Martin Lewis’ 5-minute hack may prevent £400 earlier than power value cap rises

On Feb 26, 2025

Martin Lewis has issued a warning to millions of Brits who are on the energy price cap to warn them that they could be paying hundreds more than they need to be

14:57, 26 Feb 2025

The episode coincided with the announcement that the energy price cap will jump by 6.4% starting April 1(Image: ITV)

Martin Lewis, the money-saving guru, came to the rescue of a thankful fan by helping them slash a whopping £454 off their bills with a nifty five-minute trick that’s a cinch for most people to pull off. On The Money Show, he demonstrated how switching energy to a fixed tariff could lead to massive savings, using an audience member as a live example.

The episode coincided with the announcement that the energy price cap will jump by 6.4% starting April 1. One viewer shared his concern about the hike affecting him and his partner, seeking advice on mitigating the blow, reports the Express.

Lewis advised: “You want to get off of the price cap because the fixed rates are so much cheaper than the energy price cap. The first thing is if you fix, you get peace of mind and you get certainty. You can get up to 5% off at the moment compared to the current price cap and it is worth noting that there are a couple of comparison sites that have exclusive deals at the moment.”

Martin Lewis encouraged viewers to switch to fixed rate energy consumption(Image: (Image: ITV))

He continued: “Most of the best fixes at the moment do not require you to have a smart meter so do not let that put you off. The biggest message tonight though is you’re probably going to do a comparison and it is probably going to tell you that you won’t save much. That is because the saving is compared to the current price cap, that price cap is going up 6.4% in April. So if it says £20 or £30 in reality you are probably talking £100.”

An audience member who tested out a savvy financial move shared that they managed to slash a whopping £454 off their annual energy bill by switching to a fixed rate. The energy price cap, rolled out in 2019, sets a ceiling on what providers can charge customers for gas and electricity.

Reviewed every quarter by the watchdog Ofgem, this week’s hike is the latest in a sting of increases, now risen for the third time on the bounce. The turmoil of Ukraine’s conflict is the culprit Ofgem pointed to for energy snags and reduced flow, as it declared gas and electricity prices will balloon by another £111.

Martin Lewis Money showed a simple hack to save energy consumers hundreds of pounds(Image: (Image: ITV))

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The government said: “In practice, this rise will mean an increase of around £9 per month for a typical household over the next three months.”

This bump means the average home is coughing up £1,849 for energy yearly. That’s a hefty 6.4% leap, throwing household bills a stonking £600 above what they were three years ago – all thanks to Putin’s invasion of Ukraine. The government website added that energy prices are rising because “international gas prices have risen, bringing British energy bills up with them”.

It continued: “That’s because the price we pay for energy in the UK is set by gas prices on the global market, over which we have no control. As a result of recent events that have affected the market, which the whole of Europe is dealing with, wholesale gas prices covered by the period of this price cap are around 15% higher than they were in the period covered under the previous price cap. This is comparable to the rise in prices across Europe.”