Martin Lewis warns of catastrophe as energy bills hit £3,500 and says ‘lives will be lost’
Martin Lewis #MartinLewis
MoneySavingExpert guru Martin Lewis branded the energy price gap rise by over 80%, announced by Ofgem, as hideous with millions expected to fall into hardship
Martin Lewis says ‘lives will be lost’ due to rising energy bill
Martin Lewis has warned of a catastrophe with the average energy bill set to hit over £3,500, claiming “lives will be lost”.
The MoneySavingExpert guru branded the latest price cap increase “hideous” after government regulator Ofgem today confirmed an 80.06% rise.
It’s expected to push millions of people in severe hardship.
The cap will come into effect for around 24 million households in England, Scotland and Wales on default energy tariffs on October 1, and will remain in place until December 31, when it will be adjusted again.
The 4.5 million pre-payment meter customers, who are often the most vulnerable and already in fuel poverty, will see an even more punishing increase, with their average annual bill set to go up to £3,608.
In April the price cap skyrocketed by 54% from £1,277 to £1,971 per year for people who pay for their energy via direct debit.
Are you struggling with the rise? Let us know at webnews@mirror.co.uk
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Martin Lewis said the UK is heading for catastrophe(PA)
The £693 increase was driven by a record rise in global gas prices over the previous six months and a quadrupling of wholesale prices in the previous 12 months.
Mr Lewis, speaking on the Today programme on Radio 4 this morning said: “I’ve been accused of catastrophising.
“The reason I’ve been catastrophising is because this is a catastrophe.
“It’s staggering we’ve allowed this announcement to be made…and still no help has been announced. It’s catastrophic.
Ofgem chief executive Jonathan Brearley in the Commons(PA)
“It’s not good Government, it’s not good politics.”
Speaking to Good Morning Britain he went on to say: “While this is shocking, it is far from surprising and we need urgent further government intervention.”
He said the £3,500 quoted is the average for someone with “typical usage”, adding: “Of course, most people don’t have typical usage.
“That means there is no maximum amount you can pay for gas and electric.”
He said you could “easily” be paying £5,000 to £10,000 a year if you have heavy usage.
Martin Lewis outlines rise in average UK household energy bills
“I worry terribly for some of those who have disabled children or disabilities themselves who need lots of electrical equipment to keep their houses warm because of medical conditions.
“There’s also a price cap for pre-payment, there’s also a price cap for those paying in receipt of bills – those caps are higher and I’m afraid to say it doesn’t end there.”
Mr Lewis went on to say, looking at the “totality” between October and March 2023, “it’s going to be, on current predictions, £5,400.
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“It’s devastating for many vulnerable people.”
He said if the current cap was frozen and the government subsidised it, while it’s expensive, it is far more manageable.
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Ofgem’s chief executive Jonathan Brearley also warned of the hardship to come this winter and urged the incoming Prime Minister and new Cabinet “to provide an additional and urgent response to continued surging energy prices”.
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The regulator said the increase reflected the continued rise in global wholesale gas prices, which began to surge as the world unlocked from the Covid pandemic, and had been driven still higher to record levels by Russia slowly switching off gas supplies to Europe.
Chancellor Nadhim Zahawi said the increase in the energy price cap would cause “stress and anxiety” for people, but that the Government was working to develop more options to support households.
He blamed Vladimir Putin for driving up energy prices “in revenge for our support of Ukraine”.