Martin: 'I feel sick writing this. The energy price cap's now predicted to rise 65% in October, taking typical bills to a horrific £3,240/yr, then rising again in January'
Nine need to know NOWs - to try and protect yourself - if you can

Enjoy this week's warmth. The coming winter will be bleak, the cost of living crisis is set to climax in catastrophe, unless there is further intervention. I sounded an alarm for politicians on Radio 4 on Friday. I'd love to ask all Conservative leadership candidates what they propose to do to avert energy bill disaster, and when? Though the clock is ticking, by the time the new PM is in place, we'll know the new price cap, so rising direct debits will be panicking millions. For now, let me explain what's coming, and try to mitigate it where I can. (PS: This isn't for N. Ireland, it has its own system.)

1. October price cap predictions have rocketed. There's no absolute cap on energy costs. Every six months (soon to be every three months), a cap is set on gas & electricity unit rates and standing charges. This price cap is mostly predictable as it is dictated by regulator Ofgem's published algorithm, based mainly on year-ahead wholesale prices. These have spiked in recent weeks, so analysts Cornwall Insight's latest predictions are frightening...
   
   Current cap: UP 54% on the prior one, so £1,971/yr for someone on 'typical use'.
   1 Oct 22 - 31 Dec 22. Strong prediction: UP 65%, so £3,240/yr for 'typical use'. The prediction's strong, as this is based on wholesale prices from Feb to mid-Aug.
   1 Jan 23 - 31 Mar 23. Prediction: UP 4%, so £3,360/yr for 'typical use'. Prediction accuracy is looser but ballpark.
   1 Apr 23 - 30 Jun 23. Weak prediction: Previously this was thought to be when prices may drop, but currently that is less certain, or at least any price-fall will be small. So rates next April are still likely to be far higher than today.
   
   I know many want predictions of the unit rates & standing charges, but that's unknowable, as the regulator decides the proportions each time. To put this all in context, though, if correct...
   
   - From Oct, typical energy bills will cost a third of the new state pension, and a bigger proportion of the old one.
   - The basic £400 energy bill reduction for all homes, due in Oct, was announced by Rishi Sunak in May. That help will be more than swallowed up just by the £450 increase in the prediction of the Oct price cap since May.
   
   
2. Should you fix now? Based on those predictions, over the next year you'll pay 57% more than the current price cap for energy. So if you can find a fix at less than that, it's worth considering, though the cost of fixes have rocketed in the past fortnight too. Full help and analysis in my updated Should I fix? guide (incl a list of cheap fixes).
   
   
3. This week, the first £326 of the £650 'cost of living' payment for those with lower incomes will be paid. Starting this Thursday, over the next couple of weeks the first of 8 million payments for those on means-tested benefits will be automatically paid into bank accounts as part of May's Govt 'cost of living support' package. See who qualifies and what to do if it isn't paid when you expect it.
   
   Not on benefits & struggling? Check our 10-min Benefits Calculator. Even if you only get a small amount, it may mean you're due the 2nd payment.
   
   
4. Pensioner on a low income? You may be due £650. Pension credit is a benefit that tops up your income, and crucially, if you're eligible you also get that £650 'cost of living' payment. Better still, even if you weren't eligible when it was announced, you can ask for it to be paid backdated - unlike other benefits - as long as you apply by 24 August. So do have a read of my quick Are you due pension credit? blog.
   
   
5. Changes to energy direct debit rules, standing charges, debt collection and more. Last week I, together with the boss of Ovo, organised a meeting. He brought the chief executives of Brit Gas, Octopus, E.on, EDF and Shell, while I gathered key charities. The agenda was to try and deal with some low hanging fruit issues. It was a productive, action-orientated two hours. See what we agreed to work on regarding direct debits, standing orders, debt collection and more. We'll be reconvening in Sept.
   
   

6. Struggling but not eligible for the £150 council tax 'energy help' rebate? If you didn't qualify (eg, you're not in bands A-D), there's a £169m discretionary fund for Eng and Wales. Almost half of councils have now published how to claim, see council-by-council help. If you're in bands A-D and haven't got it, see How to claim yours.

7. Put money aside to prepare now. I know that's a pipe dream for many. Yet for those who do have savings or currently spend less than you earn, putting some aside or even asking for your energy direct debit to rise should ease the winter cash-flow pain. Of course everyone should also check if a full money makeover can release cash.
   
   
8. Energy prices are already hell for many - some help may be available. Many are finding paying energy bills desperately difficult. Our What to do if you're struggling to pay your energy bills guide covers the help out there.
   
   
9. Can you reduce your energy usage? Obviously, cutting use cuts bills. Start with our energy saving tips for the simple stuff, add in the Energy mythbusting guide for those issues that are less clear-cut, and then if you're really struggling (though thankfully the summer warmth helps right now), our Heat the human, not the home guide.

New. Longest 0% card for new spending since 2020. It's 25 months interest-free. So if you need to borrow, don't just peek in your purse, sort the right way to do it

Credit cards are like fire - used right, they're a powerful tool, used badly, they can burn. Yet if you need to borrow and can repay within a couple of years, nothing is cheaper than a new 0% for purchases card. Provided you stick within your credit limit, this type of card gives you interest-free borrowing for a fixed period, and two new better-buys have just launched. You can see a full rundown of options in Top 0% for spending credit cards, but in brief...

• Only use these cards for planned, affordable, budgeted-for, one-off, needed purchases. Such as replacing a broken appliance. Don't use 'em to fill in gaps in your day-to-day spending, as that will add to your future costs, and make life more difficult (though we know many are doing it anyway, in which case 0% is better than paying interest - but again, far, far better to avoid).
  
  
• New. Barclaycard 'up to 25 months' 0% for accepted new cardholders. The new Barclaycard* (best to use our eligibility calculator first to see if you'll likely be accepted) is the longest 0% for new borrowing deal we've seen since 2020. Sadly, though, the 'up to' means some poorer credit scorers could get just 12 months 0%. There's no definitive way to know before applying, but it's likely the higher your eligibility calc acceptance odds, the better your chances. After the 0% ends, the rate jumps to 22.9% representative APR.
  
  
• New. M&S Bank 24 months 0% PLUS possible £25 cashback, and all accepted new cardholders get the full 24 months. While a month shorter, this M&S Bank card* is a better deal than Barclaycard if our eligibility calculator shows you've decent odds of acceptance, as if you're accepted you'll definitely get the full two years interest-free. After the 0% ends, the rate jumps to 21.9% representative APR.
  
  There's also £25 cashback... though that makes us a bit nervous as you need to spend a total of £250+ in five or more transactions in the first 90 days to get it. This could tempt you to use it for things other than the one-off, needed purchase. Our workaround is to use it to make the big purchase, then buy a banana on it every day for a week to ensure you get the cashback and some potassium, without splurging (other fruit purchases are acceptable).
  
  
• Store won't take credit card or item costs £5,000+? 0% money transfers pay cash into your bank account, so let you pay 'on card' even if the store doesn't take plastic. Or if what you're buying costs £5,000+, you may not get the required credit limit - so a cheap loan from 2.7% may be a better option.
  
  
• Follow the 0% Card Golden Rules. Full info in 0% credit cards (APR examples), but in brief...
  a) Never try to borrow your way out of debt - if you're struggling, see our Debt help guide.
  b) Always pay at least the set monthly minimum and stick within the credit limit, or you can lose the 0% offer.
  c) These cards are usually only top picks for spending - avoid cash withdrawals or shifting debt to them.
  d) Plan to clear the card (or balance-transfer away) before the 0% period ends, or the rates jump to the rep APR.