Money Saving Expert founder Martin Lewis issued a warning in light of the energy price cap in January 2027 as he shared a graph which showed a concerning increase
Households fear the country may have reached “breaking point” as Money Saving Expert founder Martin Lewis shared an insight following the energy price cap rise this month.
The new figures increased on October 1 by 3.6% although homes could face a further increase as much as 16% in January 2027. This rise, forecast by consultancy Cornwall Insight, would affect millions of households on standard variable tariffs. It could see a typical dual-fuel household paying by Direct Debit shell out a staggering £1,999 a year.
Major suppliers such as E.ON Next and British Gas have projected even higher averages of between £2,065 and £2,080, according to Cornwall Insight.
Now Martin Lewis has shared his thoughts on the January Energy Price Cap, with commentators on X fearing the UK may have hit “breaking point” as a result of the punishing increases.
The 54-year-old wrote to his 3.2 million followers: “The news over the weekend is cementing the likelihood of around 20% or bigger rises in the energy Price Cap in January.”
He continued: “The graph shows UK natural gas prices (which strongly feeds into to our electricity price too) peaking again over the latest salvos in the Middle East and Ukraine conflicts.
“The dotted line and shaded area I’ve added into this Trading Economics graph show the assessment period for the January Cap (19 August to 17 November).
“It’s averaged over that period, so we’re now over half way through, and each high day bakes the average in higher.”
The graph, sourced from Trading Economics, illustrates a steady climb between May and June, followed by a slight dip in July. Then the forecast rises once more in August before surging dramatically above £204.07/thm by September.
Scores of followers expressed their alarm as the post accumulated 150,100 views in just over 24 hours.
One wrote: “Now compare it to the rest of the world! We [are] getting absolutely mugged off.” Another chimed in: “Please stop calling it a Price Cap, it’s anything but that.”
While a third commented: “So if you’re already on £300PCM you’ll be at £360PCM from January… The UK is absolutely fried!”
And a fourth posted: “Martin this cannot happen. The British public are well past breaking point.”
When will the next Price Cap change?
The Energy Price Cap increased by a considerable 3.6%, rising from £1,663 a year to £1,723 a year for a typical household paying by Direct Debit. While usage rates remain capped, this does mean that consuming more energy will still result in higher bills.
Each Price Cap period spans just three months, meaning the next adjustment is due on January 1, 2027. It is widely anticipated to rise again, largely owing to the continuing conflict in the Middle East.
The typical price of the Cap, calculated on the basis of average usage, has varied since it was first introduced in 2019. Nobody paid the full amount under the Price Cap between October 2022 and June 2023, as bills were reduced under the Energy Price Guarantee (EPG) scheme.
How can I keep bills down?
Adjust boiler flow temperature: If you have a combi boiler, turning down the flow temperature to between 55°C and 60°C can save you around 10% to 15% on gas.
Draught-proof your home: Seal gaps around windows, doors, keyholes, and letterboxes to stop heat from escaping.
Use radiator reflector foil: Place foil panels behind radiators on external walls to reflect heat back into your rooms.
Lower your thermostat: Turning down your thermostat by just 1°C can save you around £90 to £100 per year.
