Martin Lewis discussed the January price cap which millions of households are set to face soon. It comes as the UK saw a huge 3.6% increase in energy costs take effect this month
Martin Lewis often shares advice on the energy price cap(Image: Getty Images)
With the new energy price cap now in effect as of October 1, 2026, many households saw their bills rise after the new Ofgem figures were announced.
Typically, UK homes will pay around £1,723 a year, a 4% increase, although you can check how your specific household bills are affected using the Mirror Energy Calculator. Although the prices increased this month, Brits are set for further disappointment as it’s believed costs will rise once again early next year. Now many fear the UK may have hit “breaking point” after Martin Lewis offered his analysis following this month’s energy price cap increase.
The Money Saving Expert founder weighed in on the January Energy Price Cap as he shared a graph on X which shows the relentless price hikes.
Speaking with his 3.2million followers on social media, Martin said: “The news over the weekend is cementing the likelihood of around 20% or bigger rises in the energy Price Cap in January.
“The graph shows UK natural gas prices (which strongly feeds into to our electricity price too) peaking again over the latest salvos in the Middle East and Ukraine conflicts.
“The dotted line and shaded area I’ve added into this Trading Economics graph show the assessment period for the January Cap (19 August to 17 November).
“It’s averaged over that period, so we’re now over half way through, and each high day bakes the average in higher.”
The graph, taken from Trading Economics, shows a consistent upward trend between May and June, before dropping slightly in July. The projection then climbs again in August before shooting up sharply beyond £204.07/thm by September.
Numerous followers voiced their concern as the post garnered 150,100 views in little more than 24 hours.
One commented: “Martin this cannot happen. The British public are well past breaking point.” Another added: “We are getting robbed. We simply won’t be able to afford heating or lighting anymore.”
While a third pointed out: “This will break many ordinary people.” And a fourth voiced: “Now compare it to the rest of the world! We [are] getting absolutely mugged off.”
What is the current energy price cap?
Energy bills increased by £60 a year from October as Ofgem announced the energy price cap would rise by 4%.
That works out as an extra £5 a month for the typical household, while the energy price cap would increase to £1,723 a year for the typical household who aren’t on a fixed tariff and pay by Direct Debit in England, Scotland and Wales.
This 4% increase is up from the £1,663 cap which was in place this year. Ofgem has attributed the rise in price cap to the ongoing situation in the Middle East. The conflict there is impacting the wholesale price of gas.
Why is gas more expensive than electricity?
According to Ofgem, wholesale gas prices have surged by a whopping 28% compared to the previous quarter. There’s also a lot more competition for these resources. Gas is also used to generate electricity, but we have a range of other resources too, like renewables and nuclear.
However, prices remain lower than the height of the energy crisis in 2022 when Russia invaded Ukraine – and the cap remains around the same level as it was during the same period last year.
