Money expert Martin Lewis has issued a critical alert regarding an "unprecedented" change to energy bills set to take effect on April 1, 2026, while cautioning households about a significant price surge expected later in the year. Speaking on The Martin Lewis Money Show Live, Lewis detailed that government policy adjustments will remove charges for energy schemes from bills, resulting in a notable reduction for consumers.
April Bill Cuts Explained
Lewis explained that this policy shift will lead to a 7-9 per cent decrease in energy costs for existing fixed-rate customers, a move he described as unprecedented. This reduction applies specifically to those already on fixed tariffs, not new agreements, offering immediate relief to many households. The change stems from the removal of various energy scheme charges, as reported by the Express, providing a temporary financial reprieve amid ongoing economic pressures.
July Price Surge Warning
However, Lewis warned that this relief may be short-lived. Due to the ongoing conflict in Iran, wholesale gas rates have spiked, prompting energy suppliers to withdraw their cheapest fixed deals. Analysts from Cornwall Insight forecast that Ofgem's price cap for the period from July to September could surge to £1,801 annually for typical households, representing a £160 increase from April's cap. This anticipated rise is driven by geopolitical tensions affecting global energy markets, potentially leading to higher bills for consumers.
Urgent Advice for Consumers
In response to these developments, Lewis urgently advised customers still on the price cap to secure a fixed rate immediately. He emphasized on social media platform X, formerly Twitter, that many of the cheapest fixes could disappear quickly as firms reassess their pricing strategies. Lewis highlighted that locking in a fixed rate now could provide savings of around 14 per cent compared to the current price cap, offering both financial benefits and peace of mind against future increases.
This dual scenario of April cuts and July hikes underscores the volatile nature of the energy market, with Lewis stressing the importance of proactive measures to manage household expenses effectively.
