Martin Lewis reveals what to do about £700 energy bill price hike

The Money Saving Expert founder was speaking on his ITV show, The Martin Lewis Money Show.

Energy regulator Ofgem announced the new energy bill price cap will rise by 54 per cent per cent from April.

It means energy prices will rise by £693 a year for millions of households after regulator Ofgem hiked the price cap on bills to £1,971.

Energy price cap tariff since 2019. (PA)

Martin Lewis warns of further rise to energy price cap

Mr Lewis predicted what could happen next and explained how there is currently no fixed rate term on the market that would beat the energy price cap.

The cash-saving guru share grim news that the energy cap is due to rise again in October by around 20% - pushing bills above the £2,300 mark.

The consumer champions advised to “do nothing” with their energy bills as customers scramble for a cheaper deal.

He said: “I’ve done the numbers - I’ve had to make a lot of assumptions, I don’t have a crystal ball.

“If we assume that in October, the price cap stays where it is in April, you would have to find a fix that is less than 44% more expensive than where we are right now for it to be worth fixing.

“If we think it’s going to go up in October, as that line [on the graph] shows by 20%, you’d need to find a fix that is now more than 59% more than the price cap today.

“The cheapest fix right now is 68% more than the current price cap - way more than the April 1 price cap, even more than my high end scenario in October

“Of course, anything could happen - but there ain’t no market fix that you should be going for right now.

“Maybe some existing customers in certain circumstances with high or low use might find one in these yellow lines [on the graph] but the message for most people: do nothing. Stick on the price cap. Don’t fix.”

Martin Lewis grills Rishi Sunak over response to energy crisis in the UK

Rishi Sunak faced Martin Lewis after energy bill price hike. (PA) (Image: PA)

Mr Lewis also interviewed the chancellor, Rishi Sunak, as part of Thursday night’s show where he asked about the government support in response to rising energy bills.

The Chancellor said those eligible in England will get a £150 discount on their council tax bill in April

A grant of £200 will be paid in October off energy bills for households across the UK.

Speaking to the chancellor, Mr Lewis said: "There are clearly two groups of people that you had to help here: one was the most vulnerable and the other are in the squeezed middle for who life is going to be difficult but survivable with these increases.

"Just looking at the most vulnerable for a second, I've been warning about this since last June.

"I have been using the phrase and I don't think this is an exaggeration: some will have to choose whether they freeze or whether they starve. We have seen food bank usage go up.

"Do you believe that we are now in a position in this country where no one will have to choose between heating and starving?"

"Taking a step back, people can judge me and the government by our track record over the last year or two.

"All the facts and figures show that actually that those in the most vulnerable situations and on the lowest income got the most support from the government.