“People Can and Should Save by Switching”: Martin Lewis Advises on Whether to Fix Energy Bills Amid Price Cap Hike

Martin Lewis has offered crucial advice to UK households facing a decision on whether to “fix” their energy bills or stick with their current rates. As the new Ofgem energy price cap was confirmed, the financial expert and host of the BBC Sounds podcast, who frequently appears on ITV, shared his insights on how to navigate the upcoming changes.

Taking to Twitter/X, Mr. Lewis provided his verdict ahead of the anticipated October 1 price cap increase, which is set to rise by £146. He emphasized that “people can and should save by switching” to a fixed energy tariff, especially with the current market conditions. According to Mr. Lewis, the cheapest year-long energy fixes available right now are approximately 7% lower than the new October price cap, making them an attractive option for those looking to manage their energy costs.

However, Mr. Lewis also issued a warning: “They mightn’t be around long. That looks a good deal, as it’s currently predicted once rates go up they won’t come down.” He further advised that if consumers find a fix that is up to 11% more expensive than the current (July to September) price cap, it is predicted they will save money over the course of the year compared to staying on the fluctuating price cap, told Birmingham Mail.

The discussion sparked a range of reactions from Twitter/X users, with many expressing frustration over the high costs associated with energy bills, particularly standing charges. One user commented, “Gas & Electric standing charges are the biggest scam in history. In the summer months, I’m basically only paying a standing charge, and it’s still £60/month!” Another user voiced their discontent, stating, “The biggest problem is a thing called PROFITS… If the government introduced a cap on the profits the energy companies make, it could lower prices consumers have to pay. Currently, their profits are obscene whilst people are struggling to pay their bills. A new regulator please.”

The conversation also touched on broader issues related to energy costs and government policies. One user pointed out the challenges faced by pensioners, particularly those who struggle with heating their homes during winter. “Somewhat ironic that Labour is making it more difficult for old pensioners to heat their homes whilst committing £11bn to climate aid funding for foreign countries,” they noted.

Another user raised concerns about the fairness of standing charges for single pensioners, saying, “I am a single pensioner, and I agree that the winter fuel payment should be more focused on those that need it. However, I also think it is unfair for single householders to pay the whole standing charge. What about a reduction in standing charge like there is for council tax?”

Amid these concerns, Mr. Lewis’s advice serves as a reminder for households to carefully consider their options in the face of rising energy costs. Whether to switch to a fixed tariff or remain on the price cap, the decision could significantly impact household budgets as energy prices continue to fluctuate.