Martin Lewis has shared advice to help UK households navigate potential energy bill increases, with the price cap dropping in April but possible rises from July
Martin Lewis has issued guidance to UK households – file image(Image: ITV screengrab)
Martin Lewis has moved to clarify “confusion” surrounding household gas and electricity bills following an energy price surge triggered by conflict in the Middle East. The money-saving expert has acknowledged there has been considerable discussion and “a little confusion” about energy costs in a social media post on Monday (March 16).
Sharing what he described as a “quick” set of “notes”, Lewis explained that the energy price cap would fall on April 1 by 6.7%, impacting most households across England, Scotland and Wales. Ofgem’s energy price cap protection between April 1 and June 30 is fixed at £1,641 for a typical household using electricity and gas and paying by Direct Debit.
This represents a decrease from the £1,758 cap in place between January 1 and March 31. Lewis noted that under the April-June price cap, most existing fixed tariffs would decrease by 7% to 9% on April 1 and stay lower until their expiry, reports the Express.
He explained the analysis period – when industry experts examine wholesale prices to determine the July-September price cap – would conclude in mid-May. The personal finance specialist then warned the July-September price cap appeared set for a “heavy rise”, though he stressed much hinged on whether the US-Israeli conflict with Iran concludes before May.
Lewis suggested that even if the price cap increases significantly in July and hostilities have ceased by then, there “should be” numerous cheaper tariffs available for consumers to switch to.
He emphasised that those unable to switch providers would require safeguarding from price increases. The MoneySavingExpert.com founder warned that a critical “inflection point” could emerge if hostilities extend into July, costs stay elevated, affordable tariffs remain unavailable, the price cap increases “heavily” and appears likely to persist or climb further by October.
Lewis stated in a post on X: “That would be the inflection point where the calls for intervention will rise.” He concluded by noting: “There are still a few fixes available less than the current price cap, so if you are worried, many can lock in a rate now to ensure no hikes for the next year.”
His remarks followed Prime Minister Sir Keir Starmer’s commitment to assist British households struggling with living costs during the energy price surge. Speaking from Downing Street on Monday, Sir Keir announced: “I’m announcing immediate support for vulnerable heating oil customers today, providing £53 million for those households that are most exposed.”
He continued: “This Government will always support working people. That is my first instinct, my first priority, to help you with the cost of living throughout this crisis.”
Chancellor Rachel Reeves confirmed that Treasury officials have “found the money” to support the 1.5 million households dependent on the fuel. Heating oil falls outside the protection of the energy price cap, with its cost per litre having doubled due to restricted oil supplies from the Middle East since the US-Israeli conflict with Iran commenced.
As the principal benchmark for global oil trading, Brent crude prices have a direct impact on UK energy costs throughout the economy. Britain depends heavily on international gas markets for electricity generation, and these markets are substantially swayed by Brent crude pricing.
