On his ITV1 Martin Lewis Money Show, the consumer expert said: “We’re about to see something virtually unprecedented happen in April, on the back of the budget.”
He then explained that most households are on the Energy Price Cap, so the government can give them the promised £150 off an average energy bill by lowering the cap accordingly: “The first thing to understand is, if you’re on a fix, when you come off a fix, if you do nothing, you go into the energy price cap, which I call the energy pants cap, because it is pants.
“Two thirds of you are already on the price cap.”
The energy price cap went up last week, on the first of January, but it looks likely to drop by up to 6.5% in April, partly to allow for this £150 cut.
This April will see an unprecedented change in energy bills, so if your fix is ending, or you’re on a Price Cap tariff should you fix now? Let me take you through it…
Courtesy of @itvMLshow, watch the full ‘reboot your finances for 2026’ episode on https://t.co/mP3PGLKW7H pic.twitter.com/htaocWbS8d
— Martin Lewis (@MartinSLewis) January 8, 2026
Martin added: “You’ll remember, in the budget, they said energy bills will come down £150 on a typical bill. What’s really going to happen is your unit rate on electricity will come down by about 3.5 pence, and your gas unit rate will come down by about 0.35 pence.”
He continued: “What really matters, of course, is how does that compare to the cheapest fixes on the market?
“The current cheapest fixes are around 15% below the current price cap.
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“The whole point of a fix is your rate is fixed. But we’re about to see something virtually unprecedented happen in April, because on the back of that budget announcement, I spoke to Ed Miliband an hour afterwards and said, ‘What about all those people are on fixes? You can’t leave them loose because you know otherwise, you’re totally messed up the entire marketplace’. And he said, ‘Well, we’ll talk to firms and say they should pass on the fix’.”
Martin then explained there’d been “quite a lot of push” as the government told energy companies they should pass the £150 saving to fixed rates.
“Most firms will be doing so, and they will be doing so on the first of April,” he added. “So at that point, what we’re actually going to see is something a bit more like this. Fixed rates are going to come down.”
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