assumptions, I don’t have a crystal ball,” he explained.
“If we assume that in October, the price cap stays where it is in April, you would have to find a fix that is less than 44% more expensive than where we are right now for it to be worth fixing.
“If we think it’s going to go up in October, as that line [on the graph] shows by 20%, you’d need to find a fix that is now more than 59% more than the price cap today.
“The cheapest fix right now is 68% more than the current price cap - way more than the April 1 price cap, even more than my high end scenario in October
“Of course, anything could happen - but there ain’t no market fix that you should be going for right now.
“Maybe some existing customers in certain circumstances with high or low use might find one in these yellow lines [on the graph] but the message for most people: do nothing. Stick on the price cap. Don’t fix.”
What help can you get now to pay your bills?
The MoneySavingExpert also interviewed Chancellor Rishi Sunak about the government support he announced to help combat rising bills.
Households will get a £200 upfront discount on their energy bills - but it'll need to be paid back at a rate of £40 per year over five years from 2023 to 2027.
Millions of Brits across the UK will also be eligible for a £150 rebate off their council tax bill this year.
This will be for all households in England that are in council tax bands A, B, C or D - the government says this covers around 80% of all homes.
But Martin warned how this help might not go far enough.
Speaking to the Chancellor, Martin said: "I have been using the phrase and I don't think this is an exaggeration: some will have to choose whether they freeze or whether they starve. We have seen food bank usage go up.
"Do you believe that we are now in a position in this country where no one will have to choose between heating and starving?"
In response, the Chancellor argued that the government has helped the people in the "most vulnerable situations and on the lowest income" get the most support.
Can you get £140 through the Warm Home Discount scheme?
Martin has urged households not to miss out on £140 payments, dished out through the Warm Home Discount scheme - but you'll need to be quick.
Only four suppliers are still accepting new applications.
Speaking on his ITV show last week, Martin said: "Are you a customer of Bulb, E.on or So Energy? Their Warm Home Discounts are still open - that’s £140 towards people on low income.
The money from the Warm Home Discount Scheme is not paid to you as a cash sum.
Instead, it is normally paid directly to your energy supplier, who will then apply the discount to your energy bills.
To qualify for the Warm Home Discount scheme, you must fall into one of the two categories:
- You get the Guarantee Credit element of Pension Credit - known as the "core group"
- You’re on a low income and meet your energy supplier’s criteria for the scheme - known as the "broader group"
What should I do to save money on my bills?
The MoneySavingExpert team regularly shares tips and advice on how to slash your bills.
In the case of energy bills, one way to cut costs is to lower your energy consumption - and this can be done in ways that don't really impact your life.
MSE suggests this could be simple things like turning down the thermostat by just one degrees and wearing jumpers.
Turn lights off when you leave a room, taking shorter showers, using energy saving light bulbs and not leaving electrical goods on standby are also effective ways to reduce your bills.
If you're falling behind with your energy bills, contact your supplier as soon as possible - don't suffer in silence.
Under rules from regulator Ofgem, your energy provider has to help you.
For example, they may put you on a payment plan or you may be eligible for charitable trusts and funds that can help if you're in debt.
