Martin Lewis has urged households to fix their energy tariffs ahead of the October 1 price cap increase, warning that rates will be 17% higher than they were in April. The 54-year-old BBC and ITV star explained that the October price cap rise averages 3.6%, following a 12.6% increase in July, and that this winter will bring significantly higher costs for those on standard variable tariffs.
Price cap rise details and winter impact
Speaking about the upcoming change, Lewis said: "The price rise on October 1st on the price cap is 3.6% on average. This is 3.6% on the back of the 12.6% rise we saw in July." He stressed the timing of the increase, adding: "This October price cap lasts until December, and that means you're getting a big rise going into winter. In fact, it's 17% more, rates are on average 17% higher than they were back in April."
Lewis also addressed the government's VAT reduction on domestic electricity, which he noted was due to take effect on October 1. "I thought the government was doing something about this, I thought it had scrapped VAT on domestic electricity. It has, and that VAT will go as well on the first of October. It only lasts six months and it's only on electricity. Without that, we would have seen a 2% extra rise," he said.
Breakdown of electricity and gas costs
The financial journalist provided a detailed breakdown of the changes. "With electricity, the unit rate is going up just less than 1%, and the standing charge is actually going down by 4%. Gas is where the real problem is. The gas unit rate is going up by 8.7% and the standing charge up by 2.2%," he said. This highlights that gas users will face the most significant increases under the new price cap.
Lewis reminded consumers that the price cap only applies to standard variable tariffs. "If you're on a fix or a special tariff, the price cap does not affect you," he explained, urging households to act now to avoid the rise.
Advice to fix now and potential savings
He advised that fixing a tariff now could offer substantial savings compared to staying on the price cap. "If you fix, you lock in that unit rate and standing charge. From October, expect the cheapest fix now to be around 10% cheaper than the rate you'll be paying from October if you stayed on the price cap," he said.
Lewis concluded with a direct recommendation for consumers: "The safest thing to do if you're on the price cap is just to fix today." His advice comes as households prepare for higher energy costs entering the colder months, with the price cap set to remain in effect until December.
