Martin Lewis urges UK households to take 4.8% 'safer bet' as households 'hit hard' by energy price surge

Martin Lewis urges UK households to take 4.8% 'safer bet' as households 'hit hard' by energy price surge The energy price cap is set to soar, hitting hard-pressed households in the UK Martin Lewis has called on hard-pressed UK families to take the 'safer bet' when it comes to energy bills. The money-saving expert is urging people to fix their energy tariffs ahead of a surge in prices. Household energy bills will see a sharp rise from tomorrow (Thursday, October 1), with the energy price cap going up by 4 per cent. This means that the price cap - the average energy unit rate and standing charge for people who pay by Direct Debit - will stand at £1,723 a year. Experts at Cornwall Insight are now predicting that the average dual fuel energy bill will rise by 16% to £1,999 a year on January 1, up by £276 on the level between October and December and the biggest rise since January 2023. Prices have skyrocketed since the US and Israel began strikes on Iran in February 2026. Ahead of the cap rise on Thursday, Mr Lewis wrote on Facebook: "FROM THUR. - On an energy fix: your electricity costs DROP 4.8% due to the scapping of elec VAT - On standard (Price Capped) tariff: your rate RISES avg 3.2% (without VAT cut it'd be 6.2%) "Cap's predicted to rise 21% more in Jan. So fixing's a safer bet www.cheapenergyclub.com." Should I switch? Most households in the UK are on a standard tariff, which is governed by the Ofgem price cap. It is important to remember that this does not limit how high your bill can go - it only limits standing charges and gas and electricity unit rates. While fixed deals lock in how much you pay over a set period of time - typically one or two years - standard tariffs vary depending on the price cap, which fluctuates every three months. And, if Cornwall Insight's predictions are to be believed, they are only going up - in the short term, at least. And with no immediate end in sight to the hostilities in the Middle East, and the amount of time it will take for prices to come down even after a peace deal is agreed, it is hard to see bills falling substantially any time soon. For that reason, it is little wonder Mr Lewis is urging people to fix their deals rather than following a standard tariff which is based on the price cap. "Earlier in the year, conflict in the Middle East led to the sharp 13% increase in the Price Cap in July, and a further 3.6% increase due on 1 October. The latest forecasts also predict another, massive, 21% rise from January," said Moneysavingexpert's Clare Casalis. "So for most on the Price Cap, if you fix now, you can avoid the upcoming hikes. "Right now, many of the cheapest fixes tend to be longer ones - 24-months or 18-months. These give you price certainty for longer. Yet today's rates are high, and may look less competitive in a year if (and that's a big IF) the Mid East conflict de-escalates. "So if you choose to go long, do also focus on low exit penalties which let you lock in for peace of mind, but with a get-out-of-jail cheaply card, if you want to ditch it for something cheaper later."