Money-saving expert Martin Lewis has warned that energy bills are set to rise again in April, with the energy price cap expected to increase by up to £100.
As millions of households brace for higher costs, Lewis has criticised the current energy pricing system, calling it “broken” and urging the government to introduce a social tariff to protect vulnerable consumers.
With further energy price rises predicted later in the year, the debate over fair energy pricing is more urgent than ever.
Energy price cap set to rise in April
Households across the UK are facing yet another increase in energy costs, with the energy price cap predicted to rise by up to £100 in April 2025.
Martin Lewis, the founder of MoneySavingExpert, has warned that the increase is now almost certain. Speaking on Good Morning Britain, Lewis explained: “There’s virtually no chance now of it not rising. The only question is how much the bill is going to go up.”
He highlighted that predictions from major energy suppliers suggest a rise between 3.3% and 6.2%, translating to an increase of £60 to £100 for the average household.
‘The whole market is broken’ – Lewis criticises energy pricing system
Lewis took to social media to criticise the current energy pricing system, calling it “turgid” and claiming it allows companies to charge the maximum permitted under the cap without offering competitive deals.
Posting on X (formerly Twitter), he wrote: “The price cap isn’t set by firms, they aren’t increasing it, it’s set by the regulator. It’s a turgid system (that was pushed on the regulator by a past govt) and it’s allowed firms to price to the max of the cap without pushing them hard enough to offer cheaper deals.”
He also pointed out that while energy suppliers are often blamed for high bills, the real issue lies with energy generation and government regulation: “The real excess profits aren’t made by energy retailers… but by the generators who aren’t regulated by Ofgem.”
Martin Lewis calls for a social tariff to protect vulnerable customers
In a plea for urgent reform, Lewis reiterated his long-standing campaign for a social tariff – a discounted energy rate for those on low incomes or in vulnerable situations.
He argues that the current system fails to protect the most at-risk households. A social tariff would cap prices for eligible customers, ensuring they pay a fair and manageable amount for essential energy use.
This model has been used successfully in other sectors, such as broadband and water, where lower-income households receive discounted rates. Lewis has repeatedly called on the government and Ofgem to implement similar protections in the energy market, but so far, no major changes have been made.
With energy costs rising yet again, the debate over fair pricing and consumer protection is intensifying. Whether policymakers will act on Lewis’s calls for reform remains to be seen.
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