Martin Lewis warns we’ll feel ‘no real benefit’ of energy prices falling

The moneysaving expert said bills were “too expensive” and said the Government has been “asleep at the wheel” for years as he called for sweeping changes to the way the energy market is structured

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Martin Lewis: People won’t feel benefit of falling wholesale energy prices

Martin Lewis has issued a bleak warning about energy bills in the coming winter – saying that households “aren’t going to be feeling any real benefit” of price drops.

He accused the Government and the energy market of being “asleep at the wheel” for years and said the end of the energy price guarantee will have a devastating impact on billpayers.

The moneysaving expert said energy bills are “too expensive” and said he had “monumental questions” about the steps being taken to improve the situation for millions of households.

Mr Lewis said next winter he expects most people to be facing bills similar to those last time around, despite prices falling, as support is dropping off

He challenged Tory cabinet member Therese Coffey to say what support would be available for those not eligible for targeted support.

Martin Lewis says bills next winter will be similar to the one just gone (

Image:

BBC)

Speaking on the BBC’s Sunday with Laura Kuenssberg, he said: “In practical terms what you pay from July will drop by somewhere between 15 and 20%, we’re pretty sure it’s in that ballpark.

“Then the next price cap is in October. The current prediction – and the further out you go it’s more crystal ball gazing it is – is that it will drop a little bit more and then go up a little bit in January but still be in roughly the same amount it is now.

“It is an improvement, it’s not the biggest improvement, it’s worth remembering in April everybody lost the £66-£67 winter bills support.”

And he continued: “In practical terms people aren’t going to be feeling any real benefit, they’re going to be paying the same that they were over winter and next winter is going to be the same as just gone – which is over double what we always thought.”

He said he doesn’t expect standing charges to drop – meaning people will still pay around £300 for having gas and electricity, and said a drop in the unit rate won’t address a “hideous moral hazard” meaning the less people use, the less they save.

Mr Lewis stated: “We’ve monumental questions about consumer energy bills coming forward – they’re too expensive, they’re badly structured, there’s no competition in the marketplace.

Mr Lewis challenged cabinet member Therese Coffey on support with energy bills (

Image:

BBC)

“Clearly the people who have been in charge have been asleep at the wheel for the last few years.”

Speaking to Ms Coffey, he said he was concerned for those who face having to shell out £2,000 more than they normally would.

He said: “There’s support for people on the lowest incomes, the important thing that will happen in July that we haven’t seen since last October is that the energy price guarantee ends, which means the state subsidy of everyone’s bills is ending.

“(It’s) nine months earlier than it was predicted to, the expenditure on it is tens of billions of pounds less than than we thought.

“There is money to help those on middle and lower incomes and it’s the people just above the threshold who don’t get the cost of living help for whom £2,000 a year energy bills are unaffordable.”

He then asked Environment Secretary Therese Coffey if any support for these people is on its way.

She responded: The Chancellor set out our plans several months ago on what was happening there and I’m conscious that there’s only a limited amount of support going to every billpayer.

“But I think the critical thing that people will be expecting from the Government is getting that electricity pipeline flowing within our own country.”

Ms Kuenssberg then pointed out that the cabinet member had opposed such a pipeline in her own constituency.

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