Financial Expert Martin Lewis’ Energy Price Predictions for 2025

Financial expert Martin Lewis is by now a well-known and well-trusted name in households across the UK. You might be curious to find out what he has to say about the energy price cap, and his predictions for 2025. This article will discuss Martin Lewis’ expectations for your energy bill in the year ahead, and how you can try keep your costs lower throughout the coming months.

Martin Lewis’ Energy Price Predictions For 2025

Martin Lewis has historically proven to not be far wrong when predicting energy price hikes. At the end of 2024, he predicted a rise in the price cap on his website, moneysavingexpert.com, which later proved true. He’s a reliable source of financial advice, and a valued opinion when it comes to saving money. That’s why we trust that to the best of his ability, his predictions about energy prices for 2025 are as accurate as possible.

1. Current Price Cap

The latest price cap was introduced on 1st January, marking a 1% increase from the previous limit. This means that for those on a standard variable tariff, the average household energy bill currently stands at £1,738 per year. 

Despite the price cap, there are still ways to reduce your energy costs. Websites like MoneySavingExpert.com regularly highlight deals that beat the price cap. Additionally, you may qualify for a government-backed grant that could cut hundreds of pounds from your annual bills. 

2. April–June Price Cap (1st April – 30th June 2025) 

Martin Lewis predicts that energy prices will rise again under the next price cap set by Ofgem. His latest update suggests an increase of between 3% and 6% in April. This increase will impact households across the UK, particularly those on variable tariffs, making it essential to explore fixed-rate deals or energy-saving solutions ahead of the rise. 

3. July–September Price Cap (1st July – 30th September 2025) 

There is some positive news as we progress through the year- Martin Lewis forecasts that energy bills could see a slight decrease from the previous price cap. While this is encouraging, the reduction is unlikely to be significant enough to bring bills back to pre-crisis levels. Households should still remain cautious and take advantage of any available cost-saving opportunities. 

4. October–December Price Cap (1st October – 31st December 2025) 

This period remains uncertain, as data varies between energy suppliers. Martin Lewis predicts that for EDF and British Gas customers, bills may increase, whereas E.ON’s data suggests a potential decrease in prices. This means consumers should stay informed and compare suppliers to ensure they are getting the best possible deal. Locking into a competitive fixed tariff at the right time could be beneficial. 

5. January–March Price Cap (1st January – 31st March 2026) 

Looking ahead to 2026, Martin Lewis expects another increase in the energy price cap, which could mean even higher household bills compared to current levels. This trend underscores the importance of long-term planning and investing in energy-efficient home improvements, such as solar panels or smart thermostats, to mitigate rising costs. 

How Accurate Are These Predictions? 

Martin Lewis acknowledges that the further into the future these predictions go, the more likely they are to change. Each price cap is set by Ofgem every three months and is based on wholesale energy prices at the time. Factors such as global energy demand, political developments, and supply chain disruptions all contribute to price fluctuations. 

While predictions provide a useful guide, consumers should regularly check updates from trusted sources such as MoneySavingExpert.com and Ofgem to stay ahead of any changes. 

Why Are Energy Prices Still So High?

Energy prices surged in late 2021, reaching their peak in the winter of 2022–2023. While prices have since eased, they remain significantly higher than pre-crisis levels, with households and businesses still paying almost double what they did before. 

Several factors have contributed to this prolonged crisis: 

• Wholesale Energy Prices – The lifting of Covid-19 lockdowns in 2021 led to a surge in energy demand as industries reopened. Supply chains struggled to keep up, driving costs higher. 

• Russia-Ukraine Conflict – The war led to European countries reducing or cutting off Russian gas imports, exacerbating supply shortages. Many nations were forced to seek alternative, often more expensive, sources of energy. 

• Inflation and Economic Uncertainty – Rising inflation and economic instability have also contributed to higher energy bills, as suppliers pass on increased costs to consumers. 

Although wholesale prices are lower than they were at their peak, they remain well above historical levels. According to Martin Lewis’ predictions, high prices could persist for some time yet. 

In Conclusion… 

Martin Lewis’ energy price predictions for 2025 present a mixed outlook. While a slight dip is expected mid-year, energy bills will likely remain high overall, with potential increases towards 2026. The uncertainty means that consumers must be proactive in seeking out the best deals and implementing energy-saving measures. 

While this isn’t the most reassuring news for UK households, it’s important to remember that these are just forecasts, and actual prices may change!

If you’re interested in exploring home energy grants to help combat rising costs, simply click the button below for more information. 

By staying informed and taking action where possible, you can ensure that you’re in the best financial position to navigate the changing energy landscape.