Martin Lewis says there are fixed deals available now that are cheaper than the current price cap (Image: ITV)
Martin Lewis is urging UK households to make a “no brainer” change from 12pm today to save money on their energy bills.
says households that are still on a standard variable tariff should switch to a fixed tariff as soon as possible, as bills are set to rise from April.
has today announced a third consecutive with a 6.4% rise from April 1.
The increase will see the average bill for households in England, Wales and Scotland on a standard variable tariff go up from the current £1,738 per year to £1,849.
The hike equates to a £111 annual increase, or around £9.25 per month over the three months of the price cap. This is 9.4% – or £159 – higher than last year, which Ofgem says is due to a recent spike in wholesale energy prices.
The price cap sets the maximum rate per unit and standing charge that customers can be charged by suppliers for their energy use.
But Martin Lewis says there are now fixed deals that are cheaper than the current price cap and is urging households to switch and fix at a lower rate to save money before the new cap takes effect.
Speaking on Radio 4’s Today programme, Lewis said the cheapest fixed deals on the market right now are around 4% cheaper compared to today’s price cap, which would increase to around 10% less once the new cap kicks in on April 1.
He suggested that households wait until around lunchtime on Tuesday (February 25)—so from about 12pm onwards—to check for deals and use price comparison websites that cover the whole market, as some cost-effective deals were due to be launched this morning.
Don’t miss…
Lewis said: “Based on the predictions at the moment, once it goes up in April it ain’t coming back down to these levels for the next year. So, as you can fix currently at cheaper than the current cap, never mind before it goes up, it is a no-brainer to fix.
“And remember that when you do a comparison, remember that the savings you’re given on the cheapest fix are compared to the current price cap.
“So they won’t look big, they might say £30, £40 a year. But remember it’s going up by 6% so if you do nothing your price would rise whereas if you fix your price would drop.”