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Martin Lewis Issues Warning For Those Planning A Summer Holiday

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If you’re planning on going on a summer break abroad this year, Martin Lewis’s team have issued a warning for you.

The team has warned that not only should you check that your passport doesn’t need to be renewed but also that it’s valid for the country you’re visiting. This is because many countries have laws for how long you can have left on the passport in order to visit and how old the passport is. Since Brexit, this includes some EU countries, too.

The expert added, “If you fall foul of these, you could be refused entry – we’ve heard one story of a family’s four-year-old girl being refused entry to Turkey because she had less than two months left on her passport.”

The EU encompasses Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden.

If you renewed your 10-year passport early, ensure that you’re still in the valid period as extra months may have been added at the beginning of the passport’s validity, meaning that your passport may be technically over 10 years old and excluded from some travel destinations.

However, if you’re travelling to Ireland, it’s not quite as strict. Ireland is part of the common travel area with the UK and a passport isn’t required from British nationals travelling from the UK. However, as immigration officers check the identification of people arriving by flight and may ask for proof of nationality. Money Saving Expert recommends taking your passport anyway and ensuring it’s valid for the entire stay.

For information on the specific country you’re visiting, the government has an online tool which tells you the latest information on travelling and entry requirements

The only website to use to apply for a passport is the Gov.uk website. On there, you can get your first passport, renew an old one or get one for your child. You can also apply by paper at the Post Office.

Renewing a passport can take three weeks and Money Saving Expert urges that travellers apply early to avoid disappointment.

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Why Martin Lewis And Economists Think Raising Interest Rates Is A Bad Idea

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The Bank of England raised UK interest rates again – lifting the “base rate” to 4.5% from 4.25%.

It’s the 12th increase in a row since rates started going up in December 2021, pushing borrowing costs up further, particularly impacting homeowners with a mortgage.

Soaring food prices – and the fact they remain stubbornly high – appears to be the key factor behind the decision.

But experts are not sure it’s the right policy

Some economists think the Bank could has gone too far since the impact of the repeated rises has yet to pass through to households and businesses.

Take homeowners. Around 85% of all borrowers are tied to fixed-rate mortgages – but the majority are yet to switch to a higher-rate home loan, and could be in for a shock when they do.

One prominent commentator predicted “screeching U-turns are coming” – and the Bank will soon have to cut rates to avoid tipping the UK economy into recession.

So how do interest rates work?

Hiking the base rate increases the cost of borrowing, making both credit and investment more expensive. The idea is to put the brakes on the economy and curb the soaring cost of goods and services – known as inflation.

Bringing rates down is an attempt to have the opposite effect – stimulate growth by making borrowing cheaper, and in turn, encourage investment.

The Bank is tasked with keeping inflation under control, targeting 2% a year. Inflation hit 10.1% in March, and raising rates is the blunt instrument it has to bring it down.

This is the bind the Bank is in: raise interest rates to combat inflation, but then stall the economy and make people’s lives miserable and make any downturn potentially deeper and longer.

Why are experts calling it out?

Put simply, some economists argue that pushing up rates is having little to no effect on inflation – mainly because the war in Ukraine has been the driving force, chiefly through higher energy costs that are now easing. The same applies to two other factors, namely higher oil prices and economies emerging from a pandemic.

Consumer champion Martin Lewis suggested on Twitter that the Bank was sending signals more than anything else. Lewis wrote: “I’m no economist, but I struggle with the logic behind base rate rises currently. Inflation seems supply-side driven – but rate rises dampen demand. Then again the BoE is charged with bringing down inflation and this is it’s only tool. So it has to do it. Co-ordinated effort with govt would help.”

An actual economist went much further.

David “Danny” Blanchflower, who sat on the Bank’s monetary policy committee for three years, accused the central bank of “terrible incompetence”.

He told Sky News in a lengthy diatribe:

“This is utter incompetence. The market doesn’t believe them. I don’t believe them.

“I don’t believe a word that they say and it’s going to make things much worse for your listeners.

“Housing market’s going be in trouble. Mortgages are going to go up, housing quantities are going to decline.

“It’s the same utter group-think incompetence in 2008, and the same bank missed the greatest financial crisis since 1929.

“And here they go again. The market doesn’t believe them. I don’t believe them.

“Your listeners shouldn’t believe them. Screeching u-turns are coming and bad economic data is coming.

“This is terrible incompetence and this lot should just quit.”

Others were of a similar mind.

Suren Thiru, economics director at the Institute of Chartered Accountants in England and Wales, said the Bank risked “overdoing” rate rises, which could compound the cost crisis for many.

He said: “With most of the interest rate rises yet to pass through to households and businesses, the Bank of England risks overdoing the rate hikes, adding to the squeeze on our growth prospects and aggravating the cost-of-living crisis.”

The IPPR think tank argued the Bank should have held off raising interest rates again, warning of a “continued increase in inequality”.

Carsten Jung, senior economist at IPPR, said: “The Bank of England should have held off raising rates.

“The current approach risks creating big economic costs, in the form of lower future growth and fewer jobs, while not actually being effective enough at bringing down inflation.”

What does the Bank say?

The Bank had previously been more optimistic that inflation could fall as low as 1% by the middle of 2024, but it is now predicted to reach about 3.4%, meaning it will fall at a significantly slower rate.

Andrew Bailey, the Bank’s governor, said there had been a “very big underlying shock” to food prices.

He added: “It appears to be taking longer for food price pressures to work their way through the system this time than we had expected.”

“But, as we said before, we are in very unusual times.”

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‘It Is A Catastrophe!’: Martin Lewis And Edwina Currie In Spat Over Energy Bill Crisis

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Martin Lewis took on former Conservative minister Edwina Currie on Twitter on Wednesday, after she called out his approach to the energy crisis.

Lewis, a consumer journalist known as the Money Saving Expert, has repeatedly shared his exasperation towards the government as the energy price cap is set to hurtle towards £3,549 come October 1.

He called on either Liz Truss or Rishi Sunak, the two remaining contenders left in the race to be the next prime minister, to sit down in an ITV special once they take office to field questions over the cost of living crisis.

His tweet quickly went viral and grabbed Currie’s attention, a former Tory MP who briefly served as a junior health minister under John Major. She lost her seat in 1997′s general election.

Currie is now known for being an outspoken public figure, a media personality and an author – and she had plenty to say about Lewis’ plea to the government on Wednesday.

She tweeted: “I would like you, Martin, to stop using words like ‘catastrophe’, and instead advise people take sensible steps to reduce the effect on their families and businesses.

“And stop pretending that governments can do everything. They can’t.”

He then responded: “It is a catastrophe Edwina!

“While there are steps people can take to help themselves (I explain them in today’s email mse.me/latesttip), energy bills by Jan will cost on average over half the full state pension and bigger proportion of basic UC [Universal credit].

“No sensible steps cover that!”

Several hours later, Lewis also put together a Twitter poll which asked: “Do you think it is fair to call the coming winter energy and cost of living price hikes a ‘catastrophe’?

“Votes split by whether you traditionally vote for Conservatives )even if not right now) or not. To see if view correlates with political stance.”

He tweeted summarising his findings (long before the poll officially closed) by pointing out that of 15,000 votes, 90% of Conservative voters and 95% of non-Tory voters agreed that it was fair to call the crisis a “catastrophe”.

However, Lewis did note that this was a Twitter poll, and therefore does not fairly represent the population.

Currie also replied to Lewis directly, saying: “Emphasise the help. Include local authorities, as in Germany.

“Give people something they can do…not just wringing their hands. The more those who can reduce usage, the easier it gets for those who can’t. Every little helps.

“And no, governments cannot do everything.”

It’s worth noting that Germany has unveiled a long-term strategy to cut energy costs, including insulating old buildings, while also offering one-off payments for workers who pay income tax.

Meanwhile, Downing Street has been called a “zombie government” (by Lewis) and criticised over its inaction for weeks now – especially as the cost of living package offered in May is now nowhere near enough to meet the current needs of the crisis.

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Ofgem Has Changed Its Energy Cap Policy Again. Here’s Why It Matters

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Energy regulator Ofgem has confirmed a major policy change today which could impact your bills, yet again.

Now the price cap will be updated quarterly (every three months) instead of every six months, in a bid to prevent large-scale disruption.

The cap was set out in law in 2018, and reflects the maximum suppliers can charge consumers per unit of energy.

It means suppliers can only take 1.9% as profit, but it’s not a cap on the maximum bill a household can be charged, as this is based on their usage.

While it may seem like an insignificant change in policy, it will have a substantial impact on your bills. Here’s what you need to know.

How important is the price cap?

Ofgem made headlines when it raised the price cap in April, meaning every household had to pay more for their annual energy bills.

The average household had to then start paying £700 more for their yearly annual bills, raising them to a record £1,971 (it was previously £1,227).

For many, this is seen as the start of the cost of living crisis.

While the cap stops prices rising and falling dramatically for consumers as wholesale prices go up, it does mean the cost of living is likely to only get harder in the short-term.

However, when wholesale prices fall, the reductions will be passed on the customers as Ofgem should lower the price cap. This will happen more quickly with the quarterly price cap.

The cap was set to rise again come October (to a staggering £3,358 a year according to analysts Cornwall Insight) but this policy change from Ofgem means the next price cap level will be published at the end of August.

Why has this changed?

Ofgem say this change prevents the cost of both gas and electricity lagging behind changes in the market, but admits the market is currently “volatile” so the price cap methodology is to be kept under review.

Ofgem CEO Jonathan Brearley acknowledged that “this situation is deeply worrying for many people”.

He then blamed Moscow’s decision to squeeze its gas supply to mainland Europe, which has a knock-on effect for the UK.

“As a result of Russia’s actions, the volatility in the energy markets we experienced last winter has lasted much longer, with much higher prices than ever before,” he said.

“And that means the cost of supplying electricity and gas to homes has increased considerably.

“The trade-offs we need to make on behalf of consumers are extremely difficult and there are simply no easy answers right now.”

He said this change means consumers will pay the “real cost of the energy”, but added: “We will keep working closely with the government, consumer groups and with energy companies on what further support can be provided to help with these higher prices.”

Why has the change been heavily criticised?

Back in May, MoneySavingExpert Martin Lewis laid into Ofgem’s early proposals to review the price cap every three months, rather than every six.

Explaining how he had lashed out at the regulator over the suggestions in a Twitter thread, he said the changes were “a fucking disgrace that sells consumers down the river”.

He apologised for his outburst, explaining: “I should’ve behaved better. My ire’s institutional not individual, it was inappropriate.”

However, Lewis claimed the changes would bring “dire consequences for consumers”.

Cornwall Insight also predicts that the energy price cap will go up to £3,615 in January. For comparison, it was £1,400 a year in October 2021.

MPs already called on the government at the end of July to take urgent action to help households amid warnings that prices will soar this autumn.

“Once again, the energy crisis is racing ahead of the government,” said Darren Jones, the chair of the business, energy and industrial strategy committee.

“To prevent millions from dropping into unmanageable debt it’s imperative that the support package is updated and implemented before October, when the squeeze will become a full-on throttling of household finances and further tip the economy towards recession.”

With this new policy change confirmed and the new price cap looming at the end of August, this threat of “unmanageable debt” is likely to only creep closer.

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Experts Tearing Their Hair Out Over Cost Of Living: ‘Country Needs More Help!’

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Two household names known for their money-saving tips have revealed their frustration at Downing Street for its latest hike in energy bills, which will push people into poverty.

From April 1, the government has lifted the cap on energy bills which will increase the average household’s annual payments by £700. It’s set to hit 18 million households and is the largest increase since the regulating price cap was introduced.

The number of households in England in fuel poverty is subsequently set to double to five million people.

This is just one of several measures which have pushed the UK into a cost of living crisis where people will have to choose between eating and heating. Council tax, water bills and car tax costs are all rising this Friday too.

It’s now at the point where every the money-saving specialists, personal finance expert Martin Lewis and anti-poverty campaigner Jack Monroe, are at a loss.

People ‘already at the brink’

Monroe, known for calling out supermarkets over rising prices and sharing their affordable recipes, appeared deeply unsettled when they told ITV’s Lorraine that “people are at the brink” already on Friday.

They said: “It all boils down to the fact that people don’t have the basic income to meet their most basic and fundamental needs.”

The campaigner added that “it’s a crisis that has been building for the last decade”, and financial aid – rather than government platitudes – is needed.

Monroe sighed when asked what advice to give to people struggling and said: “It’s getting increasingly difficult to give tips and advice because people are at the brink.”

‘Lack of compassion’ from people in charge

The anti-poverty activist also shared why this crisis is particularly frustrating, explaining: “We’re one of the richest economies in the world, people shouldn’t have to be scrabbling around for these war-time tips in order to live a decent standard of living.”

Monroe later tweeted: “If I seemed a bit strung out on Lorraine this morning it’s because I am.”

They explained that across the last decade of campaigning against UK poverty, they “have never known the scale of sheer desperation and terror that is bombarding my inboxes daily from people worried they can’t survive this crisis”.

They added: “That’s not an exaggeration; people with disabilities, people on Universal Credit, people on low wages and zero hour contracts and underemployed in insecure part time jobs, people living alone, elderly people, all literally petrified about their immediate futures.”

This means it becomes “quite stressful” when trying to give people tips because “most people are doing everything they can think of”, they tweeted, including “the most absurdly unthinkable things”.

They pointed out that the main solution is just “urgent financial assistance from those that we elected to represent us”.

They added that they’re “almost out of hope”, explaining: “I’m beyond irritated at the lack of compassion and accountability shown by those who made this happen and have the power to stop it, but are choosing not to.”

Monroe pointed towards the elected MPs and called for action – and to “get the Tories out” – over the poverty crisis.

“Enough has to be enough,” they added.

‘Never experienced anything like this before’

Martin Lewis, founder of MoneySavingExpert.com, expressed his concerns about the cost of living crisis on Thursday and explained how it had negatively affected him.

Speaking to BBC Radio 5 Live, he said: “I think the anxiety and level of sick[ness] I feel in my stomach…no-one could have my mail bag and not feel sick at the moment.

“I think the only time I can remember is the week of the pandemic before furlough was announced. When we had no certainty and there was no help… that level of panic.

“And I feel that, for the lowest-earners in society, we’re back to that. The difference is I’m not sure where the help is coming from.

“We’ve certainly never experienced anything like this before.”

Not ‘party-political’ issue but a ‘humanitarian’ one

Lewis also explained that he tries to stay apolitical, but added: “I have to be blunt, the country needs more help.

“We are a first world, rich nation, and I am on [BBC] bloody radio station talking about how people are going to survive as to whether they choose to freeze or to starve, and I don’t feel that is right.”

The expert then took aim at those making the decisions, hitting out at chancellor Rishi Sunak’s controversial spring statement.

This included promises to raise the threshold for paying National Insurance, cut the basic rate of income tax (in 2024), cut fuel duty, up household support fund and drop VAT on green home improvements.

Lewis has already criticised this mini-budget for providing “nowhere near enough” support amid the cost-of-living crisis.

On Thursday, Lewis reiterated this message: “I have said this until I’m blue in the face – the spring statement, not enough help was given.

“And we need to protect our poorest, and we also need help for people with lower-to-middle incomes who are going to see their lifestyles curtailed very substantially by this.

“This is not a party political point. This is a humanitarian point.”

He said many people have tightened their belts to the point where it could not be tightened any more – and therefore political intervention was the only solution.

“I’m sorry the frustration is coming out, but I just wish the senior members of cabinet to have my mail bag,” the consumer journalist concluded.

Sunak’s self-defence

Sunak was forced to defend himself after he announced his mini-budget earlier this week. He has been criticised for not matching benefits to the 8% surge of inflation expected this spring, and for failing to help the worst-off.

But the chancellor disagreed with the claim that “government can or should” compensate everybody, especially when global factors – such as the rise in wholesale gas prices – are involved.

He also told MPs on Monday he wanted to keep borrowing down “at a time when we are worried about the macroeconomic outlook, particularly with regard to interest rates and inflation”.

“My job is to make the right long-term decisions and my view is that an excessive amount of borrowing now is not the responsible thing to do,” the cabinet minister said.

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Martin Lewis On Rishi Sunak Tackling The Cost Of Living Crisis: ‘Nowhere Near Enough’

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Money Saving Expert Martin Lewis has said Rishi Sunak’s spring statement announcements to help tackle the cost of living crisis were “nowhere near enough”.

On Wednesday, the chancellor brought fuel duty down by 5p until next March, raised the national insurance contribution thresholds to remove more low-paid workers from paying it, and took a penny off the basic rate of income tax by 2024.

But the founder of moneysavingexpert.com, speaking to Sky News, made clear there was very little to help with soaring household bills.

Lewis said the national insurance change would have a limited impact on people claiming Universal Credit. and extra cash for a “starving or freezing” fund would only help those in the most extreme circumstances.

Lewis said: “The chancellor has done more than I expected him to do but still nowhere near enough.

“We are still standing on a personal finance precipice in the UK.

“The chancellor is now the only person who can pull us back from that and I don’t think what we saw today is enough to do it.”

Lewis pointed to a “very dangerous time” where typical households will see their energy bills in October go up by £1,300 compared to the same time a year earlier.

“There is nothing close in this budget to covering that amount of money,” he said.

The consumer journalist said the country was reaching the point where people were “heating the human not heating the home”. He explained: “Don’t turn your central heating on, sit in a sleeping back. This is not advice, this is the tangible situation people are putting themselves in. Whether you have to get an electric blanket to get the heat you need, then leave the house to be cold. That is a tactic I am seeing people doing. Stark, isn’t it?”

He added in a message to Sunak: “Chancellor, you are the only person who can help.”

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