Earlier this week, Martin Lewis warned millions of households on typical usage, with a standard energy tariff, are facing a 64 per cent hike in bills from October following industry analysts’ new prediction that the Ofgem price cap will rise to £3,245. Cornwall Insight also estimates that it will go up by a further £360 in January to £3,364.
The founder of MoneySavingExpert.com is now warning that not having a new prime minister in place until September 5 is “too late” to prevent the “panic” that will arise as a result of the official confirmation from Ofgem of the October price cap, due to be announced in August. He added that by then, direct debits will already be rising, not leaving ministers enough time to act.
The consumer champion also suggested that this winter may even bring about the need for ‘warm banks’ - the equivalent of food banks, where people who can't afford to pay for heating can take refuge in a warm place.
Households across the country are already trying to cope with the current price cap of £1,971, whose impact may not be fully felt at the moment as most of the country enjoys warmer than average temperatures. But come the colder months, the founder of MonyeSavingExpert.com told BBC Radio 4’s PM programme last week that it is going to be a “very bleak winter” and described the energy crisis as a “cataclysmic issue” for the UK Government.
Posting on social media on Monday, Martin warned his 1.6 million Twitter followers: “Disappointed the 1922 committee are waiting until 5 Sept to announce new Conservative leader (aka PM).
“That's too late. The catastrophically high Oct price cap announcement a fortnight before will cause panic, DDs will already be rising. It's not enough time for ministers to act!.”
Earlier he tweeted: “Can't believe I'm writing this, but I wonder if this winter we’ll need 'warm banks' the equivalent of 'food banks' where people who can't afford heating are invited to spend their days at no cost with heating (eg libraries, public buildings)?”
Commenting on the latest price cap prediction, Dr Craig Lowrey, from Cornwall Insight, said: "There is always some hope that the market will stabilise and retreat in time for the setting of the January cap.
"However, with the announcement of the October cap only a month away, the high wholesale prices are already being 'baked in' to the figure, with little hope of relief from the predicted high energy bills."
Martin Lewis, members of the MoneySavingExpert team and representatives from leading charities Citizens Advice, National Energy Action and StepChange recently met with the CEO’s of OVO, British Gas, Octopus, E.ON, EDF and Shell to discuss the crisis facing many families this winter.
The group of leading charities and energy companies assembled to find ways to support struggling customers this winter.
With all attendees aligned on the unprecedented challenges ahead, the group agreed to work together on changes that can be implemented before the winter.
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