Martin Lewis has made an urgent plea to the government and future prime minister as households prepare to brace for the increased energy price cap in winter.
Ofgem confirmed the energy price cap will rise by 80%, propelling it from £1,971 to £3,549 annually from October 1. The cap will affect around 24 million households in England, Scotland, and Wales on default energy tariffs. Furthermore, 4.5 million pre-payment meter customers will see an even higher increase to £3,608.
It has led to increasing concerns about the impact on many vulnerable and struggling households who are already finding financial difficulty with the worsening cost of living crisis sweeping the UK. In response to the news, Mr Lewis broke down why the government must do more to help the most vulnerable households.
Read more: What happens if you are struggling to pay energy bills and can't afford price cap
Writing on Twitter, he said: "In May the govt announced an up to £1,200 for vulnerable homes (£400 for all homes) package of energy help, based on a predicted 42% rise in the energy price cap in October (taking a typical bill to £2,800). Crucially this was to cover the 6 monthly Oct to Apr cap.
"Ofgem then changes the rules so price caps would only be 3 months long (to protect energy retailers cash flows to stop em going bust - we objected in our consultation response). The actual 1 Oct rise is now crystallised at 80%, taking a typical direct debit bill to £3,549 a year.
"In January a further 41% rise is predicted by @CornwallInsight taking a typical bill to £5,386 a year. The Jan prediction is likely in the right ballpark as we are 7 months through the 10 month assessment period.
"This means while the help announced in May was based on a rise of 42%, the average rise for the same 6 month period over the two caps is 126%. Thus the projected yearly cost for a typical home is likely to be £1,660 a year more than the £900 a year rise than thought.
"Over the winter 6 months alone that means a typical household will have to find a further £880 on top of the help level given. Though in fact energy prices aren't expected to drop substantially even after that - high rates will likely last at least to the end of 2023.
"These rates are mathematically unaffordable for many. The full new state pension is £9,600 a year, the older one £7,400 a year, and remember many pensioners have higher than typical use. Bills are an even bigger proportion for many on benefits and with disabilities."
He continues: "This is why @trussliz or @RishiSUnak, on the day you become PM I beg, plead, pray you will bridge that gap. If not the physical and mental health risk to millions is unthinkable.
"And if the package is right, as I did in May, I'll be the first to applaud. Please help."
Read next:
Everything you need to know about the energy price cap change
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