Energy bills are set to rise by 13% in July, causing concern for many households. However, Martin Lewis, founder of MoneySavingExpert, has clarified that this increase is not inevitable for everyone. In a clip from his podcast shared on TikTok, he sheds light on how millions of households have more control over their energy costs than they might realize.
Martin explained that the July rise only affects those on the default energy tariff, which is the standard tariff set by energy providers and regulated by the price cap. “If you’re on a fixed or special deal, you’re generally not subject to the price cap, so you won’t automatically face the 13% rise,” he said. Approximately 60% of households are currently on default tariffs, meaning they will experience the increase unless they take action.
For those on the default tariff, there is still an opportunity to avoid the rise. Martin highlighted that the cheapest fixed deals available right now are up to 3% cheaper than the current April price cap level. While 3% may seem modest, the real advantage lies in locking a low fixed rate before the price cap increases again in July, October, and remains high until around March 2027. “By locking in a fixed deal now, you can avoid multiple future price hikes and start saving immediately,” Martin noted.
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Martin also cautioned consumers to be vigilant when searching for better deals. Some comparison websites do not show the cheapest tariffs, meaning consumers might switch and still miss out on the best offers. He advises following his podcast guidance to navigate these pitfalls and identify the most economical tariffs.
Currently, the price cap stands at £1,641 annually for a typical dual-fuel household paying by Direct Debit. After a 13% rise in July, this is expected to reach around £1,849, with further increases likely. By securing a fixed tariff now that is slightly below the April cap, households can potentially save a significant amount over the next year compared to remaining on the default tariff.
Financial advice experts agree that Martin’s message is an important reminder: the July rise is avoidable for many. Most people accept energy price hikes as unavoidable, but switching to a fixed, cheaper tariff can protect against these increases. Time is running short as the July rise approaches, so households should act quickly to compare deals and lock in savings.
With energy costs expected to remain high through early 2027, Martin Lewis emphasizes that for the majority on default tariffs, accepting the price rise is optional — and switching tariffs is the key to controlling energy bills.