Martin Lewis gives not great warning ahead of energy | UK News

Martin Lewis has given advice on how shoppers can defend themselves from surging energy prices prompted by the conflict in Iran. It was announced today (Wednesday, May 20) that inflation had fallen to its lowest stage in more than a yr in some stunning good news for Brits.

Consumer Prices Index inflation fell to 2.8 per cent in April, down from 3.3 per cent in March as a drop in energy costs offset hovering fuel prices.

A mixture of Ofgem decreasing its energy price cap by 7 per cent for the average family utilizing both electrical energy and gasoline, and Government measures to cut back payments, is believed to be behind the drop.

However, it got here with a warning that the price cap is probably going to rise when it’s up to date in July, as the US-Israeli strikes on Iran have seen energy prices skyrocket.

Speaking on Good Morning Britain about the scenario, Mr Lewis said: “The assessment date for the energy price cap closed. The July price cap closed on Monday and it’s looking like it will go up 13 per cent for the July to October price cap.

“The real query is what occurs in October and what occurs in January, and presently that’s wanting to have costs at the same stage, and that’s what will harm issues.

“Now, if the Middle East crisis were to end soon, we might see those prices not be as high. They’ll still be higher than they are right now, I would think, but not be as high.

“The options aren’t great, but you may get onto comparability websites proper now and get a fixed charge that’s the same charge as the current price cap. So, you may lock in right here, and costs are going to go up 13 per cent and then in all probability keep someplace out right here for the next yr.

“So, if you can lock in, while you won’t save much right now if you’re fixing at about the current price cap, from July you will start to save, and you can act to prevent those price rises. Don’t stick with your own company because there are very few cheap fixes out there. You need to go whole of market on a comparison site.”

Chancellor Rachel Reeves is predicted to define a bundle of cost-of-living help this week in response, with Sir Keir Starmer confirming today that the 5p fuel obligation increase has been postponed for the remainder of the yr.

Ms Reeves said: “The war in Iran is not our war but one we will need to respond to, and the decisions I took in the budget last year have kept inflation down as we deal with global instability.

“We have the right economic plan, and to change course now would risk our economic stability and leave working people worse off.

“We have already taken £117 off energy bills, frozen rail fares, and lifted the two-child limit, and over today and tomorrow, I’ll set out the next phase of how we will support UK households.”

Speaking in response to the expected 13 per cent rise forecast for July to October, Mr Lewis continued: “Just to mitigate that slightly, it’s important to say that (the price cap) lasts three months and it (July to October) is the lowest use period of the year.

“We use about 15 per cent of our energy in that quarter of a yr. So, in sensible phrases, for somebody who pays £150 a month on energy, the overall increase due to that energy price cap rise will probably be about 30 to 40 quid. I just need to, , say it is not great, but it is not catastrophic.”