Martin Lewis urged people concerned about proposed increases in fuel bills to wait a “day or two” before talking to utilities.
The savings expert featured on This Morning today noted that new Prime Minister Liz Truss is expected to make a statement regarding the accounts in the coming days.
Liz Truss promised to stop raising her energy bills in her first PMQ shootout with Keir Starmer today, but warned that without economic reform it would be just a “band-aid”.
Money-saving expert Martin Lewis (pictured) appeared on This Morning today and answered people’s questions about finances, especially energy bills.
This morning’s presenters Holly Willoughby and Philip Schofield spoke with financial expert about the current financial concerns of some people.
Answering a question from viewers about today’s show, Martin said he thought there might be an announcement tomorrow night.
He believes this may be “the most radical change in energy policy, not just by the Boris Johnson administration, but by far the most radical change from what the Liz Trust claimed during the election campaign”.
The expert noted that although he could not hear from official sources, “other journalists have suggestions on which to base their opinions.”
“What we will likely hear tomorrow is that the maximum price will likely be frozen, which on 1 October will clearly increase by 80% from £711 to £3,549 per year.
“Last I heard they will freeze it for £2500 for a regular user, but people will still get a total of £2,100 from the £400 discount promised this winter.
“So what does that mean, and if I’m trying to solve numbers in scattered information effectively, for most people that’s an average of 6.5 percent increase from where you are now.
New Prime Minister Liz Truss heads her first cabinet today on Downing Street, where the bill blocking package is at the top of the agenda.
“If you’re less of a user, it’s actually less than a 6.5 percent increase because that £400 benefit helps you the most. If you’re a higher user, it will be greater than 6.5 percent, but not closer to 80 percent.”
With this in mind, when a caller asked Martin what he would do with the utility company that wanted to upgrade its direct debit, he suggested waiting for the anticipated announcement.
The caller explained that his current monthly payment could go from £132 to £425.
Noting that his account is on credit and the price limit is expected to increase by 80%, Martin pointed out that the change would be “too much”.
But he added: “But what would I actually do, because most likely tomorrow we will see such a major change announced…[is] hold on for a few days.
“And if we know then that energy isn’t growing as strongly as we thought, then it would be much easier for you to argue with them that this collection is too high.”
Answering a question from viewers about today’s show, Martin said he thought there might be an announcement tomorrow night.
He noted that if he was wrong about the announcement, he could reconsider the matter next week.
The new prime minister rejected Sir Keir’s push for unexpected gains for business, but insisted he would not let the British and business suffer the consequences of the stalemate with Russia. He confirmed that he will be announcing a new package tomorrow.
“In our energy plan, I will make sure we help companies and people in the immediate price crisis and ensure that resources are available for the long term,” he told lawmakers.
The stock market came after Ms Truss convened her newly loyal cabinet to finalize her plans for a bill – and the Bank of England issued a stern warning that inflation could reach 22% without action.
The prime minister immediately began to address the nascent crisis and formed a new high-level team filled with leaders and free of Rishi Sunak supporters.
A package has been thrown to cut energy bills that could cost taxpayers £150 billion, with typical household payments capped at £2,500 per year. Including a pre-existing £400 payment that will effectively nullify the massive increase that will come into effect next month.
Alarms have risen in some quarters that this will only increase the UK’s debt mountain, as markets have already reacted by increasing interest payments.
However, while testifying to MPs this morning, Bank of England leaders made it clear that negligence could aggravate the problems.
Economics chief Huw Pill said forecasts that CPI inflation could reach 22% were “reasonable” and that this was a “mechanical” result of rising gas prices amid a stalemate with Russia.
He suggested that a bailout would lower inflation and the Bank’s latest forecast would peak at 13% in the last quarter of the year.
“I would expect a drop when the headline is adjusted for the short-term effects of inflation,” Pill said.
Bank President Andrew Bailey did not want to get involved in the impact of Ms. Truss’ plans on borrowing costs and inflation. After the Tory leadership match, he said his focus was on “well-defined policy”.
Source: Daily Mail
