Martin Lewis Advises Octopus Energy Customers to Consider Tariff Options Ahead of Price Cap Changes

Martin Lewis, the founder of Money Saving Expert, has issued a cautionary message to existing customers of Octopus Energy regarding the upcoming changes to the Ofgem price cap set to take effect on October 1.

In a recent edition of his newsletter, Lewis provided guidance directed specifically at customers navigating the decision of whether to fix their energy rates or remain on their current tariffs. He recommended that those already with Octopus consider switching to the Octopus Tracker tariff if they are not already subscribed to it.

The Octopus Tracker tariff features rates that fluctuate daily based on wholesale costs, and it has reportedly been significantly cheaper than the Price Cap in recent months. For consumers who can adjust their energy usage timing, Lewis also highlighted the electricity-only Agile tariff, which adjusts its rates every half hour based on real-time wholesale prices.

Lewis’ advice comes at a time when financial measures are becoming increasingly stringent. Chancellor Rachel Reeves has recently announced plans to reduce energy subsidies available to pensioners, which aims to mitigate a £22 billion deficit in the UK budget.

As part of these measures, the government has proposed changes to winter fuel payments that were previously available to all pensioners. The new plan introduces means-testing, restricting these payments to individuals receiving Pension Credit.

Former pensions minister Baroness Altmann has voiced her concerns regarding the government’s timeline for implementing means-testing. She warns that the Department for Work and Pensions (DWP) may struggle to process a surge in Pension Credit applications, potentially leaving many low-income retirees without crucial support as energy prices continue to rise.

Baroness Altmann stated that it is likely that the government will not be able to process all new claims efficiently within a few weeks. She emphasized the importance of allowing adequate time for assessments and urged the government to postpone the introduction of means-testing for adequate preparation and assessment of the potential impact on vulnerable citizens.