Martin Lewis warns scale of soaring energy bills is dangerous and depressing

Consumer champion Martin Lewis has said the consequences of the soaring energy bills in the coming months is dangerous and depressing as the cost of living crisis worsens.

Regulator Ofgem announced a 54% rise on the energy cap from 1 April, which is set to increase energy costs for the average household by nearly £700 a year.

Following an appearance on ITV1's This Morning, Lewis tweeted: “My heart just sank doing my @thismorning phone in just then - as it does almost every time I hear 'energy bills' right now.

“So many people understandably unable to process the scale of the increases and unable to meet the price. It is depressing and dangerous.”

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Lewis advised families struggling to pay for increased energy costs from next month to speak to their supplier. "If you can't afford to pay, speak to them. They can't cut you off,” he said.

Real household incomes across Britain could also fall by 4% for working age people in the financial year 2022 to 2023, marking the biggest squeeze since the mid-1970s, according to the Resolution Foundation’s Living Standards Outlook for 2022.

According to estimates from researchers, the real incomes drop would represent a fall of £1,000 per household for non-pensioners – a scale of decline that would usually be associated with recessions.

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The Bank of England forecasts inflation will hit at least 7% in April.

At the same time, Universal Credit payments are due to increase by just 3.1%.

According to the Child Poverty Action Group, this will leave families with children on Universal Credit around £570 a year worse off on average.

Watch: Martin Lewis struggles to help caller with her energy bill

And as the ongoing crisis in Ukraine threatens to destabilise the global economy yet further, Lewis posted three tips in a video on TikTok to help households worried about increasing energy prices.

For prepay users

Lewis advised prepay users they could pay a cheaper rate for slightly longer if they max out their top-up in March.

He said: "Ofgem has confirmed you get the rate on the day you top up not when you use energy.

"Now that means if you max out your top-up in March before the rate goes up, that's what you'll get even if you then use that energy in April."

For Direct Debit users

Lewis told Direct Debit users to carry out a meter reading immediately and then again on 31 March.

By doing this, he hoped customers could clearly see what they’re currently paying so they don’t overpay and when prices go up in April.

Lewis added: "You'll draw a line and tell the energy company, all this energy I've used should be at the cheap rate."

Council tax rebate

He also had advice on how to get a £150 rebate on council tax bills by urging people to set up a direct debit.

"All those in bands A to D council tax will get a £150 rebate to help with energy costs,” he said. "Well, for the scheme, we're being told you will get the money automatically paid into your bank account, as long as you pay council tax by direct debit."

To receive the rebate, customers must contact their council to set up a Direct Debit.

Chancellor Rishi Sunak previously announced a £9 billion package, including a one-off £200 discount to all energy bill payers that will be recouped by annual payments of £40; a £150 rebate on council tax bills; and £144 million to councils to support vulnerable households.