'A fiscal punch in the face!' Martin Lewis warns Britons face devastation in weeks

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The economist, once voted the most trusted man in Britain, said measures put in place by Chancellor Rishi Sunak to help mitigate the increases were “clearly not enough”.

He warned households faced a £700 a year rise in energy bills from April, with costs set to soar again later in the year.

Mr Lewis told MPs on the business, energy and industrial strategy committee: “About a year ago, someone on typical use – and of course if you use more your bills are higher and if you use less your bills are lower – you would have been paying £800 on the cheapest fix.

“Right now, there’s nothing cheaper than the price cap currently which for someone with typical use is £1,277.

“On April 1, people are going to feel a fiscal punch in the face when that goes up for someone on typical use to £1,971. That’s a £700 rise.

“On October 1, the price cap then is based on an assessment period of energy prices between February 1 and the end of July.

“We are seven weeks through that 26 week period.

“Those seven weeks have included the highest ever rates in history, a completely unprecedented level both because of the structural changes that have been going on in the market because of Covid and because of the dreadful situation in Ukraine.”

Mr Lewis said analysts were predicting energy bills will hit as high as £2,500 in October, a £1,300 increase in just over a year.

Criticising Mr Sunak’s £250 energy relief package, he said the Government must do more to help those struggling with the cost of living crisis.

He added: “For those people on lower to middle incomes a £350 worth of help – of which £200 is questionable – to cover a £1,300 rise, you don’t need to be the Money Saving Expert to work out, no, that is not enough.”

More to follow…



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