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News UK Home News Martin Lewis calls for cost of living plan now as £4,266 bills ‘unaffordable for millions’ Consumer expert interrupts holiday to make urgent plea for action
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Subscribe Already subscribed? Log in 'People will be going hungry': Gordon Brown calls for urgent action on cost of living crisis' Your support helps us to tell the story From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
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Your support makes all the difference. Close Read more Martin Lewis has made a desperate call for an urgent action plan to be made following Ofgem ’s latest price cap increase.
The Money Saving Expert founder posted a Twitter thread calling on the “zombie” governement to “wake up sooner” than 5 September, when the new prime minister will be chosen.
Mr Lewis was responding to “tragic news” that energy bills for the average UK household are on course to surge to a devastating £4,266 a year in January.
Martin Lewis has made a desperate call for an urgent action plan to be made following Ofgem’s latest price cap increase (PA Archive) That will come after a rise to more than £3,500 in October as the cost-of-living crisis deepens throughout this year and into 2023, according to figures from Cornwall Insight, an energy consultancy.
Ofgem is set to put the price cap at £4,266 for the average household in the three months from the beginning of January.
The consumer expert said “these amounts are unaffordable for millions” adding: “People’s livelihoods, mental wellbeing and in some cases very lives depend on this.”
Breaking down the figures, he wrote: “The Jan figure equates to 45% of the full new state pension, and a higher proportion of the old one. The rise alone on the Jan prediction, from when the help was first announced in May, is roughly £1,400/yr.”
So far, the government has promised £400 to every household, and extra help for the more vulnerable, but Mr Lewis said this falls well short of what is required.
“That rise alone swallows up not just £400 help for all homes, but even the £1,200 for the poorest.
“This will leave many destitute,” he warned. “Tax cuts won’t help poorest incl many elderly & disabled who’ve higher usage Cutting green levy’d be just tiny sticking plaster on a gaping wound.”
It comes as CBI direct-general Tony Danker urged Liz Truss and Rishi Sunak to get together now to agree on a plan to ease the “terrifying” price rises.
“I think they should agree on the principles, given they disagree on the mechanics,” Mr Danker said.
The money saving expert founder concluded his thread with a plea to the Tory leadership candidates: “They are all in the same party, let’s call on them to come together for the good of the nation rather than personal point scoring.”
Follow the latest on the cost of living crisis here .
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