Martin Lewis says ‘don’t stick with your own’ ahead of energy price cap surge

Martin Lewis explained on Good Morning Britain what to do with bills set to rise

Martin Lewis has offered guidance on how households can shield themselves from soaring energy bills triggered by the conflict in Iran. It was revealed today (Wednesday, May 20) that inflation had dropped to its lowest point in over a year in some welcome news for Britons.

Consumer Prices Index inflation fell to 2.8 per cent in April, down from 3.3 per cent in March as a decline in energy prices counterbalanced rising fuel costs. A combination of Ofgem reducing its energy price cap by 7 per cent for the typical household using both electricity and gas, alongside Government interventions to cut bills, is believed to be behind the fall.

However, it arrived with a caution that the price cap is expected to increase when it’s revised in July, as the US-Israeli strikes on Iran have caused energy costs to surge.

Speaking on Good Morning Britain about the circumstances, Mr Lewis said: “The assessment date for the energy price cap closed. The July price cap closed on Monday and it’s looking like it will go up 13 per cent for the July to October price cap.

“The real question is what happens in October and what happens in January, and currently that’s looking to have prices at the same level, and that’s what will hurt things.

“Now, if the Middle East crisis were to end soon, we might see those prices not be as high. They’ll still be higher than they are right now, I would think, but not be as high.

“The solutions aren’t great, but you can get onto comparison sites right now and get a fixed rate that’s the same rate as the current price cap. So, you can lock in here, and prices are going to go up 13 per cent and then probably stay somewhere out here for the next year.

“So, if you can lock in, while you won’t save much right now if you’re fixing at about the current price cap, from July you will start to save, and you can act to prevent those price rises. Don’t stick with your own company because there are very few cheap fixes out there. You need to go whole of market on a comparison site.”

Chancellor Rachel Reeves is anticipated to unveil a package of cost-of-living measures this week in response, with Sir Keir Starmer confirming today that the 5p fuel duty rise has been delayed for the remainder of the year.

Ms Reeves said: “The war in Iran is not our war but one we will need to respond to, and the decisions I took in the budget last year have kept inflation down as we deal with global instability.

“We have the right economic plan, and to change course now would risk our economic stability and leave working people worse off.

“We have already taken £117 off energy bills, frozen rail fares, and lifted the two-child limit, and over today and tomorrow, I’ll set out the next phase of how we will support UK households.” Responding to the projected 13 per cent increase forecast for July to October, Mr Lewis went on to say: “Just to mitigate that slightly, it’s important to say that (the price cap) lasts three months and it (July to October) is the lowest use period of the year.

“We use about 15 per cent of our energy in that quarter of a year. So, in practical terms, for someone who pays £150 a month on energy, the total increase due to that energy price cap rise will be about 30 to 40 quid. I just need to, you know, say it’s not great, but it’s not catastrophic.”