Martin Lewis shares 'simple option' to save money 'immediately' on energy bills

Ofgem has confirmed household energy bills are to rise again from January 1 as it announced a 1.2% increase to its price cap. The regulator said the increase would see the typical bill for a household in England, Scotland and Wales increasing from £1,717 to £1,738-a-year, which is around £1.75-a-month.

Money Saving Expert Martin Lewis has issued advice as the energy price cap is set to rise. In a video shared to his social media accounts he made clear everyone who is on a standard tariff will be impacted by the change. Only those who have chosen to be on a fixed or a special tariff are not affected by the energy bill rise.

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Martin said: "If you haven't chosen your tariff or if you've come off a fix and done nothing, you are on the standard tariff of your firm and that is Price Cap. So this affects price."

He continued: "Over the next 12 months, on average, current predictions are you pay a higher rate than you currently do because that's important for contrasting it to the main simple option that you can take which is fixing."

The money guru gave further insights into how you could save money as the changes take hold. He added: "If you stay on the Price Cap, the cheapest fix right now is 5% less than current rates.

"So if you fix, you can save immediately and if the prediction is right you will continue to save over the next year." He highlighted a guarantee from this is your price will not rise within the next year.

The 52-year-old told viewers the "simple option" is getting a cheap fix by going onto a comparison site as prices depend on what you use and where you live. Martin Lewis has been an advocate for reducing standing charges calling them a ''moral hazard'' as people could be paying over £300 pound a year even if they do not use any energy.

The change to energy bills comes as millions of pensioners are facing a winter with less support, after the Government decided to scrap winter fuel payments for those who do not receive pension credit or other benefits. About 10 million pensioners will miss out on the payments of up to £300 this year.