Martin Lewis flags cheapest fixes as energy bills jump 13%

The price cap will rise by 13% on 1 October, the second increase in six months and the highest level since January 2024. A typical household on direct debit will pay an extra £180 a year, Ofgem confirmed last week. That is a concrete number every homeowner can check against their own bills.

Martin Lewis, founder of MoneySavingExpert, has responded with a list of the cheapest fixed-rate tariffs available now. As reported by the Somerset County Gazette, Lewis highlighted deals from EDF, Octopus Energy and British Gas that fix prices for 12 months at rates 5–10% below the new cap. The cheapest fix, EDF’s Ensure Fixed, comes in at roughly £1,620 a year for a typical dual-fuel household, about £180 less than the October cap.

Who qualifies, and who doesn’t

Fixed tariffs are not available to everyone. Suppliers typically require a smart meter, a good payment history and sometimes a minimum credit score. Those on prepayment meters or with debt on their account may be excluded. Ofgem data from June shows that 4.2 million households are still on standard variable tariffs, many of whom could save by switching, but only if they meet the criteria.

The catch is timing. Fixing now locks in a rate for 12 months. If the cap falls again next spring, as some analysts predict, you will not benefit. Cornwall Insight forecasts a 6% drop in April 2025, which would wipe out most of the saving from a fix taken today. But if the cap rises further, you win. It is a bet on the direction of wholesale gas prices, which remain volatile due to geopolitical tensions and storage levels.

What it costs a typical 3-bed semi

Take a 3-bed semi using 12,000 kWh of gas and 2,900 kWh of electricity per year. Under the October cap, that household will pay roughly £1,800. The cheapest fix from EDF would bring that down to about £1,620, a saving of £180. But the fix comes with an exit fee of £50 per fuel if you leave early, so it is not a short-term play.

For homeowners considering eco upgrades, the calculation changes. A heat pump or solar panels can slash your usage by 40–60%, making the unit price less important than the total kWh consumed. The Energy Saving Trust estimates a typical heat pump installation costs £7,000–£13,000 after the Boiler Upgrade Scheme grant of £7,500. At current prices, that pays back in 7–10 years on gas savings alone, faster if you fix your electricity rate now.

Insulation first, tariff second

Martin Lewis’s advice is sound: compare tariffs, switch if you can fix below the cap, and set a calendar reminder to check again in 11 months. But for homeowners serious about reducing bills long-term, the order of operations matters. Loft insulation costs £300–£600 and saves £200–£300 a year, a payback of 1–3 years. Cavity wall insulation runs £600–£1,000 and saves £250–£400 annually. These measures improve your EPC rating by 1–2 bands, which can unlock cheaper mortgage rates under some lenders’ green products.

The Boiler Upgrade Scheme and the Great British Insulation Scheme both offer grants for low-income households. Eligibility checks take 10 minutes on gov.uk. For those who can afford the upfront cost, combining insulation with a heat pump and a fixed electricity tariff creates a triple lock against future price rises.

Households on standard variable tariffs should compare fixed deals now, before the October increase takes effect. The cheapest fixes close when wholesale prices move, so the window is narrow. Check your annual usage, compare at Ofgem-accredited sites, and decide by mid-September. If you are eligible for a grant, apply first: insulation reduces your kWh demand, making the fixed tariff even more valuable.