Cost of living: Martin Lewis predicts 'civil unrest' over bills
We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info
The money saving expert spoke of the “cataclysmic issue” of the soaring cost of living crisis, urging for more Government support. He warned of a “very bleak winter” for Britons as prices are set to increase to more than £3,200.
He told listeners: “Back in April, bills went up over 50 percent, taking someone on a typical bill to £1,971 a year.
“In May, Ofgem predicted that in October, the price cap would rise to £2,800.
“That was the amount that Rishi Sunak, the then Chancellor, used to decide this £400 for everyone and up to £1,200 a year energy help.
“The prediction for October that’s just come out today [July 8] is that we’re going to see a rise of – I feel sick saying it – 64 percent, taking a typical bill to £3,244.
“It will go up again by four percent in January, a slightly looser prediction, to £3,360.
“And while previously we thought it would then start to drop the next April, we now think it will probably be flat the next April.”
Every UK household is to receive the £400 cash boost as part of a £15 billion Government package, which includes other support for people on low incomes.
But Mr Lewis warned that the spiking prices are outpacing the support payments.
He said: “The rise in the prediction alone from the May period when the Chancellor set the help package, is £450, which is bigger than every household was going to be given then.
“To give you one more statistic that really nails this – somebody on a typical state pension gets around £9,500 a year.
Pensioners could secure 10 key freebies to help with rising costs [INSIGHT]
Retirement and me: Woman, 67, furious at state pension age changes [EXCLUSIVE]
Pensioner loses £10,000 in scam and warns others about WhatsApp scam [WARNING]
“£3,244 is a third of that. This isn’t the mortgage, this isn’t the rent, this is the energy bill alone – is likely to be bigger than a third of a state pension, which means that the help packages that were in place are no longer fit for purpose.
“We need a Government active, educated with ministers who have had time to get hold of their brief as soon as possible.”
Mr Lewis shared the news of the 64 percent hike going into the winter on Twitter.
He said he had seen many angry responses to the news, with some saying they would resist the price hikes.
He said: “Most people are saying, we’re going to stop paying.
“Some are using the word ‘riot’, others are talking about, this simply cannot go, this has to be helped.
“There was vociferous anger and it will get worse when we get the formal announcement in August and even worse on October 1.”
Mr Lewis worked with the chief executive of energy firm Ovo, to organise a meeting with the bosses of five energy firms, including British Gas, E.ON, EDF, Ovo and Octopus.
The energy bosses resolved to work to improve the situation by reducing standing charges and provide more help for households struggling with energy debt.
He said this was “faster” to organise without involving the Government or working with industry regulator, Ofgem, at the moment.
He warned: “We’re not getting the solutions from the Government.
“The only way we’re going to see lower bills than £3,244 or people being helped, so that we don’t have people having to choose between starving and eating this winter, is by governmental action.”
He said that action is desperately needed before millions of Britons fall into poverty.
He said: “This is a genuine, urgent emergency.
“Millions of households will be forced into poverty unless we act more.
“It will be devastating for people. This is way more than politics.”
Source: Read Full Article