Martin Lewis has shared his expert advice following the latest hike in the energy price cap, which was confirmed earlier today (Friday, August 23).
Households are now bracing for an average increase of £149 on their annual bills starting from October.
Ofgem has confirmed that the price cap for a typical household paying by direct debit could jump to £1,717 from October, up £149 from the current cap of £1,568.
This change amounts to about a 10% increase – which means the average monthly bill will go up by an extra £12, according to Ofgem’s calculations.
Martin Lewis broke his summer social media silence to respond to Ofgem’s announcement on X, urging consumers to stay informed – and to save by switching.
‘You need to look and see what tariffs are available out there,’ he said.
‘The current cheapest fix on the market is 7% cheaper than the 1st October price cap.’
His statement additionally said: ‘The cheapest year-long fixes on the market right now are about 7% less than the new October Price Cap, but they mightn’t be around long.
‘That looks a good deal, as it’s currently predicted once rates go up they won’t come down. Don’t just jump on any fix though – if you’re going to lock in you want to grab the cheapest for your use and location, so use a whole-of-market comparison, like MSE’s Cheap Energy Club, and find out who will let you fix for less.’
Even though your new fixed rate tarriff could mean you’re paying more than the current cap – it’ll still be far less than what you could end up paying come October.
Martin urged against people rushing into just any fix. For those considering a fixed deal, Martin said consumers should consider personal usage and location.
He also suggested certain providers that could help ease the price hike. ‘Deals like E.on Next’s Pledge, or EDF Ensure are effectively discounted trackers, where they move with the price cap, but the unit rates or standing charges are guaranteed to be lower,’ he wrote.
‘And for more sophisticated energy users the Octopus Agile and Tracker tariffs where prices move rapidly can be far cheaper.’
The MoneySavingExpert.com founder also noted that most of this new increase is down to the unit rate rather than the standing charge, which means those with higher energy usage – particularly gas – could see their costs go up by more than the 10% average.
Martin’s latest advice comes after MSE shared a pension hack this week, dubbed ‘the most lucrative thing you can do with your money’.
According to MSE’s latest newsletter, buying back missing years in your national insurance record could boost your pension.
Your state pension is determined by how many years you have paid national insurance (NI). As a general rule, you need about 35 years to get the maximum state pension, which is currently set at £221.20 a week.
Some people may have gaps in their NI record, but you’ve now got until April 5 2025 to buy back any missing national insurance years from 2006 to 2016.
This means that if you’re aged between 40 to 73, you could plug those gaps, and boost your future pension.
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