Cost of living: Martin Lewis sets out energy price cap predictions
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The founder of Money Saving Expert appeared on ITV’s This Morning to urge that more Government action is needed to address the “horrific” cost of living crisis. He spoke about the rising energy price cap and how it will affect Britons in the winter months.
He spoke about the rising energy price cap and how it will affect Britons in the winter months.
He said: “The latest prediction for October is up 65 percent on where we are now, taking a typical bill to £3,244.
“It will then rise again four percent in January to over £3,300, and then probably start to drop, but only by five percent next April, meaning it will be far more than now.
“To put that in perspective, that means if that prediction is true, the October price cap for somebody on typical use, at £3,244, is more than a third of the full new state pension, more than a third of your entire year’s pension.
“It’s an even bigger proportion of the old pension, and of course, old people tend to use even more energy, and that’s just typical rates.”
The financial expert also told the programme that he had just had an update from energy regulator, Ofgem.
He said that some 500,000 who pay by direct debit have seen their energy bills double in recent months.
He said that for those in this situation, they should be contacted by their energy provider to discuss the issue.
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Each UK household is to receive £400 to help with their energy bills, along with other help for people in low incomes.
From tomorrow, those on Universal Credit are to receive the first instalment of a £650 payment to help with the soaring cost of living.
But Mr Lewis has previously warned that the spiking prices are outpacing the support payments.
He told listeners on Radio 4: “The rise in the prediction alone from the May period when the Chancellor set the help package, is £450, which is bigger than every household was going to be given then.”
He said later: “We’re not getting the solutions from the Government.
“The only way we’re going to see lower bills than £3,244 or people being helped, so that we don’t have people having to choose between starving and eating this winter, is by Governmental action.”
Families could soon be paying out the equivalent of £367 a month on energy bills, Invest utilities analyst Martin Young warned.
Ofgem chief executive Jonathan Brearley spoke to MPs on Monday, refusing to confirm if the cap could reach a figure in excess of £3,200.
He said: “It’s clear given the pricing dynamics we’re seeing, given the ongoing impact of the Russian invasion of Ukraine, that there is positive pricing pressure there.
“But we don’t give an ongoing sort of commentary until we make our formal announcement.”
UK households use 76 percent of their gas each year during the winter months.
A DWP spokesperson previously told Express.co.uk: “We recognise that millions of households across the UK are struggling to make their incomes stretch to cover the rising cost of living, which is why, in addition to the more than £22billion announced previously, we are providing over £15billion in further support, targeted particularly at those with the greatest need.”
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