THE crippling rise in the cost of energy bills will lead to illness, death & crushing debt, experts have today warned.
The cost of energy for British consumers will rise by 80% from October, regulator Ofgem said on Friday – taking the average annual household bill to £3,549.
Martin Lewis said the situation is a “genuine social and financial catastrophe that is putting lives at risk” – and that people will DIE this winter.
He told BBC Radio 4’s Today Programme: “If we do not get further government intervention on top of what was announced in May, lives will be lost this winter.”
And reacting to today’s announcement by Ofgem, charity The Poverty Alliance has warned mounting socio-economic pressure will lead to a wide range of health problems.
Director Peter Kelly said: “The first moral duty of government is to protect people and provide them with security. The UK Government and Ofgem are failing badly in that duty and acting without any sense of compassion and justice.
“This massive price hike is in line with predictions. Ministers knew this was coming for months but have put nothing in place to prevent a humanitarian disaster.
“We must be clear. Bills of this size will be completely and utterly unaffordable for people on low incomes, many of whom have already been struggling with cuts to social security and huge wage squeeze for years and years. They will cause stress, anxiety, illness, debt and death.”
In another crushing blow, the Trades Union Congress today said energy bills will rocket 35 times faster than wages. and 57 times faster than benefits in the last three months of this year.
It added that while average nominal wages will rise by £1,470 in the year to October, energy bills will soar by £2,270 in the same period, leaving workers £800 worse off.
Read our live blog below for the latest updates….
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Martin Lewis worries for disabled families and children
Martin Lewis earlier told Good Morning Britain: “I worry terribly for some of those who have disabled children or disabilities themselves who need lots of electrical equipment to keep their houses warm because of medical conditions.
“There’s also a price cap for pre-payment, there’s also a price cap for those paying in receipt of bills – those caps are higher and I’m afraid to say it doesn’t end there.”
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Martin Lewis calls for ‘urgent Government intervention’
Speaking to Good Morning Britain, MSE founder Martin lewis said: “While this is shocking, it is far from surprising and we need urgent further government intervention.”
He said the £3,500 quoted is the average for someone with “typical usage”, adding: “Of course, most people don’t have typical usage.
“That means there is no maximum amount you can pay for gas and electric.”
Mr Lewis says it means Brits could “easily” be paying £5,000 to £10,000 a year for heavy energy usage.
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Disabled man talks of his ‘shock’ at price cap rise
A disabled man has said he will heat just one room in his home after Ofgem confirmed an 80.06% rise in the energy price cap.
Jason Alcock, 51, from Stoke-on-Trent, who has autism, ADHD and bipolar disorder, said he was “shocked” by the energy price cap rise and feared for people “on the breadline” where he lives.
“It’s crazy. There’s absolutely no way people can afford this kind of price rise. I’m shocked by it,” he told the PA news agency.
“I thought they would have pulled back on it. I thought we wouldn’t have this, what they call ‘zombie government’ with no-one in charge.
“We’re coming up to winter now. When winter starts and people can’t put their heating on… I’ll be heating one room in my house, but people have got children. The area I live in is a pretty low income area and there’s a lot of people on the breadline and they are going to suffer.
“What can you do? I am at the point where I’m trying to buy cheaper stuff but the prices across the board have gone up. I know this is happening, but what can I do?
“I’ve cancelled my direct debit for both gas and electric because they were saying I should pay something like £300 a month to cover it. So I said screw that, and cancelled it. And instead I set up a standing order, and I pay £75 into my electric and £25 into my gas per month, and I know at the end of the year there’s going to be a big bill but that’s what I can comfortably afford with other cost of living rises like the food shop and that, which has got to come first.”
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Explained: Can I get help from my energy supplier?
Yes, energy suppliers do offer support for those who are struggling to pay their bills.
There are plenty of energy grants and schemes open to help you out if you’re struggling.
British Gas has recently confirmed that it’ll pay its most vulnerable customers grants worth £750 to help with sky-high bills.
Ask your supplier what’s on offer and how to apply, or check here:
There’s also a one-off fuel voucher from your energy supplier if you’re on a prepayment metre.
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Pre-payment meter users eligible for £400 energy bills discount
All four million prepayment meter customers are eligible for a £400 energy bills discount this winter.
Those on smart prepayment meters won’t need to do anything and the discount will be automatically credited to your meter each month.
However, those on older traditional prepayment meters won’t be able to receive the discount directly.
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Martin Lewis says energy prices ‘unaffordable’ this winter
Consumer champion Martin Lewis has said energy prices will be “unaffordable” this winter.
He told ITV’s Good Morning Britain: “The prediction now in January is up another 51% on top of where we are now and that would take a typical bill and direct debit to £5,386 a year.
“And that is not such a crystal ball prediction because we are seven months through the 10-month assessment period for the January price cap. “
Mr Lewis added: “So if we look at the totality across the winter, from October until March, you are probably talking on typical use an average bill of over £4,400 a year, typical pro rata – it is totally unaffordable.”
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Poll: Six in 10 voters wanted targeted support for households
Six in ten voters want targeted support for households hit by not just energy costs but also by rises in essentials such as food and water, a poll by Public First shows.
If she becomes Prime Minister, front-runner Ms Truss will hold a fiscal event next month where measures will include reversing the National Insurance increase.
She also spelt out how she would boost energy supplies and then see “what else needs to be done”.
Support this autumn already includes £400 off energy bills, a second tranche of a £650 payment for vulnerable households and £300 for all pensioners.
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What help can prepayment meter customers get?
Like millions of others, Jo will be able to get some help with her energy bills through the government’s package of support.
Some energy companies also provide emergency credit to customers whose balances are running low.
This credit can be used to tide people over.
The Sun has put together a full list of energy firms offering emergency credit on prepayment meters and how much you can get.
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‘We won’t have Christmas this year’
Widow and mum-of-three Louise Parker says had to tell her children there will be no Christmas this year.
Her energy bills have already more than doubled from £68 to £151 a month since her fixed rate tariff ended in May.
Louise, a 48 year-old from Higham Ferrers, Northants clocks up more than 50 hours a week just to stay afloat.
She has to support her three children Heather, 12, Christian, 13, and Michael, 15 and she is resorting to credit cards just to pay for the basics.
She said: “Christmas is less than four months way and I’ve had to prepare my children for the worst.
“It’s not something you should be putting onto your children, but they had to know.
“I’ve already stopped cooking Sunday roasts and baking cakes because I’m worried about rising costs.”
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Brits urged to switch off portable heaters off overnight
Electrical Safety First has released advice on using plug-in heaters as energy bills skyrocket.
Brits are urged to use them safely and follow guidelines such as keeping heaters away from fabrics and switching them off before bedtime.
Lesley Rudd, Chief Executive of Electrical Safety First said: “With bills skyrocketing, we are expecting to see some households turn to plug-in heaters for short bursts of heat in single rooms as, for many, central heating becomes too costly.
“We urge the public to use them safely and to never leave portable heaters close to fabrics or switched on overnight.”
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What you need to know about Cost of Living payments
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Charges passed on to households are ‘simply unaffordable’
Katie Schmuecker, principal policy adviser for the Joseph Rowntree Foundation, said households are “crying out for certainty and security”.
She said: “It is simply unthinkable that the price rises announced today can go ahead without further Government intervention on a significant scale.
“To force the burden of rising wholesale energy prices onto households will plunge many into destitution.
“Millions more will face the threat of bills they simply cannot pay, homes they cannot heat and stomachs they cannot fill.
“It is the job of Government to decide how the burden is fairly shared between families, businesses and the public finances.
“Whoever occupies number 10 next will be remembered for who they protect – they must make sure energy doesn’t become a luxury only the wealthy can afford.”
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Households are ‘crying out for certainty & security’
Katie Schmuecker, principal policy adviser for the Joseph Rowntree Foundation, said households are “crying out for certainty and security”.
She said: “It is simply unthinkable that the price rises announced today can go ahead without further Government intervention on a significant scale.
“To force the burden of rising wholesale energy prices onto households will plunge many into destitution.
“Millions more will face the threat of bills they simply cannot pay, homes they cannot heat and stomachs they cannot fill.
“It is the job of Government to decide how the burden is fairly shared between families, businesses and the public finances.
“Whoever occupies number 10 next will be remembered for who they protect – they must make sure energy doesn’t become a luxury only the wealthy can afford.”
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Government accused of a ‘dereliction of duty’
Appearing on BBC Breakfast, Labour MP Rachel Reeves said people are “worried sick” about what is happening.
She said today’s announcement will “strike fear in the hearts of families right across the country”.
Ms Reeves called on the Government to freeze energy fills and follow Labour’s own proposals.
She said: “The fact that no Government minister is available to come on your programme today is just appalling.
“They are not here to give assurances they are not here to set out what they are going to do. That is a dereliction of duty.”
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The Government must make choices, says Labour
Labour shadow chancellor Rachel Reeves said that the Government must choose between letting families suffer, or stop the oncoming rise.
“Today’s announcement will strike fear in the heart of many families, and force many to make unthinkable choices this winter.
“The Tories now face an urgent choice.
“They can carry on letting oil and gas companies make huge profits whilst every family suffers with bills rising this winter.
“Or they can act now and stop the energy price cap rising, by bringing in a windfall tax on those oil and gas profits.
“People deserve a government that can meet the scale of this national emergency – not this spectacle of a Tory leadership race or a Prime Minister that put his out of office on months ago.
“Labour is on your side, and our fully-funded plan to freeze the price cap will make sure households don’t pay a penny more this winter, saving you £1,000.
“Our mission for home grown renewable energy and to insulate 19 million homes will keep bills down for the long term too.”
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Energy bills will rise 35 times faster than wages
The Trades Union Congress has said energy bills will rise 35 times faster than wages and 57 times faster than benefits in the last three months of this year, after the energy price cap was hiked by 80%.
It added that while average nominal wages will rise by £1,470 in the year to October, energy bills will soar by £2,270 in the same period, leaving workers £800 worse off.
“Nobody should have to worry about heating their homes this winter,” said TUC General Secretary Frances O’Grady.
“But millions are facing bankrupting bills in the months ahead.
“Today’s energy price rise will be a hammer blow to family budgets and tip many households into fuel poverty.
“Ministers must immediately cancel this catastrophic increase. This is the worst possible time for the government to go missing in action.
“And to make sure energy remains affordable to everyone, they should bring the energy retail companies into public ownership.”
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Disabled people ‘being punished for using more energy’
Disabled people “feel like they are being punished for using more energy”, the disability equality charity Scope warned.
Policy manager Tom Marsland said: “After months of harrowing predictions about energy bills, today’s announcement confirms disabled people’s fears.
“Life already costs more for disabled people. Now the cost of charging a wheelchair or using a breathing machine will have almost trebled in a year.
“We’ve been inundated with calls from disabled people who don’t know which way to turn and feel like they are being punished for using more energy.
“The government must intervene now.
“They should start by doubling the support package, and look at bringing in discounted tariffs for disabled customers who need more energy.”
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Unite: Fuel crisis to become worse for workers after 80% price cap rise
Sharon Graham, the general secretary of trade union Unite, said that the fuel crisis is set to become worse for workers after the energy price was set 80% higher.
“We know now that rampant corporate profiteering is at the very heart of our soaring energy bills and Ofgem’s soaring price cap.
“Until this corporate looting of our energy networks is confronted, the fuel crisis will become more and more perilous for workers and their families.”
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Be sure to turn off ‘vampire appliances’
So-called “vampire appliances” drain energy when left on standby or when used inefficiently – such as a TV and extra fridges.
Desktop computers and electric towel rails are among some of the worst offenders – they could be adding up to £500 onto your yearly costs.
Turn them off correctly – by switching them off at the plug and NOT via the standby button – to avoid a big bill sting.
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Emotional Martin Lewis admits: ‘I don’t have an answer’
MSE’s Martin Lewis was close to tears on BBC Breakfast this morning.
The Money Saving Expert looked frustrated angry and upset as he spoke to anchors Charlie and Naga.
Fighting back tears, Martin said: “People are staring down the abyss, the financial pit of despair.”
Staring into the camera, the consumer champion added: “I don’t have an answer.
“I’ve been doing this job for years but I don’t actually have an answer.”
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Top tip: Save £20 by putting foil behind your radiator
Putting foil behind your radiator could save you £20 a year, according to British Gas engineer Joanna Flowers.
Instead of your radiator blowing hot air at the wall, if you put the foil behind the radiator, it will reflect it.
More hot air will be circulated around the room, giving your radiator a boost.
Simply put sellotape on the corner of the foil and pop it behind your radiator.
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‘We can’t let Putin use energy to divide us’ says HM Treasury
Proposals are being lined up to allow either Liz Truss or Rishi Sunak to make quick decisions to help deal with the crisis when they become PM.
A Treasury source told The Sun: “This will mean the incoming Prime Minister can hit the ground running and deliver support to those who need it most.
“Putin is driving up gas prices to inflict as much pain as he can on the British people, in revenge for our steadfast support of Ukraine. We can’t let him use energy to divide us.”
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Explained: What help is available?
From September the second, one million people receiving tax credits will receive the first half of the £650 cost of living payment.
The money will be paid in the same way you usually get your tax credits.
And from September 20, over six million people with disabilities are set to receive £150 to help with the rising cost of living.
From October the first, all UK households are set to receive the £400 energy bills rebate.
The payment will be made up of six discounts between October and March next year.
Households will receive a £66 energy bill discount in October and November and a discount worth £67 in December, January, February and March.
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Save £100 by turning your thermostat DOWN
This energy-saving trick has been around for donkeys years – and experts say it will help Brit consumers now more than ever.
Comparison giant Uswitch has estimated that turning down your thermostat by just ONE degree can shave as much as £100 off your bill.
Energy Saving Trust recommends you should put it to the “lowest comfortable temperature”.
For most households, this is between 18 and 21 degrees Celsius.
If you’re tempted to turn it up a notch when the weather turns, reach for a jumper instead to avoid a bill sting.
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You can save £490 by simply heating the one room you need
Despite today’s crippling price cap rise, there are still a number of things you can do at home to reduce your energy use.
A cheaper way of using your heating is by only turning the radiators on in the rooms you are using.
This simple but effective trick means you’re not wasting energy – and in turn, cash – heating up rooms that you are not using.
How much you can save from this varies on a number of factors, such as how big your house is for example.
But savvy saver Scott Dixon told The Sun that he’s saved £490 from just turning the heating on in his lounge – and turning his other radiators off.
