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Martin Lewis warns Brits over big energy bill shock in January – and two types of household will be worst hit

MARTIN LEWIS has warned some households will see their energy bills rise in January.

In his latest newsletter, the consumer champion explained how prepayment meter customers and those who pay on receipt of bill could see a small increase.

Millions of households will see their energy bills rise in January

Those who pay by direct debit may see a little change too.

It comes after Ofgem set the underlying price cap for January 1, 2023, to March 31, 2023 to £4,279.

The government introduced the energy price guarantee in October which means the average household on a dual-fuel tariff will pay around £2,500 a year.

This will rise to £3,000 a year from April, when the guarantee is extended.

But the changes to the underlying price cap from Ofgem and the amount of discount applied by the price guarantee means most people’s bills will change slightly.

And while the energy price guarantee unit rates won’t change for those paying by direct debit, some of them will for those on prepayment meters and paying on receipt of bills.

It means the average household on a prepayment meter will see their annual cost go from £2,559 to £2,579, a 0.8% increase.

Households who pay on receipt of bill will see their annual cost go from £2,715 up to £2,754, a 1.4% increase.

Martin said in the newsletter: “It will come as a surprise to many to see prices change in January.

“For most people the change will be trivial, but it is disappointing to see more substantial increases, with some on prepay meters seeing rises of 1%, which include most of the poorest in society.

“The bump up for those who pay in receipt of bills takes the premium for paying that way to more than 10% over direct debit – so while many like the extra control, it’s important to be aware that with typical bills from January you’ll pay £260 a year for it.”

It comes as families also tackle soaring inflation as the cost of fuel and food remains high.

Food inflation jumped to 12.4% in November from 11.6% the previous month as the price of eggs, meat, dairy and coffee continued rising.

The consumer price index (CPI) of inflation hit 11.1% in October, it’s highest level in over 40 years.

What help can I get with my energy bills?

If you’re looking for ways to save on your energy bills, there are a number of options available to you.

£400 energy rebate is being handed out to millions of households across the UK.

The payment has been split into six instalments to be made monthly between October this year and March 2023.

The two payments for October and November are worth £66 and £67 for December, January, February and March.

Plus, there’s a range of other cost of living payments being made depending on your circumstances.

Millions should have received both instalments of the £650 cost of living payment while a £300 pensioner cost of living payment is being made to millions too.

Plus, there was a £150 disability payment which was made to millions in September and October this year.

In the Government’s mini-budget in November a further batch of payments was announced by the Chancellor Jeremy Hunt.

If you’re not eligible for the cost of living payments you might be for the Household Support Fund.

It’s a central pot of money which has been allocated to councils who then decide how to distribute it and who to.

But that means whether you’re eligible and what you’ll get will depend on where you live.

Shropshire Council is giving out £180 to thousands of households, for example.

Plenty of energy companies offer customers grants if they’re struggling to pay for bills.

Companies that offer grants include Bulb, EDF, E.On, Octopus Energy, OVO and Scottish Power.

To find out more you can check out their websites. Their contact details are likely to be on your bill slips as well.

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