Martin Lewis has once again come to the rescue of households across the UK, saving one fan an impressive £454 with a simple five-minute energy bill switch. As energy prices continue to rise, the financial expert advised consumers to take action before the upcoming price cap increase on April 1, which will see the average household energy bill rise to £1,849 per year.
The Energy Price Cap Hike
The UK’s energy price cap, set by Ofgem, regulates the maximum amount energy suppliers can charge per unit of gas and electricity. However, from April 1, this cap will rise by 6.4%, translating to an increase of approximately £9 per month for a typical household. This marks the third consecutive hike, with experts attributing it to ongoing geopolitical tensions and disruptions in global energy markets.
Since its introduction in 2019, the price cap has aimed to protect consumers from excessive charges. Yet, as wholesale gas prices remain volatile, UK households have faced significant increases, with bills now standing nearly £600 higher than they were three years ago.
Martin Lewis’ Money-Saving Tip
On the latest episode of The Martin Lewis Money Show, the financial guru urged viewers to consider switching to a fixed-rate energy tariff to avoid the full impact of the price cap hike.
“You want to get off the price cap because fixed rates are so much cheaper,” Lewis explained. “If you fix now, you get peace of mind and certainty. Some fixed rates are currently up to 5% lower than the new price cap, making them a valuable option.”
Lewis also reassured those concerned about needing a smart meter, stating: “Most of the best fixed deals don’t require a smart meter, so don’t let that put you off.”
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How One Viewer Saved £454
During the show, an audience member shared how they had saved £454 annually by following Lewis’ advice and switching to a fixed tariff. While many price comparison tools might show minimal immediate savings, Lewis highlighted that these comparisons are based on the current cap rather than the higher April rate.
“The biggest message tonight is that when you compare now, the savings might look small, but remember, the price cap is going up 6.4%,” he explained. “If it says £20 or £30 now, in reality, you’re probably saving £100 or more.”
What This Means for UK Households
With the energy price cap continuing to rise, millions of households are searching for ways to cut costs. The government has acknowledged the financial strain, stating: “International gas prices have risen, bringing British energy bills up with them. This is a Europe-wide issue, and wholesale gas prices covered by this price cap period are around 15% higher than before.”
While fixed-rate tariffs may not be suitable for everyone, Lewis’ advice serves as a crucial reminder that proactive financial decisions can lead to substantial savings. For those who have not yet explored their options, checking comparison sites and considering a switch before April 1 could mean keeping more money in their pockets.
Final Thoughts
Martin Lewis continues to be a trusted voice in personal finance, providing practical, actionable advice to help households navigate rising costs. With energy bills set to increase yet again, his latest tip offers a timely solution for those looking to mitigate the impact of price hikes.
As always, consumers are encouraged to conduct their own research, compare tariffs, and choose the best option for their individual circumstances. For many, a five-minute switch could lead to hundreds of pounds in savings—proof that small changes can make a big difference.
