As chillier conditions begin to take hold, households across the nation are starting to fret about cranking up the heating more frequently, with concerns over soaring energy costs weighing heavily on minds. Nevertheless, if you're seeking guidance to enhance your savings and slash your energy expenses, fret no more, as Martin Lewis has revealed some vital expert counsel.
Should you wish to combat "rip off" bills this winter, the Money Saving Expert insisted you must consider taking action immediately to make an impact on your finances. Martin recently discussed the subject on the Martin Lewis Podcast, with a segment later posted on TikTok to assist people in maximising their money.
It's information many households will be keen to understand as they'll be utilising their heating far more throughout the coming months. This follows Martin resolving the argument over whether you should keep your heating running throughout the day.
Martin explained: "The only way you're going to be able to save on your energy bills right now is if you take action. We now know that on October 1 the energy price cap is going to rise by 2%.
"That means we know what you're going to pay on the price cap until the end of this year, and it isn't good. In fact, it's a pants cap. Two thirds of homes in England, Scotland and Wales are on the price cap. Basically, that's you, if you're on your firm's standard tariff."
Martin added: "If you're not on a fix, if you're not on a special deal, you're on the bog standard 'do nothing' tariff, you're on the energy price cap, and it isn't good. The cheapest fix is where you lock in a rate - you know what you're going to pay for the next year - [and it's] 13% cheaper than the October price cap. So you know you can save instantly, and will save until at least December.
"Now these are the predications for after December on the price cap, and they do change. It is a bit crystal ball gazing. It'll drop 2% in January, so putting it back to what you're paying right now, but then it's predicted to go up by about 5% in April and up again next July. If those predictions are right, you will save massively by being on the cheapest fix, so don't sit on your hands, and just let the price move up in October."
His guidance to consumers is to abandon the "pants cap," as he describes it, and switch to a comprehensive market comparison service to secure the most affordable fixed rate available. Martin emphasised it's crucial that you take this step, as tariffs will differ based on your location and energy consumption levels.
This represents guidance that "should work for virtually anybody", the expert revealed, unless you possess an "old-school", non-smart, prepayment meter. This encompasses everything you need to understand about navigating the upcoming autumn and winter periods.
Since the guidance was posted, more than 14,000 people have watched the video and hundreds have contributed comments. Many expressed gratitude to Martin for the incredibly useful tip.
One individual commented: "I'm already on £400 a month in winter. I've been on £140 in summer, and not had my gas on once."
Another responded: "I hope there's something we can think of to stop these cap rises." A third added: "I love Martin - he's always stressed for us."
Meanwhile, a fourth also remarked: "I'm so glad I took Martin's advice earlier this year, and fixed my bill for 12 months."
If you're uncertain what the price cap entails, it essentially restricts the maximum unit rates Ofgem (the energy regulator for Great Britain) permits suppliers to charge for gas and electricity. It serves to shield customers on standard variable tariffs (default tariffs) from steep prices by capping their unit and standing charges.
The cap undergoes review and adjustment quarterly, with these charges coming into effect on January 1, April 1, July 1 and October 1 each year. It is calculated on typical household energy usage, but does not establish a fixed total bill, as the final amount will depend on how much energy you actually use.
