UK Money Saving Expert Martin Lewis has issued a warning to Brits as he explained the new Energy Price Cap.
Speaking on his Twitter yesterday, Martin Lewis revealed that the average Brit will see their energy and gas bill fall by 17% this July.
However, the cash guru and Good Morning Britain presenter warned that Brits should expect their direct debits to reflect this straight away, rather it may take some time to make the alteration.
Mr Lewis went on to explain that this July marks the first time since last that the government will not be subsidising energy bills to help with the cost of living.
This is because July will see the average energy bill fall below the government's energy price guarantee scheme.
Read our Martin Lewis below for the latest updates...
Major broadband provider to hike prices by up to £42 a year in weeks
A broadband provider is hiking bills for thousands of customers within weeks.
Now is increasing the price of its broadband tariffs for the first time since its launch in 2018.
The move is expected to affect thousands of customers but Sky, which owns the brand, wouldn't tell us the exact number.
The average customer will see their bill increase by £42 a year - which works out to £3.50 more per month.
The hike in prices will take effect from Wednesday, July 5.
A statement on the Now website said: "As you might know, many other providers are raising their prices, and we'll be making some changes.
"From July 5, 2023, the prices of our broadband membership plans will be going up by £3.50.
"You’ll see the price change reflected in your bill on or after July 5.
"If you're on an offer, you'll continue to enjoy a discounted price until your offer end date, but your payments will increase by £3.50 a month."
Jeremy Hunt vows he’s ‘willing to do what it takes’ to help with bills
The chancellor vowed he'll "do what it takes" to help with bills, as he refused to rule out future energy price hikes.
Industry regulator Ofgem announced average gas and electricity bills will finally drop in July by £426 a year.
In a huge relief for hard-up households, the energy price cap will be cut from £3,280 to £2,074.
But the Chancellor wouldn't rule out costs going back up again in the Autumn.
He told Sky News: "All I can say is that I think I've demonstrated in the autumn statement, and the spring budget where I extended the energy price guarantee for another three months, funded in part by a windfall tax on the oil companies, that we are willing to do what it takes.
"We are very aware of the pressures that families are facing, and we want to do what we can to support them."
'More Government support will be needed'
Citizens Advice chief executive Dame Clare Moriarty said that energy bills are still unaffordable for millions.
She said: "For many, life is getting worse, not better. Year on year we’re breaking records for the number of people struggling with energy debt.
“It’s clear more Government support will be needed in the future for struggling households."
Martin Lewis shocks GMB viewers as he unbuttons shirt
Martin Lewis bared his chest for the first time on live TV on Thursday's Good Morning Britain.
The Money Saving Expert, 51, was fronting the ITV show alongside Kate Garraway, 56, as they discussed the news that Ofgem is lowering the energy price cap.
However, Martin was used as a model in a separate segment of the show.
Former gang member Carl Scott was chatting about his emergency bleed control kits, after losing a friend to a fatal stabbing.
Martin was quick to offer to assist in a demonstration and unbuttoned a few fastens on his white shirt before a patch was stuck onto his chest.
He said: "Let's demonstrate how it works. Do you need a dummy? That would be me."
He added: "I've never unbuttoned my shirt on television before, but there we go there's a first time for everything.
"It's for a good cause."
Exact amount your energy direct debit will drop by from July
Millions of households will see their energy bills drop this summer.
It comes after the energy regulator announced that typical gas and electricity bills will be capped at £2,074 a year from July 1.
The fall in Ofgem's price cap will reward households battling the cost of living with a £426 annual saving.
This will take effect when the government's Energy Price Guarantee, which limits the typical domestic energy bill to £2,500, expires in a month's time.
How does the energy price cap work?
The energy price cap works by setting a limit on the maximum amount suppliers can charge for each unit of gas and electricity.
That means despite the energy price cap amount being £2,074 from July, you might pay more or less than this every year, depending on your usage.
Ofgem also sets a maximum daily standing charge which is what households have to pay in order to have their home connected to the National Grid.
The energy price cap only applies to providers' standard and default tariffs.
This means if you're on a fixed-term energy deal, the cap doesn't apply to you.
What is the energy price cap?
The price cap on energy bills was introduced in January 2019 as a way to prevent households being ripped off by their energy suppliers.
It is currently £3,280 a year on average.
But households only pay £2,500 a year on average, as the price is overruled by the energy price guarantee, which is cheaper.
However, this will fall to £2,074 from July when the price guarantee finishes and the energy price cap comes into force.
Because the price cap changes every three months, it means prices could go up or down from October.
It affects around 29million customers on default or variable tariffs, according to the regulator Ofgem.
The cap is calculated based on the wholesale price of gas and electricity.
It also includes allowances for tax, charges paid to the energy networks, green levies and social payments.
The reason it has gone up so much in the last 18 months is partly due to Russia limiting its gas supply to Europe.
But there's also been high demand from Asia which has seen prices surge.
The UK also imports more than two-thirds of its gas which is subject to global price swings making prices more volatile and likely to rise.
'Encouraging to see the market is stabilising'
The price cap briefly reached £4,279 in January, with the pandemic and Russia’s war in Ukraine both pushing up wholesale prices.
Ofgem said that whilst today's level is lower, it is still "above the levels it was before the energy crisis took hold".
Its chief executive Jonathan Brearley said more focus will be needed for the government, regulator and industry to support the most vulnerable groups this winter.
He said: “After a difficult winter for consumers it is encouraging to see signs that the market is stabilising and prices are moving in the right direction.
"People should start seeing cheaper energy bills from the start of July, and that is a welcome step towards lower costs."
Martin Lewis reveals amount you will be paying now with new Energy Price Cap
Martin Lewis, founder of MoneySavingExpert, told BBC Radio 4’s Today programme that for every £100 you pay on energy now, you'll likely be paying £80-£85 from July.
While this may come as a welcome relief, campaigners have said bills in July will be comparable to those seen last winter.
This is because the government’s support schemes have come to an end.
Plus, bills are almost double the level of October 2021, when a typical household paid £1,271 a year.
Energy bills to fall by up to £426 for millions
Energy bills are set to fall by up to £426 for millions of households this summer.
The energy regulator confirmed the new price cap, which comes into effect on July 1, this morning.
The Ofgem price cap has fallen by £1,206 from £3,280 to £2,074 a year and it will cover the period to October 1.
The lower cap will replace the government’s Energy Price Guarantee, which currently limits the typical household energy bill to £2,500.
It means the average household will see their annual bill drop by £426.
Martin Lewis urges Brits to check if they can qualify for £3,500 a year cash boost
Martin Lewis has urged Brits on a low income to check if they qualify for a £3,500 annual boost.
The MoneySavingExpert.com (MSE) addressed viewers on Good Morning Britain last week.
During his Wallet Wednesday segment, Martin warned that 850,000 people are missing out on pension credit.
Pension Credit is designed to boost your income if you don't have lots of money coming in.
It is known as a "gateway" benefit as it opens up other forms of help, including cost of living payments, council tax discounts and a free TV Licence if you are 75 or over.
But hundreds of thousands aren't claiming it when they could be - and it could see your income boosted by thousands of pounds.
Who is eligible for bereavement support payments?
More than 21,000 households affected by bereavement but previously denied support can also apply for backdated payments.
To qualify for a payment, claimants must have met the eligibility criteria for either bereavement support payment or widowed parent's allowance on or after August 30, 2018.
This means those who lost their partner before April 6, 2017 might be able to receive the legacy benefit widowed parent's allowance, should they be found to have been eligible for this on August 30, 2018.
Similarly, a surviving parent who lost their partner on or after April 6, 2017, may be eligible for its replacement, bereavement support payment - should they have been qualified for this on August 30, 2018.
Households have until February 8, 2024, to submit any backdated claims.
The exact amount of bereavement benefit you'll be entitled to will depend on when they lost their partner and any other financial circumstances.
'I got £22,000 in free cash from the DWP thanks to Martin Lewis tip'
A Martin Lewis fan has revealed how she got thousands in free cash after following his tips.
It comes after the government made a huge change to bereavement support payments.
One MoneySavingExpert fan has revealed how she's managed to claim back £22,000 in backdated payments following the unexpected death of her partner in 2016.
Mother-of-two, Joanne Greenwood told MoneySavingExpert.com: "I was going through my emails and almost deleted the MSE weekly email when I spotted the reader success about bereavement support.
"I clicked on the link and followed the guidance in the story to make a claim.
"I was told I was eligible but I was totally shocked when £22,000 dropped into my bank account.
"I had to ring the Department for Work and Pensions (DWP) to make sure it was correct and not a mistake," she said.
Scottish power help
If you are on a lower income and struggling to pay your bills you could be eligible for the ScottishPower Hardship Fund.
The fund can help you get back in control of your finances by clearing or reducing arrears by crediting your ScottishPower energy account.
You could be eligible if you meet the terms and conditions and are receiving benefits including, Income Support, Job Seekers Allowance, Pension Credit, or Employment and Support Allowance.
There are also other special circumstances that could make you eligible such as reduced income due to illness.
If you decide to make an application, you can do so through Social Enterprise Direct, which manages the scheme for Scottish Power.
British Gas reopens applications for extra support
The British Gas Energy Trust has reopened applications for its Individuals and Family Fund, and the good news is you do not need to be a British Gas customer to apply.
Successful applicants could get a grant worth up to £1,500 to help with their energy bills.
To be considered for a grant you must meet the following criteria:
- You must live in England, Scotland or Wales
- You will have not received a grant from the British Gas Energy Trust within the last two years
- You must be seeking a grant to clear an outstanding debt on a current or open gas, electricity or dual fuel energy account in your name or be a member of that household. The energy account must relate to your main residence
- You have electric and/or gas debt
- You do not have savings above £1,000
- You have received help from a money advice agency
When applying you will need to provide evidence that you've received money advice in the last three months.
You'll also need proof of your current household income.
British Gas customers will also need a recent meter reading - unless they're on a smart meter.
You can apply for the fund on the British Gas Energy Trust website.
How you can get British Airways flights to Spain for just £1
You can get flights to Spain with British Airways for just £1 - but there's a catch.
Many Brits will be looking for ways to save money on their next break, with most on a much stricter budget due to the cost of living crisis.
But the airline is giving customers the chance to buy flights to holiday hotspots in Europe for just £1.
Last month, British Airways introduced Avios-Only flights to Sharm El Sheikh and Geneva with both routes selling out in less than 24 hours.
Because of their popularity, the airline has introduced several other Avios-Only flights to Tenerife, Lanzarote, and Barcelona.
On Avios-Only flights, customers use their Avios points to purchase their plane tickets.
While these flights are exclusive to point holders, those passengers who only have enough points for a one-way ticket can buy their return ticket on another flight.
There are two route options available for 2023 including London Gatwick to Las Palmas between November 15 to November 22.
Major broadband provider to hike prices by up to £42 a year in weeks
A broadband provider is hiking bills for thousands of customers within weeks.
Now is increasing the price of its broadband tariffs for the first time since its launch in 2018.
The move is expected to affect thousands of customers but Sky, which owns the brand, wouldn't tell us the exact number.
The average customer will see their bill increase by £42 a year - which works out to £3.50 more per month.
The hike in prices will take effect from Wednesday, July 5.
A statement on the Now website said: "As you might know, many other providers are raising their prices, and we'll be making some changes.
"From July 5, 2023, the prices of our broadband membership plans will be going up by £3.50.
"You’ll see the price change reflected in your bill on or after July 5.
"If you're on an offer, you'll continue to enjoy a discounted price until your offer end date, but your payments will increase by £3.50 a month."
Jeremy Hunt vows he’s ‘willing to do what it takes’ to help with bills
The chancellor vowed today he'll "do what it takes" to help with bills, as he refused to rule out future energy price hikes.
Industry regulator Ofgem announced average gas and electricity bills will finally drop in July by £426 a year.
In a huge relief for hard-up households, the energy price cap will be cut from £3,280 to £2,074.
But today the Chancellor wouldn't rule out costs going back up again in the Autumn.
He told Sky News: "All I can say is that I think I've demonstrated in the autumn statement, and the spring budget where I extended the energy price guarantee for another three months, funded in part by a windfall tax on the oil companies, that we are willing to do what it takes.
"We are very aware of the pressures that families are facing, and we want to do what we can to support them."
'More Government support will be needed'
Citizens Advice chief executive Dame Clare Moriarty said that energy bills are still unaffordable for millions.
She said: "For many, life is getting worse, not better. Year on year we’re breaking records for the number of people struggling with energy debt.
“It’s clear more Government support will be needed in the future for struggling households."
Martin Lewis shocks GMB viewers as he unbuttons shirt
Martin Lewis bared his chest for the first time on live TV on Thursday's Good Morning Britain.
The Money Saving Expert, 51, was fronting the ITV show alongside Kate Garraway, 56, as they discussed the news that Ofgem is lowering the energy price cap.
However, Martin was used as a model in a separate segment of the show.
Former gang member Carl Scott was chatting about his emergency bleed control kits, after losing a friend to a fatal stabbing.
Martin was quick to offer to assist in a demonstration and unbuttoned a few fastens on his white shirt before a patch was stuck onto his chest.
He said: "Let's demonstrate how it works. Do you need a dummy? That would be me."
He added: "I've never unbuttoned my shirt on television before, but there we go there's a first time for everything.
"It's for a good cause."
Exact amount your energy direct debit will drop by from July
Millions of households will see their energy bills drop this summer.
It comes after the energy regulator announced that typical gas and electricity bills will be capped at £2,074 a year from July 1.
The fall in Ofgem's price cap will reward households battling the cost of living with a £426 annual saving.
This will take effect when the government's Energy Price Guarantee, which limits the typical domestic energy bill to £2,500, expires in a month's time.
How does the energy price cap work?
The energy price cap works by setting a limit on the maximum amount suppliers can charge for each unit of gas and electricity.
That means despite the energy price cap amount being £2,074 from July, you might pay more or less than this every year, depending on your usage.
Ofgem also sets a maximum daily standing charge which is what households have to pay in order to have their home connected to the National Grid.
The energy price cap only applies to providers' standard and default tariffs.
This means if you're on a fixed-term energy deal, the cap doesn't apply to you.
What is the energy price cap?
The price cap on energy bills was introduced in January 2019 as a way to prevent households being ripped off by their energy suppliers.
It is currently £3,280 a year on average.
But households only pay £2,500 a year on average, as the price is overruled by the energy price guarantee, which is cheaper.
However, this will fall to £2,074 from July when the price guarantee finishes and the energy price cap comes into force.
Because the price cap changes every three months, it means prices could go up or down from October.
It affects around 29million customers on default or variable tariffs, according to the regulator Ofgem.
The cap is calculated based on the wholesale price of gas and electricity.
It also includes allowances for tax, charges paid to the energy networks, green levies and social payments.
The reason it has gone up so much in the last 18 months is partly due to Russia limiting its gas supply to Europe.
But there's also been high demand from Asia which has seen prices surge.
The UK also imports more than two-thirds of its gas which is subject to global price swings making prices more volatile and likely to rise.
'Encouraging to see the market is stabilising'
The price cap briefly reached £4,279 in January, with the pandemic and Russia’s war in Ukraine both pushing up wholesale prices.
Ofgem said that whilst today's level is lower, it is still "above the levels it was before the energy crisis took hold".
Its chief executive Jonathan Brearley said more focus will be needed for the government, regulator and industry to support the most vulnerable groups this winter.
He said: “After a difficult winter for consumers it is encouraging to see signs that the market is stabilising and prices are moving in the right direction.
"People should start seeing cheaper energy bills from the start of July, and that is a welcome step towards lower costs."
Martin Lewis reveals amount you will be paying now with new Energy Price Cap
Martin Lewis, founder of MoneySavingExpert, told BBC Radio 4’s Today programme that for every £100 you pay on energy now, you'll likely be paying £80-£85 from July.
While this may come as a welcome relief, campaigners have said bills in July will be comparable to those seen last winter.
This is because the government’s support schemes have come to an end.
Plus, bills are almost double the level of October 2021, when a typical household paid £1,271 a year.