Martin Lewis shares ‘urgent’ steps to save £100s before energy price hike

According to Martin Lewis, 80% of households in England, Scotland and Wales currently overpay for energy — and in the coming months, it’s only going to get worse. Ofgem just announced the price cap will be going up by 6.4% in April – following a 1% rise in January – with the energy regulator blaming an increase in the wholesale price of oil and gas.

That means the minimum bill for someone with typical dual-fuel use paying by Direct Debit will go up by over £100 a year, which Ofgem chief executive Jonathan Brearley will pose ‘a huge challenge for many households.’. But thankfully, there is a way to avoid the worst of the hike, with Martin claiming it could result in a typical annual saving of £200.

And the personal finance guru’s advice is simple: ‘Compare to find your cheapest fix and lock in a rate now.’. On the Money Saving Expert (MSE) newsletter, he explained that ‘a fix means the rate you pay for energy can’t change (though use more and you’ll pay more).’.

Martin also added on X: ‘The cheapest year-long standalone fixes right now are about 4% less than the current cap, never mind once it rises in April, so if you get a good fix now you lock in at a cheaper rate for a year, get price certainty, save instantly and save relatively more once we get to April.’.

The exact fixed rate tariff that’s best for you will depend on your region and how much energy you use, so put your details into a comparison tool (like MSE’s Cheap Energy Club) to see more personalised options. Regardless of which deal you go with though, it’s vital you act ‘urgently’.

The new price cap will come into play on April 1 and will last for three months, so it definitely has to be before then. However, Martin also warns that sine deals are being snapped up fast, so ‘getting it done ASAP is safest.’. If you’re on one of the following, what you pay is determined by the price cap, which Martin says means you’re ‘likely overpaying and should sort now’.

Alongside fixed rate tariffs, it’s worth looking into specialist alternatives that could save you cash. EDF’s new Simply Tracker Extra tariff, for example, slashes £100 a year off the standing charge, and could be good for those with lower usage (roughly under £135 per month).

Alternatively, there are electric vehicle tariffs which could help EV drivers keep costs down, and rapid price-change options offering lower prices outside of peak periods for those who are able to shift their daily usage routine. If you’re still struggling to pay, Martin recommends speaking to your energy provider to see how they can help.

‘Be polite and straight with it, and make sure you explain if you’re vulnerable,’ he says. They may be able to put you forward for a hardship and debt grant, or work with you to negotiate a payment plan you can afford – everything’s decided on a case-by-case basis.

Life admin apps to save the day? Brits rely on seven pocket pals for budget control. Under Ofgem rules, suppliers are obligated to help struggling customers, so get in touch with yours as soon as possible if you’re worried about your ability to pay. Amy Knight, personal finance expert at the financial comparison website NerdWallet UK, told Metro: ‘While cutting down on energy use can help save money on bills, this isn’t always an option. Instead, focus on getting more value from the money you spend heating your home.’.

Here are her top tips to keep fuel bills low this winter:. If you’re several hundreds or even thousands in credit, your direct debit is probably set too high. You can ask for a refund of most of the balance and adjust your direct debit to be lower. Be aware though, it is normal to be in credit this time of year because most households use less energy in the summer versus the winter when we have the heating on.

Heating water uses a lot of energy, so you can turn down the flow temperature of your boiler to shave a little off your bills. As long as the water from your hot tap is comfortable to have a bath in, you don’t need to set it any hotter. You can do this manually or you may be able to ask a heating engineer to fit a device called a ‘weather compensator’.

Keep radiators uncovered to maximise the benefit when they’re on. If you have long curtains covering your radiators, leave them open to make sure the warm air circulates into the room, not out of the window. When shopping for a new appliance such as a washing machine or fridge, look at the efficiency ratings. If your budget can stretch to A or B-rated white goods, these can help lower your energy usage long term.

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