MARTIN Lewis has warned millions of households could be plunged into poverty ahead of the Budget.
The MoneysavingExpert.com (MSE) founder has written to the Chancellor to call for April’s planned energy rise to be scrapped.
Martin Lewis has written to the government ahead of April’s hikeITV
The average bill is expected to rise from £2,500 to £3,000 but Martin said that is no longer necessary as wholesale prices have “come down very substantially”.
The money expert said the planned cuts must be postponed.
He said: “It just seems to me there is no need to do this.
“If we postpone this rise it is likely from July, wholesale prices will have gotten to the price cap and if the energy price cap which is set by the regulator and is dictated by wholesale prices, is lower than the energy price guarantee we pay the lower amount, and that is likely to happen from July.”
Martin said: “To put this national act of harm of increasing the price guarantee for just three months, to throw another 1.7million people into fuel poverty taking it to 8.4 million, it seems unnecessary.”
He said any cancellation would have to happen before the March Budget because by then people will have had letters telling them their bills are going up.
The letter, which was sent on Thursday morning, is supported by charities including Citizens Advice, National Energy Action and StepChange.
The average household’s energy bills might hit around £2,200 a year from July.
This is £300 less than previously thought, experts at Cornwall Insight said.
It is around the same as an average family pays today after the Government support has been factored in.
Without backing from the Government the average household would pay £4,279 per year for their energy bills between January and April – the level of the Ofgem price cap.
But the Government has overridden the price cap with a promise to pick up the difference and ensure that average bills are £2,500.
It has also been sending £400 to every household in the country between October and March.
From April the support gets less generous and will only reduce average bills to £3,000.
What other help is available?
As part of the Autumn Statement, it was revealed millions on benefits and Universal Credit will receive an extra one-off £900.
Eight million households have already received cost-of-living payments worth up to £650.
Pensioners have also started getting a £300 one-off payment.
The current pensioner cost of living payment is being handed out to millions on a low income.
You qualify under the current rules if you normally get the winter fuel payment, but this could change under the new rules.
The £300 cost of living payment is paid on top of the other winter support.
Struggling families are eligible for the Warm House Discount to help them tackle the cost of living.
There are also plenty of energy grants and schemes open to help you out if you’re struggling:
British Gas Energy Trust Individuals and Family FundBritish Gas Energy TrustEDF Customer Support FundE.ON and E.ON Next GrantsOctopus Energy Assist FundOVO EnergyScottish Power Hardship Fund
There’s also a one-off fuel voucher from your energy supplier if you’re on a prepayment meter.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected]