August 23rd 2024.
Martin Lewis, a well-known expert in the field of personal finance, has recently shared valuable advice for customers in light of the latest increase in the energy price cap. As confirmed earlier today, households can expect to see an average rise of £149 on their annual energy bills starting from October. This announcement from Ofgem, the energy regulator, means that the price cap for a typical household paying by direct debit could potentially reach £1,717, up £149 from the current cap of £1,568.
This significant change amounts to about a 10% increase, which translates to an extra £12 on the average monthly bill, according to Ofgem's calculations. In response to this news, Martin Lewis broke his summer social media silence and took to Twitter to advise consumers to stay informed and consider switching energy providers to save money. "You need to look and see what tariffs are available out there," he stated.
Martin Lewis also made an appearance on Good Morning Britain to further share his views on the situation. "The current cheapest fix on the market is 7% cheaper than the 1st October price cap," he revealed. In addition, his statement emphasized the importance of finding the right energy deal for one's personal usage and location, suggesting the use of a whole-of-market comparison tool like MSE's Cheap Energy Club to find the best option.
While some may be hesitant to switch to a fixed rate tariff that may end up costing more than the current price cap, Martin assured that it would still be significantly less than what consumers could end up paying come October. He also cautioned against rushing into any fix and advised considering personal usage and location when choosing a provider.
Martin also shared some recommendations for providers that could help ease the impact of the price hike. "Deals like E.on Next's Pledge, or EDF Ensure are effectively discounted trackers, where they move with the price cap, but the unit rates or standing charges are guaranteed to be lower," he wrote. "And for more sophisticated energy users, the Octopus Agile and Tracker tariffs where prices move rapidly can be far cheaper."
Further analysis from Martin revealed that most of the increase in the price cap is due to the unit rate, rather than the standing charge. This means that those with higher energy usage, particularly gas, could see their costs go up by more than the 10% average. Ofgem's confirmation of the price cap increase for typical households paying by direct debit only solidifies the urgency for consumers to take action and find the best energy deal for their needs.
In addition to sharing his advice on energy bills, Martin also recently shared a pension hack that could potentially boost a person's pension. As stated in MSE's latest newsletter, buying back missing years in one's national insurance record could lead to a higher pension payout. With the deadline for this opportunity set for April 5, 2025, individuals between the ages of 40 to 73 have the chance to fill any gaps in their national insurance record and potentially increase their future pension.
Do you have a financial story to share? Martin encourages people to get in touch by emailing his team at email.
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