Martin Lewis has issued a warning to all energy bill paying Brits after the cost of living just got worse for millions in the UK.
Issuing the alert this morning (25 February), it came after energy regulator Ofgem increased bills for Brits once again after raising the energy price cap across the country.
But what does this mean in the real world? And more importantly, how does it impact your back account directly (if it does, at all)?
Taking to X (formerly known as Twitter) after the announcement, Lewis broke down what the changes mean for the ordinary person living in the United Kingdom.
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Energy price cap explained
The energy price cap is the total amount an energy supplier can charge you every year for using gas and electric in your home.
Announced today, Ofgem put the price cap at £1,849 a year. This is up from £1,738; a 6.4 percent increase. The new cap will be from 1 April, 2025 and set to be reviewed in a quarter of a year's time.
It is reported that the rise will equate to £111 for an average household per year. In a quarter to quarter time frame, it'll be around £9.25 a month in the next three months.
This is 9.4 percent, or £159 higher, than this time last year. But importantly it is £531, or 22 percent lower, than at the height of the energy crisis at the start of 2023.
Ofgem chief executive Jonathan Brearley said: “We know that no price rise is ever welcome, and that the cost of energy remains a huge challenge for many households.
“But our reliance on international gas markets leads to volatile wholesale prices, and continues to drive up bills, which is why it’s more important than ever that we’re driving forward investment in a cleaner, homegrown system.
“Energy debts that began during the energy crisis have reached record levels and without intervention will continue to grow. This puts families under huge stress and increases costs for all customers. We’re developing plans that could give households with unmanageable debt the clean slate they need to move forward.”
What has Martin Lewis said?
With a lot of people paying their bills via direct debit, Lewis has explained how people will be impacted by the changes.
"For every £100 you pay for energy now, from April people will typically pay roughly £106.40," Lewis said in a lengthy post on X.
"Yet in reality as the daily standing charge is dropping, some lower users (below £100 a month) will see only small rises. But those who use a lot (above £200 month) will likely see seven to 10 percent increases."
Will the energy price cap impact me?
Lewis explains that the energy price cap 'likely' will apply to you if you haven't fixed your energy bills for the current time.
Fixing bills is where you agree to pay a fixed rate for a specific period of time, usually one to two years as you try and predict the energy market.
"If you don't know assume you, like two third of homes probably are," Lewis says.
He stresses to fix as soon as you can, explaining: "The cheapest year-long standalone fixes right now are about four percent LESS than the current cap, never mind once it rises in April. So if you get a good fix now you lock in at a cheaper rate for a year, get price certainty, save instantly and save relatively more once we get to April."
Topics: Martin Lewis, UK News, Money, Cost of Living
Tom Earnshaw