Martin Lewis’ Money Show Live, the personal finance guru, has highlighted the potential for major savings on household energy bills. In just five minutes, Martin Lewis helped a family dramatically cut their annual bill by £454—a welcome relief as Ofgem announces a sharp 6.4% increase in the energy price cap beginning in April.
With this hike, the average yearly cost for dual fuel households paying by direct debit is expected to soar from £1,738 to £1,849, although individual expenses will vary based on actual energy consumption. The cap simply sets a maximum for unit rates and standing charge costs.
In response to the looming rise, Martin Lewis has sounded a clarion call to UK residents to ditch the “pants cap” in favour of more economical fixed-rate tariffs that currently undervalue the existing January cap, and will likely differ enormously from the April spike. By fixing their rates, Britons can enjoy a sense of security and stability, with Lewis affirming: “You want to get off of the price cap because the fixed rates are so much cheaper than the energy price cap. The first thing is if you fix, you get peace of mind and you get certainty.”
Moreover, Lewis dispelled concerns about mandatory smart meters for some of the best fixed plans, encouraging viewers to continue scouting for superior offers without hesitation. Highlighted on last night’s episode was a crucial insight—many consumers may find less hopeful results when running their energy bill comparisons, reports the Mirror.
“The biggest message tonight though is you’re probably going to do a comparison and it is probably going to tell you that you won’t save much. That is because the saving is compared to the current price cap, that price cap is going up 6.4% in April. So if it says £20 or £30 in reality you are probably talking £100.”
During an advice segment on energy concerns, Martin addressed a viewer’s plight, saying: “We are unfortunately on the price cap – the pants cap – how do we go about fixing it?” Quickly setting up a live energy comparison with his Money Saving Expert team, Martin revealed significant potential savings for households bogged down by crippling tariffs.
A viewer exclusively using electricity was delighted to find out from the MSE team’s comparison that he could save an impressive £454 in contrast to his current rates. His feedback on the experience was overwhelmingly positive: “It was super simple – it took about five minutes.”
Expanding on this, Martin added some clarification for the audience, explaining: “If you’re electricity only, the cheapest fix is about 11 to 12% cheaper than the current price cap, whereas if you’re on dual fuel, it’s only 6% cheaper.”
The conversation highlighted how crucial cost-cutting steps could be in the face of soaring energy bills.
