A new calculator from Money Saving Expert has been made available to customers so they can estimate how much their energy costs would increase. Martin Lewis has warned that because of the increase in the energy price cap, people may perish this winter. This week, it was announced that the energy cap would increase by 80% in October. Both January and April of next year are predicted to see additional increases. Martin Lewis, a MoneySavingExpert, has urged the government to take additional steps to assist citizens in coping with the price increases.
What is the increase in the cap?
The energy price cap will increase by 80.06% starting in October, increasing the typical household’s annual bill from £1,971 to £3,549, according to Ofgem.
On October 1, the cap will go into force for the roughly 24 million households in England, Scotland, and Wales with default energy tariffs. It will stay in effect until December 31, at which point it will be raised once again.
Although some suppliers may start to increase direct debits before October 1 in order to spread expenses, Ofgem issued a warning.
Who said anything, Martin Lewis?
I’ve been accused of catastrophizing over this scenario, Mr. Lewis said on the Today Programme of BBC Radio 4. To put it simply, this is a catastrophe, which is why I have been so dramatic.
Lives will be lost this winter if we do not receive additional government assistance beyond what was announced in May.
The average yearly rate for the 4.5 million pre-payment metre consumers will increase to £3,608. These customers are frequently the most needy and already experience fuel poverty.
But Mr. Lewis predicted that many people would pay significantly more.
According to him, if you have excessive usage, you may easily be spending £5,000 or £10,000 year.
“I am quite concerned for those people who have impaired children or are ill themselves and require a lot of electrical equipment to heat their homes due to a variety of medical issues.”
In January, according to Mr. Lewis, costs will be “unaffordable” for many.
The projection for January is up an additional 51% from where we are right now, bringing the average bill with direct debit to £5,386 per year, the speaker continued.
Was there anything he said regarding the Don’t Pay movement?
Mr. Lewis urged the next prime minister to spend billions on resolving the situation and claimed a movement to refuse to pay energy bills is “increasing.”
“We must hope that, once we have someone in place, they will come up with a robust, powerful policy that we can all support,” he said. “We must hope that this policy will feed them and provide them with heat so that people don’t die because of these price cuts these winters.”
The financial expert continued, “I think folks from the Don’t Pay movement will become a larger voice in this country if it isn’t in place.”
What suggestions did he make to the government?
Martin Lewis stated on Twitter that many people would find these rates to be mathematically unaffordable. The full new state pension is £9,600 per year, the full old state pension is £7,400 per year, and many seniors receive higher than usual benefits. For individuals receiving benefits and having disabilities, bills make up an even greater percentage of expenses. This is why I beg, plead, and pray for you, @trussliz or @RishiSunak, to close that gap on the day you are appointed PM: “If not, the risk to millions’ physical and mental health is unimaginable. And I’ll be the first to applaud if the package is perfect, as I did in May. kindly assist me.