On This Morning today, Martin Lewis issued a desperate warning about the country’s ‘catastrophic situation’.
The Money Saving Expert Founder shared his October energy price cap rise prediction and said it would rise once again in January 2023. The energy price cap limits the rate a supplier can charge customers for their default tariffs.
Speaking on the show to Dermot O’Leary and Alison Hammond, Martin said he couldn’t sugarcoat England’s current circumstances and the likely energy price cap increase.
Martin Lewis on This Morning
He said: “We are in a catastrophic situation. I am raising alarm bells as much as I can.
“It is a desperate situation that we will not have a prime minister in place until the 5th September.
“In my view that is too late to deal with this issue as we are going to know what is happening with the price gap by the end of august.
“The latest prediction for October is 65 per cent on where we are now.”
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“Oh gosh,” Alison replied.
Martin put the energy price rise into perspective for This Morning viewers.
He said: “The October price cap for someone of typical use at £3244 is more than a third of the full new state pension. This is more than a third of your entire year’s pension. This is unaffordable.”
Energy rebate scheme
Martin then explained the energy rebate scheme announced by the government to support the thousands who will be affected by the rising energy prices.
He said more help is needed as this scheme is no longer proportionate to the predicted autumn energy price cap rise.
He said: “How will the £400 energy rebate work, it means everybody’s bill will be reduced by £400 in October. So what you’d expect to see in October is your bill will be cut but, I just want to put this in perspective.
“In May, we thought somebody on typical use would be £4,800. This means the £400 help people will be given will have just been swallowed up in the prediction for the price cap in October. More help is needed.
“I’m genuinely worried about the number of lives that will be lost in this country.”
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Martin added: “The £650 for those on benefits and the £150 for people on disabilities… The reason for giving that £400 is so you can target those on the lowest incomes. But, those on higher incomes are like ‘How can I afford this?’ too.
“Rishi [Sunak] is leaving out a huge demographic of people that still need help.”
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