MARTIN Lewis’ MoneySavingExpert.com has unveiled a new energy price rise calculator with rates set to go up.
Millions will have to pay for their energy from April 1 when the government extends its energy price guarantee.
Energy bills are set to rise for millions of households from April
The discount was introduced in October last year by then Prime Minister Liz Truss and meant the average household would pay around £2,500 per year for their energy.
But the government has since said the £2,500 limit will increase to £3,000 from April and last 12 months.
It means millions of households will have to pay more for their energy from next month.
Now, Martin Lewis’ MoneySavingExpert.com has unveiled a new calculator that can tell you how much more you might have to pay.
It’s worth noting that the calculator is for households on a standard tariff and is just an estimation.
What you actually end up paying might not be exactly the same.
Plus, its just for those in England, Wales and Scotland and doesn’t factor in any debt or credit on your account.
The price cap affects roughly 22million people on default or standard tariffs offered by the country’s energy providers, according to Ofgem estimations.
Why are energy prices going up in April?
Wholesale energy prices started increasing towards the end of 2021 as countries emerged from coronavirus lockdowns.
They spiked further following Russia’s invasion of Ukraine.
Wholesale costs have, in turn, been passed on to consumers.
Prices were due to rise to £3,549 per year for the average household from October 1 under Ofgem’s price cap.
But the government stepped in and introduced the energy price guarantee, which effectively subsidises energy customers.
Originally, energy prices for the average household were due to stay at around £2,500 for two years from last October.
But, Jeremy Hunt has since announced this will go up to £3,000 from April for a year.
It’s important to know the £3,000 figure isn’t a limit on what you will pay, just the average.
Depending on your usage you could pay more or less.
What energy bill help can I get?
If you’re nervous about your bills going up from April, there’s help on offer.
The government has announced a second batch of cost of living payments that will paid out to millions of households.
This includes a £900 payment for millions on certain means-tested benefits.
Plus, a one-off £300 payment will be made to pensioners in Winter 2023/24.
It’s not yet known who will qualify for these payments but you qualified for the last payment if:
- You were born on or before September 25, 1956
- You lived in the UK for at least one day during the week of 19 to 25 September 2022 in what is known as the “qualifying week”
Those with disabilities will get a £150 payment this summer too.
The exact eligibility criteria for getting the payment has not been revealed yet though.
On top of this, plenty of energy companies offer customers grants if they are struggling to make payments.
This includes British Gas, Scottish Power, Ovo, E.ON, EDF and Bulb Energy.
It’s worth contacting your provider to see what help you might be able to get.
If you are on a prepayment meter and struggling to top up, you can also get fuel vouchers from your local council.
In most cases, you can then redeem them at PayPoints or a Post Office signed up to Payzone.
If you don’t know who your local council is, you can use the government’s locator tool found on its website.
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