Martin Lewis on the best way to dodge the next energy bill hike

Ofgem will raise the energy price cap by £63 in October, the third increase this year. That adds roughly £5.25 a month to a typical dual-fuel bill, or about £63 a year. For a 3-bed semi using 12,000 kWh of gas and 2,900 kWh of electricity, the cap will land at around £1,923 annually.

Martin Lewis has weighed in, naming the best way to dodge the hike: fix your tariff now. As reported by the East Anglian Daily Times, Lewis points out that fixed deals are creeping back into the market after months of absence. Some are priced below the current cap, offering a rare chance to lock in savings before winter.

What Martin Lewis actually said, and what it means for your bill

Lewis’s advice is straightforward: if you can find a fixed tariff cheaper than the October cap, sign up. The catch is that most fixes are still 5–10% above the current cap. But with the cap rising again, a fix at, say, £1,850 could save £73 compared to the October cap of £1,923. That’s real money.

Yet the caveat: fixed deals often come with exit fees, typically £50–£75 per fuel. If the cap falls later (unlikely but possible), you’d pay to leave. Lewis recommends checking the total annual cost, not just the unit rate. Use a comparison site that shows the estimated yearly spend, not the p/kWh.

For homeowners, this is a tactical move. It buys time. But it doesn’t solve the structural problem: the UK’s leaky housing stock leaks money.

Why fixing your tariff is a stopgap, not a solution

The price cap is a political bodge, not a long-term strategy. Every time it rises, households on standard variable tariffs absorb the hit. Fixing delays that hit, but the underlying cause, energy inefficiency, remains.

A typical 3-bed semi loses 25% of its heat through the roof and 35% through the walls, according to the Energy Saving Trust. That means every unit of gas you buy, a quarter escapes through the loft. Insulation stops that. A heat pump, paired with good insulation, can cut heating bills by 30–50% compared to a gas boiler. Solar panels can shave another £300–£500 off the annual electricity bill.

The government’s Great British Insulation Scheme offers grants for cavity wall and loft insulation. ECO4 provides free upgrades for low-income households. Both are funded by levies on energy bills, you’re already paying for them. Claiming what you’re owed is the logical next step.

But… the process is slow. Installers are stretched. Applications can take months. Fixing your tariff now buys you the breathing room to get those upgrades booked.

Who qualifies, and who doesn’t

Lewis’s advice applies to anyone on a standard variable tariff, roughly 80% of UK households. Those on prepayment meters should check their supplier’s rates first; some are still above the cap. Homeowners with solar and a battery can already shift load to off-peak hours, but the tariff fix still matters for the grid import side.

Renters face a harder choice. They can’t install heat pumps or solid wall insulation without landlord permission. But they can switch tariffs, draught-proof windows, and use smart plugs to cut standby consumption. The price cap fix is their best short-term weapon.

Landlords should note: the government’s proposed minimum EPC C for new tenancies by 2030 will require upgrades. Fixing tariffs now doesn’t help with compliance. But installing insulation and a heat pump does, and it lifts the property’s EPC rating, which can boost rental demand and property value.

What to do before the October price cap rise

First, check your current tariff. If you’re on a standard variable, the October rise will hit you. Use a comparison site to see if any fixes are cheaper than the predicted cap. Lock in one with no exit fee if possible. If exit fees apply, calculate the break-even point: if you save £73 a year but pay £50 to leave, the net gain is £23, still worth it.

Second, book an energy audit. Your local council or the Energy Saving Trust can arrange a free home visit. They’ll identify draughts, missing insulation, and boiler efficiency. Then apply for grants: the Great British Insulation Scheme covers cavity wall and loft insulation for most homes. ECO4 covers more, including first-time central heating and heat pumps, but eligibility is means-tested.

Third, consider a heat pump. The Boiler Upgrade Scheme offers £7,500 off installation. Combined with insulation, a heat pump can cut heating costs by 40% or more. The payback period is 5–10 years, depending on your current system and insulation levels. After that, you’re insulated from gas price spikes permanently.

The October price cap rise is coming. Martin Lewis’s fix-tariff advice is the right short-term move. But the only way to dodge the next hike, and the one after that, is to make your home use less energy in the first place.