Martin Lewis: Energy price cap to rise by 51% on 1 April - should you fix now?

RFB_2

spot1034 said:

QrizB said:

donny-gal said:

It's not the comfort, but the risk of fixing and the. The Government coming up with a "rescue package", and paying over the odds.  DG

I'm not at all convinced that this government is going to come up with a rescue package. The best I'm hoping for is something similar to the Warm Homes Discount to help the lowest paid.

Can you be sure though? I don't agree, I think allowing price hikes of 50% or more will be seen as politically unacceptable, and particularly given the situation the government is in right now. However, I don't know any more than you or anyone else, but given that we're likely to hear more in the first part of February, surely it makes sense to wait and see?

They have already solved the worry of increasing prices by fixing the TV licences fees

Speaking in the House of Commons on Monday, Ms Dorries said the government could "not justify extra pressure on the wallets of hardworking households".

One months predicted 51% rise in energy prices will far exceed the cost in licences that the BBC were asking for.and any other rescue package the government might come up with will be too little to make a significant difference to those already struggling to make ends meet

Cardew

QrizB said:

donny-gal said:

It's not the comfort, but the risk of fixing and the. The Government coming up with a "rescue package", and paying over the odds.  DG

I'm not at all convinced that this government is going to come up with a rescue package. The best I'm hoping for is something similar to the Warm Homes Discount to help the lowest paid.

However the Warm Home discount is not funded by the Government, it is funded by the energy companies who in turn increase their prices to customers.

It is simply 'robbing Peter to pay Paul'.

QrizB

Cardew said:

QrizB said:

donny-gal said:

It's not the comfort, but the risk of fixing and the. The Government coming up with a "rescue package", and paying over the odds.  DG

I'm not at all convinced that this government is going to come up with a rescue package. The best I'm hoping for is something similar to the Warm Homes Discount to help the lowest paid.

However the Warm Home discount is not funded by the Government, it is funded by the energy companies who in turn increase their prices to customers.

It is simply 'robbing Peter to pay Paul'.

It's a way for better-off consumers to subsidise less-well-off ones. In the absence of a magic money tree that's how all government assistance works.

wittynamegoeshere

I'm one of the many in the "squeezed middle".  Not poor enough to live off "benefits", not rich enough that I don't care about paying bills.  I'm very worried that the govt are going to target those who already depend on the state and will ignore those who support themselves.

It's likely that this will shift many who aren't in poverty into it.

Also, and of far more interest to the govt, it's pretty much certain that if everyone's bills rise by £50+ per household then this will detrimentally affect everyone's spending and, perhaps more importantly, sentiment, and will tip what is already a fragile post-covid, post-brexit economy into a certain recession/depression.

RFB_2

QrizB said:

Cardew said:

QrizB said:

donny-gal said:

It's not the comfort, but the risk of fixing and the. The Government coming up with a "rescue package", and paying over the odds.  DG

I'm not at all convinced that this government is going to come up with a rescue package. The best I'm hoping for is something similar to the Warm Homes Discount to help the lowest paid.

However the Warm Home discount is not funded by the Government, it is funded by the energy companies who in turn increase their prices to customers.

It is simply 'robbing Peter to pay Paul'.

It's a way for better-off consumers to subsidise less-well-off ones. In the absence of a magic money tree that's how all government assistance works.

But if the energy companies can't raise the money from the better off customers due to the price cap and the price cap is less than wholesale prices where is the money to come from.

QrizB

RFB_2 said:

QrizB said:

Cardew said:

However the Warm Home discount is not funded by the Government, it is funded by the energy companies who in turn increase their prices to customers.

It is simply 'robbing Peter to pay Paul'.

It's a way for better-off consumers to subsidise less-well-off ones. In the absence of a magic money tree that's how all government assistance works.

But if the energy companies can't raise the money from the better off customers due to the price cap and the price cap is less than wholesale prices where is the money to come from.

In the specific case of the Warm Homes discount that Cardew and I have mentioned, it is part of the "policy costs" element and factored into the price cap. I can't comment on any hypothetical future assistance scheme.

RFB_2

QrizB said:

RFB_2 said:

QrizB said:

Cardew said:

However the Warm Home discount is not funded by the Government, it is funded by the energy companies who in turn increase their prices to customers.

It is simply 'robbing Peter to pay Paul'.

It's a way for better-off consumers to subsidise less-well-off ones. In the absence of a magic money tree that's how all government assistance works.

But if the energy companies can't raise the money from the better off customers due to the price cap and the price cap is less than wholesale prices where is the money to come from.

In the specific case of the Warm Homes discount that Cardew and I have mentioned, it is part of the "policy costs" element and factored into the price cap. I can't comment on any hypothetical future assistance scheme.

So  the Price cap might need to rise by, say, 55% in order to fund a more generous Warm Homes Discount

Luna29412

Hi  I am currently with EON Next at a rate of Elec - 17.14 k Wh Gas- 3.20 kWh.  Standing rates of 8.40 for E and G.  This is due to end mid Feb.

EON have offered a 1 year fix with no exit fees at a rate of E 26.70 and G 5.52 with standing charges of 42.3 per day.

The direct debit will go up by £50 per month is still a big hike but is this likely to be less than post April.  Not sure whether to fix now or not.

Any advice gratefully received.

QrizB

RFB_2 said:

QrizB said:

In the specific case of the Warm Homes discount that Cardew and I have mentioned, it is part of the "policy costs" element and factored into the price cap. I can't comment on any hypothetical future assistance scheme.

So  the Price cap might need to rise by, say, 55% in order to fund a more generous Warm Homes Discount

The cap is already forecast to rise by 60%.

The current WHD is around £7 on the price cap, roughly 0.5% of the total. If the extra WHD was double the existing one, it would add £14, 1% more, to the cap.

bristolleedsfan

RFB_2 said:

QrizB said:

RFB_2 said:

QrizB said:

Cardew said:

However the Warm Home discount is not funded by the Government, it is funded by the energy companies who in turn increase their prices to customers.

It is simply 'robbing Peter to pay Paul'.

It's a way for better-off consumers to subsidise less-well-off ones. In the absence of a magic money tree that's how all government assistance works.

But if the energy companies can't raise the money from the better off customers due to the price cap and the price cap is less than wholesale prices where is the money to come from.

In the specific case of the Warm Homes discount that Cardew and I have mentioned, it is part of the "policy costs" element and factored into the price cap. I can't comment on any hypothetical future assistance scheme.

So  the Price cap might need to rise by, say, 55% in order to fund a more generous Warm Homes Discount

Not  necessarily https://news.sky.com/story/energy-crisis-three-options-left-to-insulate-households-from-50-increase-in-bills-12518648
"The existing cost, along with any increase, will have to be stripped out of bills and covered by general taxation"