Martin Lewis warns extra 1.7m face fuel poverty if Jeremy Hunt raises energy prices in April

Freezing prices until summer ‘practical and fair’, says consumer champion

Martin Lewis has urged Jeremy Hunt to halt plans to raise energy bills in April as he spoke out about the “frightening” rise in fuel poverty during the cost of living crisis.

The consumer champion has written to the chancellor to warn that 1.7 million people could be pulled into hardship if he does not freeze prices in the spring.

Mr Lewis said pushing back the looming hike the energy price guarantee (EPG) would be both “practical and fair” and help people survive until bills begin to come down later in the year.

Mr Hunt has refused to budge in raising the subsided cost from £2,500 to £3,000 a year for the average household in April, though the most vulnerable will get extra help.

“Postponing the increase is a practical and fair decision, with household energy bills already double what they were the prior winter,” the money-saving expert wrote to Hunt in a letter seen by The Guardian.

“Crucially, the damage to people’s pockets and mental health of another round of energy price rise is disproportionate,” Mr Lewis said – describing the rise in fuel poverty as “frightening”.

The number of households in fuel poverty – those whose energy costs pushing them below the poverty line – will rise from 6.7 million to 8.4 million in April, National Energy Action has estimated.

Urging action now, Mr Lewis added: “This cannot wait until the budget – in practice, energy firms will need to know much sooner if the planned rise isn’t happening on 1 April, or they are bound to have to communicate to customers that it is coming.”

Labour has called for April’s rise in the EPG to be halted, with the ongoing subsidy funded by an expanded windfall tax on the profits of the energy giants.

Mr Lewis said the current level of EPG subsidy may only be required until July, since the underlying energy price cap which controls costs looks like it is set to become cheaper.

The energy price cap – set by Ofgem rather than the government – might drop below the £3,000 mark as early as April, the boss of the regulator said last month.

Jonathan Brearley said that it was “possible” that falls in the wholesale cost of gas and electricity could mean that bills would fall below that level for the average household.

However, it more optimistic than recent projections from analysts at Cornwall Insight, who has forecast the price cap would still have to top £3,200 in April before falling significantly in July.

Energy experts at the Resolution Foundation have predicted that the typical annual energy bill will be £2,400 next year (2023-2024), down from its previous forecast of around £3,000.

Chancellor Jeremy Hunt under pressure over energy costs (PA Wire)

Meanwhile, Mr Brearley has issued his support for a new “social tariff” for struggling families, which would mean that less well-off households pay less for the energy they use.

But the Ofgem boss is also under pressure over the prepayment meter scandal has seen hundreds of thousands of vulnerable Britons forced to switch over to the more costly system.

The government is facing calls for an inquiry into how energy companies have been able to use debt agents to force their way into the homes so prepayment meters could be installed for those struggling to pay their bills.

Former Labour prime minister Gordon Brown called for Mr Brearley to resign, accusing him of failing to protect customers, some of whom have been pushed into the hands of loan sharks.

Writing for The Independent, Mr Brown said Ofgem and the government had “failed dismally to properly monitor and expose utility companies and their debt agents”.