Advertisement
Social Justice

Martin Lewis energy price cap calculator lets you see how much you’ll be paying in bills this winter

The money saving expert said the energy price cap rise of 80 per cent is a “catastrophe”.

Money saving expert Martin Lewis has launched a new calculator to help people find out how high their bills will be when the energy price cap rise comes in. 

The energy price cap rise was announced on Friday by regulator Ofgem, with a typical household bill set to rise from £1,971 to £3,549 – an increase of 80 per cent.

The cap is a limit on the price energy companies can charge. Electricity will rise on average from 28p per kilowatt per hour(kWh) to 52p from October-December. The price of gas will more than double, rising from 7p per kwh to 15p. 

Subscribe to The Big Issue

From just £3 per week

Take a print or digital subscription to The Big Issue and provide a critical lifeline to our work.

The new calculator developed by Money Saving Expert, headed up by Martin Lewis, lets you input your yearly gas and electricity usage and the region you live in, to give an estimation of the cost from October 1.

If you’re unsure of your annual energy use, the calculator allows you to put in how much you are usually charged and will use that to make its estimation. 

Use the calculator here.

Advertisement
Advertisement

“This is not catastrophising, this is a catastrophe” Lewis told BBC news in response to Ofgem’s announcement. “I am begging, I’m praying, I’m pleading that there is more government help for this winter (so that) people will not die because of this, this winter.”

“I am seeing such terrible panic from people out there saying: ‘How will I afford to pay my bills?’” he continued. 

Your support changes lives. Find out how you can help us help more people by signing up for a subscription

With a price cap of £3,549 from October and another rise likely in January, Torsten Bell, chief executive of the Resolution Foundation, has said this leaves Britain “on course for a winter catastrophe unless significant help is provided”.

National Energy Action has calculated that 4.4 million more UK households will be in fuel poverty this October compared to the same time last year. 

Households that have to spend 10 per cent or more of their income on energy are considered to be in fuel poverty.

Stop Mass Homelessness

Help us stop mass homelessness

Unless we act, the UK is facing a homelessness crisis 
this autumn.

British Gas recently pledged 10 per cent of profits to help its poorest customers pay their energy bills, but fuel poverty campaigners say the offer is a mere “drop in the ocean”.

The government has announced £400 in support for each household starting from October to help with the soaring costs, alongside an additional £324 for low-income households.

Six million disabled people will also get a £150 cost of living payment, though charities are warning that it won’t go nearly far enough to cover the additional costs of energy bills. For many disabled people must use additional energy to run health, medical or mobility equipment, cutting back isn’t an option.

Lewis has calculated that even on top of the support already announced by the government, over the winter six months alone “a typical household will have to find a further £880”. Energy prices aren’t expected to drop substantially even after that, he continued, with high rates likely lasting until at least the end of 2023.

Get the latest news and insight into how the magazine is made by signing up for the Inside Big Issue newsletter

With the full new state pension set at £9,600 per year and the older one at £7,400 per year, an additional £880 will be impossible to find for some pensioners, many of whom may be forced to turn off their heating all together.

Speaking to Liz Truss and Rishi Sunak, Lewis begged them to “bridge that gap” in funds, else “the physical and mental health risk to millions is unthinkable”.

Former prime minister Gordon Brown has called on the government to introduce an emergency budget to tackle the crisis in a campaign backed by the Big Issue. He has said the energy price cap should be frozen and energy firms should be re-nationalised as a last resort.

Don’t Pay UK, the campaign group calling for people to boycott their energy bills, is set to hold its first protest outside Ofgem’s London office on Friday.

Advertisement

Bigger Issues need bigger solutions

Big Issue Group is creating new solutions through enterprise to unlock opportunities for the 14.5 million people living in poverty to earn, learn and thrive. Big Issue Group brings together our media and investment initiatives as well as a diverse and pioneering range of new solutions, all of which aim to dismantle poverty by creating opportunity. Learn how you can change lives today.

Recommended for you

Read All
Teenagers are having to provide for their families as the cost of living crisis hits
Cost of living crisis

Teenagers are having to provide for their families as the cost of living crisis hits

Labour would bring in free breakfast clubs at every primary school in England
Childcare

Labour would bring in free breakfast clubs at every primary school in England

Child poverty in the UK: the definitions, causes and consequences in the cost of living crisis
Child poverty

Child poverty in the UK: the definitions, causes and consequences in the cost of living crisis

Anti-poverty organisations demand 'direct support' for UK's poorest households
Social Justice

Anti-poverty organisations demand 'direct support' for UK's poorest households

Most Popular

Read All
How much will the Queen's funeral cost?
1.

How much will the Queen's funeral cost?

The internet's best reactions as Kwasi Kwarteng cuts taxes and lifts the cap on bankers' bonuses
2.

The internet's best reactions as Kwasi Kwarteng cuts taxes and lifts the cap on bankers' bonuses

From benefit claimants to bankers: Here’s what the mini-budget means for your pay packet
3.

From benefit claimants to bankers: Here’s what the mini-budget means for your pay packet

5 ways anti-homeless architecture is used to exclude people from public spaces
4.

5 ways anti-homeless architecture is used to exclude people from public spaces

To mark our new Arctic Monkeys exclusive interview, we’ve picked out some of our best band and musician interviews from the past, featuring Arctic Monkeys (2018), When Jarvis met Bowie, The Specials, Debbie Harry and more. Sign up to our mailing list to receive your free digital copy.