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Martin Lewis has reacted furiously to the lack of government help in place for the savage cost of living news announced this morning.

He warned that ‘people will die’ without urgent help and attacked ministers for not having a plan ready to go today.

Ofgem confirmed this morning that the energy price cap will rise to £3,549 in October, a change which will plunge some households into poverty.

The 80% hike is highly unlikely to be the last, with some experts warning the rate is on course to pass £5,000 next year.

Some financial assistance worth £400 per household has already been announced and will come into force in October but bills have outstripped what is on offer and even the government admits its needs to do more.

Chancellor Nadhim Zahawi promised ‘help is coming’ but, in reality, he is unlikely to be in his job in a fortnight’s time and the government is politically unable to make significant moves.

Liz Truss is expected to be confirmed as the new prime minister on September 5 and no new funding is expected to be announced before her cabinet is in place.

In the mean time, the MoneySavingExperty.com founder said the price cap news would have a shattering effect on families.

Mr Lewis said: ‘I’ve been accused of catastrophizing over this situation and I have been because this a genuine social and financial catastrophe that is putting lives at risk’.

He called for ‘further urgent government intervention’, adding: ‘What deeply frustrates me here is we’ve been warning for months that this is coming, this is not unforeseen. 

‘To get to the day of the announcement without having a firm package in place is devastating for vulnerable people, many of whom will already have mental health problems.

‘The panic and desperation I am seeing across the country in my mail bag is just awful.’

He pointed to analysis suggesting the cap could surpass £5,000 next year, saying of today’s announcement ‘I’m afraid to say it doesn’t end there’.

Mr Lewis said there were several ‘concrete solutions’ available to ministers but all ‘involve spending substantial amounts, billions of pounds, of government money’.

He added: ‘I hope and I pray whomever our new prime minister is they will do something this winter because if they don’t, people will die due to these energy price hikes.’

Mr Lewis also pointed out the price cap is not a maximum charge and said some families, especially those with disabled children, could see bills hit £10,000.

Earlier this morning, he told BBC Radio 4’s Today programme: ‘I’ve been accused of catastrophizing over this situation – the reason I have been catastrophizing is this a catastrophe, plain and simple. It’s unaffordable.’

He continued: ‘If we do not get further government intervention on top of what was announced in May then lives will be lost in winter because of these terrible, unaffordable energy bills.’

The Institute for Fiscal Studies said the next prime minister would be unable to avoid putting together a ‘substantial package of support’.

According to its analysis, the new rise in the price cap means the government support already announced will cover less than half of the rise in bills for an average household.

It said covering the same proportion of the energy price rise now would cost a further £14 billion.

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