UK Energy Price Cap Drops 7%, But Experts Urge Consumers to Act Now

Energy Price Cap to Drop 7% in July, But Experts Warn It's Still Too High The UK's energy price cap will drop by 7% in July, Ofgem announced. This means a potential saving for millions. However, financial expert Martin Lewis cautions against complacency. "It's still a 'Pants Cap'," Lewis stated in a recent video. He urges consumers to actively seek cheaper alternatives. Lewis's video explains the price cap's limitations. It only applies to standard tariffs; those on fixed deals are unaffected. He also challenges misleading reports of substantial annual savings, emphasizing the cap's three-month timeframe and regional variations. "The savings are only for three months," Lewis clarifies. "And they vary by region and payment method." The expert advises consumers to utilize comparison websites to find better deals. He highlights the availability of fixed-rate plans currently offering savings of up to 18% compared to the price cap. While a further reduction is anticipated in October, Lewis emphasizes the uncertainty of future price movements and the importance of securing a fixed rate now. "The cheapest fixes are available right now," Lewis advises. "Don't wait and risk higher prices later." Lewis's advice promotes proactive financial management for UK households during this period of economic uncertainty.