Martin Lewis warns energy bills have ‘hardly dropped’ despite inflation falling | Personal Finance | Finance

Martin Lewis has warned Britons that they are not seeing the benefit of falling inflation reflected in their energy bills as they are paying the same compared to last year.

He commented on the latest inflation figures, with the rate falling significantly from 6.7 per cent for the year to September, down to 4.6 per cent in October.

Writing on X, he said: “Lower inflation is welcome, but there is one thing that is not being said about the October figure of 4.6 per cent today:

“The big fall in energy prices is being credited. But this time last year every house got a £66/month reduction from the Government. They don’t this year. That’s not excluded from inflationary figures.

“In practical terms, therefore, what homes pay for energy has generally barely fallen, so the gain that households feel will not really come.”

All households in England, Scotland and Wales received a £400 energy bill payment in six monthly instalments, from September 2022 to March 2023, with people in Northern Ireland receiving a similar one-off payment.

Under Ofgem’s current price cap, households pay an average of £1,834 a year for their energy, down from the previous price cap, when bills averaged £2,074 a year.

One person (@Ordibloke) responded to Mr Lewis’ tweet on X saying: “As a state pensioner, my expenses in order are rent, energy, then food.

“In the last 12 months, 15 percent, 50 percent and 15 percent increase respectively. How does today’s big announcement of 4.6 percent help me?”

Mr Lewis recently spoke about the Demand Flexibility Service, where consumers are paid to reduce their energy use during peak times.

There will be at least six test events for the scheme to save £3 per kilowatt hour payments, with plans for 12 test events in total.

Mr. Lewis said on his BBC podcast: “They pioneered it last year and it’s back this year. The aim is to balance supply and peak demand to reduce the need to burn fossil fuels. [power] plants.

“To do it, you need a smart meter and it needs to be set to take a 30-minute reading, but if you have a smart meter, most of them will be able to do that.”

He surveyed people who took part last year and found that most people received between £5 and £20, some received more than £20 and others were paid more than £50.

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