Finance expert Martin Lewis is urging people to heed his advice on energy bills as prices are expected to surge starting from October. The founder of Money Saving Expert shared his insights on the latest episode of his BBC Sounds podcast released on September 12. Martin took to X to share the episode and stated, “If you’re wondering what to do with energy bills with the big hikes coming, here I talk you through it, step-by-step in simple terms, to hopefully make it easy for you to work out. Please share with anyone who mentions it.”
During the podcast, Martin discussed the upcoming rise in the energy price cap on October 1, addressing the dilemma of whether it’s better to fix or stick with the price cap. He highlighted that households can expect to pay around 10% more for energy this winter due to the October price cap adjustment. Martin pointed out that for someone currently paying £1,570 a year, the average cost is set to increase to £1,720 a year from October 1. Looking ahead, projections suggest a further 1% to 3% rise in January, followed by a 1% drop in April and a 2% drop in July.
Considering the options, Martin recommended fixing the energy tariff for those who are risk-averse. He mentioned a newly launched one-year fix by British Gas, which offers a rate approximately 5% higher than the current price cap but 4% less than the October price cap. This fix provides a guarantee of no rate rises for a year, offering stability and potential savings. Similar fixed-price tariffs are also available from other providers like Outfox, Market, Eonext, and Octopus.
The potential trajectory of energy bill prices could lead to a significant increase in costs for consumers over the coming months. Martin advised listeners to consider their options carefully to mitigate the impact of rising energy prices. By locking in a fixed-rate tariff now, households can secure some financial stability amid the uncertainty of future price fluctuations in the energy market.
This proactive approach to managing energy bills could help consumers navigate the impending cost hikes and ensure they are better prepared to handle their energy expenses efficiently. As the deadline approaches, it is vital for individuals to explore different tariff options and make informed decisions to safeguard their household budgets from the impending fluctuations in energy prices. Martin’s expert guidance serves as a timely reminder for everyone to stay vigilant and proactive when it comes to managing their energy costs to avoid any unwelcome surprises in the future.