Martin Lewis attacks 'energy poll tax' keeping bills high but offers July 4 standing charges hope

William Morgan
·3-min read
couple look at energy bill
-Credit: (Image: Getty Images/Image Source)


During the cost of living crisis, households across the country have been forced to pay considerable daily charges to their gas and electricity providers, whether they use any energy or not. This adds hundreds to bills every quarter and punishes those who try to keep their energy expenses low by consciously limiting their energy usage.

Financial expert Martin Lewis has strongly criticised these standing charges, dubbing them an "energy poll tax" that continues following the severe fuel price increase that occurred after Russia's invasion of Ukraine in 2022. He explains that household bills are determined based on the energy price cap, rather than actual consumption.

After the release of the Labour manifesto, Martin Lewis went on X to elucidate what each significant party plans to do to mitigate this energy poll tax and offer a sliver of optimism. He declared: "I'm pleased now BOTH Labour and Conservatives have said the level of standing charges is too high", reports the Mirror.

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The Money Saving Expert founder has consistently been in discussions with the Government and rival parties on a wide array of subjects from problems with Carer's Allowance to how politicians can help households manage the cost of living crisis. It seems Mr Lewis could have had a hand in both major parties' offerings to the nation.

Martin Lewis has revealed that he's been in contact with senior figures from both major political parties regarding his campaign to reduce energy bills. He stated: "I've had very senior contact from both to say they've seen the campaigning I've been doing and will focus on it if elected.

"Eg. In today's Lab manifesto it says 'Too much of the burden of the bill is on standing charges and we will work with the regulator to reduce them.' Let's hope whoever wins delivers."

While no specific plans were shared about how this would be achieved, it was clear that any changes would require cooperation between politicians and regulators. This could potentially lead to a shift in the cost of energy, which has been a significant factor in the current cost of living crisis.

However, the outcome of the general election on July 4 could change everything, but whoever forms the new government, they could benefit from more of Martin Lewis' advice on protecting the most vulnerable from energy price shocks.

He continued: "I've also pointed out to both, that this needs to be a joint regulator/government move - as the 1.2 million high using vulnerable households (as Citizens Advice note) need protection if the burden's shifted to the unit rate. And that is outside regulator's power."

One follower expressed concern that energy companies might simply find another way to charge customers, asking: "What stops the energy providers from shifting it to usage? Then prices will stay the same or be worse surely? ".

To this, Martin responded: "It will be shifted to usage. That's always been the case. Yet currently it's an energy poll tax."

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