Martin Lewis gives bleak energy cost warning with average bill rising £94 a year

Martin Lewis said it will impact 20 million households across England, Scotland and Wales (Picture: ITV)

Martin Lewis has said 20 million households will pay more for their energy bills this January than any winter before.

The energy price cap will increase by 5% in January which means energy bills will be more expensive for households in England, Scotland and Wales, according to Mr Lewis.

It will come as a worry for Brits up and down the UK who are still struggling with the cost of living crisis.

He tweeted: ‘Energy price cap is UP 5% ON 1 Jan (so every £100 you pay now will be £105 then) making energy more expensive for 20m+ homes in Eng, scot and wales.’

Mr Lewis went on to say that households will pay more this year because last winter every home got a £66 monthly government reduction.

While inflation dropped this October, this ignores the missing government support which means in reality people will pay more for their energy bills, according to Mr Lewis.

He continued: ‘In other words a typical home pays £28/mth more this winter, or factor in seasonal adjustments due to high winter use and as a back of envelope calculation it is more like £45more.’

The lack of government support means households will suffer more this winter (Credits: Ken McKay/ITV/Shutterstock)

The average household energy bill will rise by £94 a year from January after Ofgem increased its price cap in response to rising wholesale prices.

Ofgem announced its latest price cap this morning alongside energy consultancy Cornwall Insight.

More: Trending

They have predicted it will increase from the current £1,834 for a typical dual fuel household to £1,931, a 5% jump to take effect from January 1.

It suggests the typical bill will then fall to £1,853 from the start of April, but will not drop below today’s level until July next year.

But in better news Cornwall Insight said recent mild weather was helping to bring down gas prices which could help reduce bills next year.

Dr Craig Lowrey, principal consultant at Cornwall Insight, said: ‘An unstable wholesale energy market, coupled with the UK’s reliance on energy imports, makes it inevitable that energy bills will rise from current levels.

‘This leaves households facing yet another winter with bills hundreds of pounds higher than pre-pandemic levels, and affordable fixed deals few and far between.’

There was no mention in the Chancellor’s budget about help to offset household energy bills (Picture: PA)

During yesterday’s autumn statement there was no mention of any further help to offset household energy bills.

Adam Scorer, chief executive of fuel poverty charity National Energy Action, said: ‘The gaps in this autumn statement are devastating, especially for the poorest households.

‘An ‘average household’ is now paying £800 more per year to heat and power their homes since the start of the energy crisis.

‘With a VAT windfall from higher energy bills and underspent money that was allocated to help vulnerable people keep warm last year, it is clear that Chancellor Jeremy Hunt had the headroom in the finances to act, but he has done nothing to help the most vulnerable people keep warm and safe at home.’

Get in touch with our news team by emailing us at webnews@metro.co.uk.

For more stories like this, check our news page.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.