Martin Lewis has warned MPs that consumers are facing a “fiscal punch in the face” when the energy price cap rises next month.
The Money Saving Expert, known for giving financial tips and tricks to the public, gave a stark warning of the bill increases facing Brits this spring.
He told MPs: “About a year ago for somebody on typical use, and of course if you use more your bills are higher and if you use less your bills are lower, you would have been paying £800 on the cheapest fix.
“Right now there’s nothing cheaper than the price cap currently, which for somebody with typical use is £1,277.
“On April 1, people are going to feel a fiscal punch in the face when that goes up for someone on typical use to £1,971 that’s a £700 rise.”
He also said there was “very little” the government could do to mitigate bill increases of £1,300 next year except for more financial support.
With an expected rise again in October, he said you did not need to be the Money Saving Expert to work out the government’s £350 help is “not enough”.
He added: “It is worth remembering energy bills tend to be regressive. The difference in what the very highest users pay, the very richest pay, compared to what the poorest pay isn’t that big. It’s pretty flat. It’s almost a poll tax.
“For those people on lower to middle incomes, a £350 worth of help of which £200 pounds is questionable to cover a £1,300 pound rise. Well you don’t need to be the money saving expert to work out - no that is not enough.”
Households are to get up to £350 in cash to help with their energy bills this year, as part of a package announced by Chancellor Rishi Sunak.
More than £9 billion in state-backed loans will be made available to households in England, Scotland and Wales, to help soften the blow of rocketing energy prices.
Shadow chancellor Rachel Reeves has described the measure as “buy now, pay later” and accused Sunak of “gambling” because his scheme relies on energy prices falling.
Lewis’s latest intervention comes after he apologised if he had broken broadcasting rules during an interview with health secretary Sajid Javid on Monday’s Good Morning Britain.
Lewis, who was guest presenting the ITV breakfast show with host Susanna Reid, pointed out that people who use oxygen machines or electric wheelchairs will be severely impacted by rising energy prices.
He told Javid: “You don’t have to give me an answer, it’s not a question,” before Javid replied: “It’s a very straightforward yes. Absolutely, those are some of the most important people in our society and they’re exactly the kind of people we should do everything we can to support including from our department and the NHS.”
As the interview ended, Martin said: “Forgive me if I just broke the rules there.”
Susanna reassured him: “You are forgiven by the way. You’re allowed to have an opinion.”
“It was a campaigning call,” Lewis said. “I hope I didn’t break some broadcasting regulations by doing that and stepping over the line. But I do think it was important.”