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Martin Lewis sends major warning to millions of Brits over energy bills(Image: ITV)
Money saving expert Martin Lewis has called the current energy bills “perverse” and “illogical”, warning millions of Brits that they will have to spend more in coming months. Just after Ofgem announced that the price cap of energy bills will be going up, Martin said on Good Morning Britain that the current way electricity and gas bills work is “perverse”.
He slammed the rise as “illogical”, explaining that while the government are pushing for more people to use electricity and not gas, the price of the former is rising, while the price of the latter will fall. “They want people to use more electricity and use heat pumps and get off gas,” he said, in an explosive rant.
“But what they’re doing is they’re making electricity more expensive and gas relatively cheaper.” He warned: “Energy bills are going to continue to go up.” Martin added that “it’s illogical” because “it’s not doing what they want it to do”.
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Martin Lewis has explained why the current energy bills are illogical(Image: ITV)
He explained that this is not because electricity and gas cost more themselves, but because of policy costs, which are additional costs added to bills to fund policies. This includes schemes such as the Energy Company Obligation scheme, which installs energy efficiency improvements for low-income households.
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Martin doesn’t think these costs should be scrapped, but explained that such schemes could easily be paid for by funds raised through “general taxation” and not doing so was disproportionately affecting the pockets of low-income households. “If you’re very very rich, your energy bills don’t increase proportionately by the amount you’re rich compared to somebody who has no money,” he explained.
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He added that the costs are disproportionately affecting low-income hosueholds(Image: ITV)
“So they’re relatively cheaper for you. They make up less of your income.” As such, when these costs are added to energy bills, it means poorer households are paying a larger percentage of their monthly pay checks to fund schemes that are supposed to help them.
“You just look at it and you go, ‘this just doesn’t make sense.'” Martin fumed. He was asked what he hopes to see in the budget and added: “We’re not in the ‘what do I want to see from the budget’ phase. We’re in the ‘what do I not want to happen that I think will happen’.
Ofgem announced on Friday (21 November) that a 0.2% rise of the energy price cap for the period covering January to March 2026. This change amounts to an increase of around 28 pence a month for the average dual fuel household.
