The same rule applies for rises later this year and in 2027
Energy bills are going up again in July and for most households the increas seems inebvitable. But Martin Lewis, founder of MoneySavingExpert, says the 13% rise is not unavoidable for everyone — and in a clip shared from his podcast on his official TikTok, he explained exactly why millions of people have more control over what they pay than they realise.
Martin was direct about who the July rise will and will not affect. “I’m afraid we now know the energy price cap is going to rise 13% in July,” he said. “But it’s important to understand, for many people, that price hike is voluntary.”
The reason comes down to what tariff a household is on. The price cap only dictates the rates paid by people on a standard default tariff — the one millions of households end up on by doing nothing. “If you’re on a fix or a special deal, you’re not price capped, so you’re not going to see that rise in most cases,” Martin explained. He estimated around 60% of households fall into the default tariff category, meaning the July rise will hit them automatically unless they act.
For those still on the price cap, Martin pointed to an opportunity that currently exists. “The cheapest fix right now is up to 3% cheaper than the current April price cap,” he said. That might sound modest, but the bigger picture is what makes it significant. With the cap predicted to rise 13% in July, climb further in October and stay elevated until around the end of March 2027, locking in now means avoiding all of those increases for the duration of the fix. “If you lock in a cheap fix right now, if you’re on the price cap, you are forestalling all those price hikes and you’re saving in the meantime,” Martin said.
He also had a practical warning for anyone who goes looking for a deal. Some comparison sites hide the cheapest tariffs, meaning people can go through the process of switching and still not end up on the best available deal. Martin said he covers how to navigate this properly in his podcast, including how to identify the best tariff and avoid the pitfalls that catch people out.
The current price cap sits at £1,641 a year for a typical dual fuel household paying by Direct Debit. A 13% rise in July would push that to around £1,849 according to current forecasts, with further rises predicted beyond that. For households that lock into a fix that is currently 3% below the April cap, the combined saving compared to staying on the default tariff through the predicted rises could be meaningful over the course of a year.
Financial aid experts Vettory added: “Martin’s point about the rise being voluntary is an important one that many people will not have considered. Most households accept energy price increases as something that just happens, but the option to lock in now and avoid the coming rises is real and worth looking into. Comparing deals carefully and making sure the cheapest tariffs are not being missed is the key step, and with July only weeks away the window to act is narrowing.”
With the July rise now confirmed and further increases predicted through to early 2027, Martin’s message is clear. For the 60% of households on default tariffs, the rise is coming unless something changes — and changing it is within reach.
