Finance expert Martin Lewis described a further energy price cap rise in the autumn as "like panto". A one-off live special of this money show aired on ITV on Tuesday with the broadcaster focusing on the cost of living crisis.
“Inflation is at a catastrophic high. Interest rates, food, petrol costs are rocketing and today we hear Ofgem estimating another 42% hike in the energy price,” he said. The audience groaned as he got to the end of his sentence with Martin adding: "Exactly. It feels like panto – I wish it was."
He added: “Together these are curtailing lifestyles for millions of people and I worry they are close to curtailing lives for some who are most in need." But Martin stressed that the show was a “practical not political one” and that he would take viewers’ questions on energy bills and the cost of living crisis.
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He spent part of the hour-long special discussing holidays and taking questions about the cost of living with viewers encouraged to send in their questions via Twitter or email. Co-presenter Angellica Bell said that the pair were being “swamped” with energy questions following the recent announcement from Ofgem.
The MoneySavingExpert founder took time out of the show, which was originally meant to be dedicated to travel issues, to answer questions about the cost of living crisis and energy questions. The presenter issued urgent advice to those switching energy tariffs. With the cap set to rise by 42% in October households could end up paying in the region of £2,800, Ofgem says.
One viewer, Andrew from Teeside, asked Martin if he should switch from a variable tariff to a fixed rate. Martin offered some insight, saying: “The cap will go up 42%. Even then the new price cap is going to be [in place] for three months but we are expecting the next price cap to be the same.
“Then it might go down. If you can find a fixed rate 30% below it it might work. We are seeing existing customer fixes. I believe there is an Eon two-year fix and a British Gas fix that are within the 30%. If you find one and it is less than 30% than you pay now you might want to look at it.”
In the special Martin also revealed that he had asked Rishi Sunak to do more about the cost of living crisis, saying: "I was on the phone to the chancellor yesterday. And I was pushing very hard because I'm very worried about people making the choice between freezing and starving.
"They absolutely are aware of those difficulties. £165bn of extra savings were built up during the pandemic – those savings were for a rainy day and the truth is it's raining. People who have the savings are expected to use it, those who have the resilience are expected to use it. My concern is those who don't have the resilience. Help is needed. And I think there will be more help coming – I don't know how big it will be."
