Published On: Thu, Aug 18th, 2022

Energy bills: Martin Lewis’ MSE’s free online tool shows whether to fix tariff | Personal Finance | Finance

In just a few weeks time, the energy price cap is forecast to rise a further 65 percent from the current £1,971 to a staggering £3,582. Money Saving Expert founder Martin Lewis has been urging bill payers to look into fixed tariffs now as it could work out cheaper in the long run.

Martin continued: “Many are paying double what they were a year ago, and another huge hike is expected in October.

“So understandably the big question I’m being asked is, ‘Should I stick on the price cap, or lock into a fixed energy tariff?’

“If you’re offered a year’s fix at no more than 95 percent above your current price-capped tariff, or 100 percent more if you very strongly value budgeting certainty, it’s worth considering.”

People can use the Should You Fix calculator on the MSE website to get a better idea of whether it’s a good idea to fix now.

What is the energy bills support scheme?

Octopus Energy recently introduced a financial hardship fund of £6million for households struggling to pay their energy bills.

A spokesperson said: “We talk to 40,000 customers a day, and we know how hard it is right now for many people.

“We are in frequent dialogue with the government and our regulator Ofgem on how best to address this and are doing all we can to help customers ourselves in the meantime.”

Other companies have also set up energy bills support schemes so it’s worth getting in touch with them if people are struggling.

Millions of Britons will receive non-repayable discounts on their energy bills this winter, as part of the Energy Bills Support Scheme.

The £400 discount will be applied over several months by energy companies from October.

Some eight million people on means-tested benefits will receive a further £650 in additional help – half of which should already have been paid.

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