Martin Lewis gives verdict on Liz Truss’ energy price freeze plans
MARTIN Lewis has welcomed government plans to freeze the energy price cap to help households with the cost of living.
However, the consumer champion warned that millions of customers could still face paying higher bills.
Martin Lewis’ latest blog post, published on MoneySavingExpert.com, welcomed imminent government intervention to help households with spiralling energy bills.
Martin said: “Freezing the price cap would go a decent way to mitigate further short-term damage, and the risk to health and mental health, causing a sigh of relief for many.”
The new Conservative Party leader and Prime Minster, Liz Truss, is expected to announce a freeze on the energy price cap later this week.
The Sun previously revealed that bills will be capped for at least four months, with a massive taxpayer bailout.
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It will likely see the average household bill capped at £2,500 till at least January.
The £400 energy bill rebate is expected to be included within the calculation of the new frozen price cap.
This means a typical household that pays by their energy bills by direct debit will be charged £2,100 over the next year.
However, the exact level that bills will be frozen at, is yet to be confirmed.
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Without government support, the the current price cap for those who pay by direct debit will rise on October 1 to £3,549 – a rise of 80%.
But Martin Lewis still fears that millions of households could miss out on cheaper rates even if prices are to be capped.
He said: “Up to 15% of households are on fixed tariffs, many have locked in at higher prices, as they are risk averse and wanted to protect their bills. So what happens? Will they be put on the price freeze?”
These questions remain unanswered and Martin has asked the government to clarify their position on those who’ve recently taken out a fixed energy tariff as a priority.
The consumer champion said that those who’ve fixed within the last two weeks should urgently check to see if they could cancel the tariff switch penalty free.
Most energy customers get a 14 day cooling off period when they first take on a new energy tariff.
If they decide they no longer want to switch to a new tariff within this period customers can usually cancel penalty free.
What energy bill help is available?
From September 20, over six million people with disabilities are set to receive £150 to help with the rising cost of living.
From October the first, all UK households are set to receive the £400 energy bills rebate.
The payment will be made up of six discounts between October and March next year.
Households will receive a £66 energy bill discount in October and November and a discount worth £67 in December, January, February and March.
We’ve listed how the leading energy suppliers plan to pay households the discount and are waiting on others to respond.
The way you’ll be paid will depend on how you pay for your energy.
Check with your supplier to confirm how you’ll receive the cash.
In November, a £300 one-off “Pensioner Cost of Living Payment” will be paid out to eight million households.
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Energy suppliers also offer support for those who are struggling to pay their bills.
There are plenty of energy grants and schemes open to help you out if you’re struggling.