Martin Lewis explains what Liz Truss freezing energy bills actually means

Martin Lewis has explained, from his perspective, what freezing energy bills will actually mean.

Amid the cost of living crisis, UK prime minister Liz Truss will set out proposals to Parliament on energy, either on Thursday or Friday this week, new Health Secretary and Deputy prime minister Therese Coffey has confirmed.

Amongst the rumoured proposals could potentially be the act of freezing energy bills as her first move as prime minister.

And in preparation for such an event, Money Saving Expert Lewis has made some 'educated guesses' on what some of the potential effects of that will be.

He explained in a post on the Money Saving Expert website that 'millions desperately need help' and that 'freezing (or near freezing) the price cap now would help substantially'.

Lewis said: "I have longly and strongly been calling for further Government intervention.

"Yet whenever asked, I have been careful to be agnostic over the method used to help – as my prime concern has been trying to ensure there was a will to do something more.

"Freezing the price cap at its current level certainly fulfils that brief, so I absolutely would welcome it.

"It would go a decent way to mitigate further short-term damage, and the risk to health and mental health, causing a sigh of relief for many. 

"Yet we must accept doing it this way may turn out to be expensive for the public finances, and is certainly far from targeted."

He added: "The big benefit, and problem, of this is (almost) everyone gets it. In past conversations with Rishi Sunak when he was Chancellor, he recognised both practically and politically that while you had to focus help to the poorest and most vulnerable, in doing so, some on low to middle incomes would feel they had unfairly missed out.

"That is even more so now, with cost rises so large, many middle earners will find it hard to manage. By (near) freezing the cap, you spread the help net very wide.

"However that means the benefit goes to every bill payer, including wealthy people (yes, like me).

"And those who gain the most from it in cash terms will be those with the highest bills (many, though not all, will be at higher income levels), so clearly it isn't targeted at helping those who need it most."

Lewis also noted: "If we freeze now, we have already seen the price cap rise 50 percent, so we're freezing at a high level (and higher than some other countries have). 

"It would mean this winter's bills would be running at roughly at £2,000/yr (or £2,100 if latest rumours are right) for typical usage compared to last winter's £1,300/yr.

"That is not an insubstantial difference and is a struggle for many."

If you've been affected by any of the issues in this story, you can find more information about where to get help from Turn2Us via their website.