SPARKING CONCERN
Martin Lewis gives verdict on Autumn Statement – and there’s a ‘worrying’ change for millions of energy customers
MONEY-saving expert Martin Lewis has given his verdict on today's Autumn Statement - including a 'worrying' change for energy customers.
He was responding to the Chancellor's speech in the Commons this morning setting out the fiscal update.
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Mr Lewis posted a video on Twitter analysing the new measures introduced today.
He explained a 'worrying' change in the form of the announcement that the cap of the Energy Price Guarantee would go up by 20%.
The Energy Price Guarantee limits the amount consumers are charged for average energy usage.
When it was announced, the average annual bill was set at £2,500 but Jeremy Hunt announced in the Autumn Statement this morning that this would rise to £3,000 from April next year.
READ MORE ON THE FISCAL UPDATE
Current estimates predict that bills could rise to as much as £4,000 on average per year, saving households £1,000 a year.
But, you pay for how much energy you use, so your bill could be higher than £3,000 a year.
The scheme applies to 24million customers on standard variable tariffs (SVTs)
He also revealed that he was able to confirm with the Treasury that if the Price Cap were to fall below the level of the Price Guarantee, customers would be switched to the cheaper of the two measures.
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The personal finance guru earlier tweeted to explain what the newly-announced cut in stamp duty will mean for house-hunters.
He wrote: "So while currently you pay no stamp duty until property costs £250,000 (£400,000 for first time buyers) it will go back to £125,000 (and £300,000 for first time buyers)."
The Chancellor confirmed in a statement a few weeks ago that the cut to stamp duty would remain in place.
But now he has set a date for it to end, as he announced a raft of measures aimed at balancing the books.
It comes as Mr Hunt announced:
- Up to £1,350 in cost of living payments
- Pension triple lock to stay in £870 boost for retirees
- Benefits including Universal Credit and pension credit to rise with inflation
- New work coach requirements for Universal Credit
- Social housing rents to rise 7%
- Freeze on income tax and National Insurance thresholds
- Stamp duty cut to end in 2025
- Typical energy bills to be capped at £3,000
- Minimum wage to rise to £10.42 an hour
He said: "The OBR expects housing activity to slow over the next two years, so the stamp duty cuts announced in the mini-budget will remain in place but only until March 31 2025.
"After that, I will sunset the measure, creating an incentive to support the housing market and all the jobs associated with it by boosting transactions during the period the economy most needs it."
Meanwhile, on his ITV show this week Mr Lewis warned families not to go into debt just to finance Christmas
Mr Lewis said: “You know you’re not going to be able to spend like you want to.
“Decide how much you are going to spend on Christmas this year and stick to it. Christmas is one day, we don’t want you to be indebted in the New Year,” he added.
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It comes after this morning's fiscal update also included direct payments to pensioners and benefit claimants, while also confirming that the pension triple lock would remain in place.
You can read a breakdown of who are the major winners and losers from today's Autumn Statement here.
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