Martin Lewis issues a stark warning

[GreenLunchBox]

And I'm really quite scared what's going to happen 😭

twitter.com/MartinSLewis/status/1549305060320067585?t=2QJm_R-HS3gXtUUCoy_8tA&s=19

I agree about regulation. When he owned the moneysavingexpert website, he was very careful to stay just outside the financial regulation laws and not give "regulated" financial advice. He made an absolute shed load of money from commission he received from website users clicking links on his website to banks, insurance companies, utility providers, etc., - that's commissions which properly regulated financial advisers would have to declare to their customers. But as he carefully avoided giving personal advice, he was apparently exempt from the FSA regulations etc. Funny that some of the many millions he's made was from utility companies, i.e. electric & gas, from his website links, from the same utility companies he's now condemning for the price rises, likewise he's now happy enough to criticise banks and insurance providers, but wasn't quite so vocal when he owned the website and was profiteering on the back of them!

This

I looked at a fix last night.

The rates quoted were based on my estimated energy usage which I am confident about.

Quite eyewatering figures for a standing charge and price per KWH.

Not really. Not everyone is affected in the same way. Lots of people continued to be paid as normal during the covid years, lots of people got more in support payments than they could have earned working normally. Likewise, over 3 million were excluded from covid support. So some winners and some losers. Lots of people are sitting on decent amounts of income or savings, whereas also lots of people are in massive debt and don't know where their next meal is coming from. Economic peaks & troughs have never affected everyone in equal measure, there are always winners and losers.

As for 20 million passengers flying out of London. Lots of the same people are counted multiple times. It's not 20 million "unique" individuals. So a single person may have been counted dozens or hundreds of times, i.e. if they work abroad and "commute" a couple of days per week, or if they're in a "sociable" crowd and jet off every few weeks for a weekend stag/hen do in Magaluf, or richer people jetting to Paris every weekend for a show and a meal or shopping.

I wouldn't be surprised if the 20 million actually turns out to be something like 5 million (or less) individuals, many of whom do multiple flights on a regular basis! At the same time, there'll be people who used to fly for holidays who now can't afford them (or simply want to avoid the airport chaos/stress).

But in April they were already predicting an increase of at least 40% in October so fixing would have been the right advice. We fixed after being given advice by an energy trader who said “the market is fucked and will be for years”. We locked in for two years. I won’t say how much for per month because it makes me feel sick every time I write the number. I worry so much about how those on lower incomes will cope. Many of my extended family are in that bracket, especially my nan 😩

Really?well maybe it doesn’t affect you….another million thrown into poverty’s and you suggest scaremongering….? More food banks and people asking for food that doesn’t need cooking as they can’t afford the gas or electricity…..there is so much extreme poverty that many parents are skipping meals so that their kids can eat. Come winter the number of excess deaths of the old and poor will burgeon. It is very scary for people who dont have money.

There is also the fact that people's disposable income is not going to the economy to buy things but instead is going to energy companies. Less money flowing in an economy is not good for people who work and who need people to spend money.

And if your company suddenly finds that it is not making money and that people can't afford to buy its goods, then that could be people out of a job. Unable to pay their bills that they have fixed at.

"No man is an island"

Which is true in an economy. Except for some people who do have their own private islands.

the example numbers you refer to are a massive underestimate of the projected figures involved.

for just Jan-mar 22 ie off peak….

The UK Civil Aviation Authority has published aviation statistics for the first quarter of 2022. Overall, 31.4 million passengers flew in and out of the UK between January and March this year on 292,764 flights (compared to 30.9 million on 315,202 flights in the previous quarter). This represents a 42% fall in passengers compared to the same period in 2019, before the coronavirus pandemic.

How ridiculous to say it is scaremongering - it is a fact. Most people have had their energy payments increased substantially, and he is right that this isn't then end, increases will continue. Obviously energy costs affect business and quite often they will be passed on to the consumer. Try and convince yourself that he's a "drama queen" but, to my mind anyway, he is absolutely right.

Thanks for the thought. The funds are limited so we have decided to cope as I would hate to think of a young family missing out because we have taken some of the limited support. We still have some savings so with cutting back and using savings we will hopefully get through. I survived the 70s with two young children, even if I did have to sell my engagement ring when it got really tight, so I will go back to the things I did then.

Watched him on breakfast TV this morning and it doesn’t seem like scaremongering to me. What he was basically saying is that those on the cap are going to be in crisis through the winter if the government doesn’t step in and do something, and that by the time the new PM takes office in September it will be too late to do anything about it. He’s also saying there is a growing movement in the country advocating civil disobedience by simply not paying the bills. Scary stuff.

Sorry posted to soon. He also reiterated the cap was likely to rise by 65% in October and there will be another rise in January. He’s predicting prices to drop next year but not by much. I don’’t understand why they call it a ‘cap’ when it’s effectively setting the price.

Search YouTube Martin Lewis Cost of Living Crisis. In conversation with Emily Watson. Interesting stuff.

What you’re describing is ‘divide and rule’ and it’s straight out of the Tory playbook. Look at any MN or GN thread discussing social issues and you can’t fail to see how it works and translates in to ‘real life’. While we’re sniping at each other we’re leaving the people at the top alone to enjoy their luxuries. Not one of the leadership candidates had formulated any plan for the cost of living but were waving promises of tax cuts around like confetti. I agree - I don’t know why people aren’t rioting either, but give it time.

Martin Lewis is sounding an SOS klaxon and rightly so.

However no one should ever follow anyone's advice without doing their own research and due diligence!!

I've always known this but found this point extremely well punched home in Howard's end.
Two people listen to the rich man and squander life savings and he can't even remember giving them the advice.

Years ago fil did something similar with a fund.

Always always take responsibility for yourself and do your own research!!

But not everyone is obese, and not everyone who is obese will necessarily be forced to change their lifestyle. Obesity affects poorer people because they have to rely on cheaper food which can be unhealthy and lead to overweight - can’t see how that’s going to change, unfortunately. And the disabled community rely heavily on cars to get around - they’re traditionally on benefits and those who work are among some of the lowest paid. Switching to a bicycle isn’t an option for some.

On some level I'm glad I was born in the 1950's - we had no central heating and I know it is unpleasant to be cold in your home, but certainly liveable.

It is fortunate that the UK generally has very few occasions when the temperature drops below freezing. At least for now, with Climate change.

The suggestion to bring back rationing - won't work these days. There weren't the vast range of cheap convenience foods then. Everyone cooked from scratch.

Rationing only restricted the amount of a product you could buy, Everyone had the same limits. BUT the rationed goods still had to be paid for, and of course some couldn't afford rising prices.
I think bread prices were kept low.

It’s not the energy suppliers that are the problem, it’s the wholesalers. Energy suppliers buy at market prices set by the wholesalers - that’s why so many went bust when energy prices rose above the cap.

I've realised although I know about the cap, I don't actually understand it. Why can't the government set another one at a reasonable rate?

The cap is based on wholesale prices. It's supposed to cover the cost of buying and distributing the cost of G&E and then levies for environmental improvements, the regulator, OFGEM and to cover the costs associated with the companies that went bust, plus suppliers' profits.

Reducing the cap would require a government subsidy. There could be some element of this going forwards as there's been a windfall tax on the big oil companies - if this was applied as a subsidy, it would be one way to reduce the price we pay as consumers.

Thank you for explaining.

Thanks for sharing OP. He is very accurate with predictions - it's shocking. We may need to move to using coal just like Germany has, bit it's not the answer as we will then face crippling costs due to climate change.

We and by that I mean all workers with mortgages are all only a few pay checks away from homelessness.

It is very worrying, but experts are saying inflation should be back under control in Spring so at least one aspect of this mess should be improved fairly soon.

Good luck xxx

Sadly, it wasn’t liveable for everyone. Also, there were an awful lot of substandard homes around, riddled with damp and decay, causing all sorts of ill health. Cold houses are frequently also damp houses, so expect an increase in the number of homes decaying from the inside and causing health problems to go hand in hand with turning the heating off. It’s not as if there are as many open fires in homes as there were in the 50s either - for many, it’s gas, oil or electricity heating their homes or nothing.

Can you elaborate a little more on "experts are saying inflation should be under control by spring"?

Why do they think this? What will have happened between now and spring that will change things? Just interested in their logic, as obviously it impacts us all.

experts are saying inflation should be back under control in Spring

When you say "experts", are you applying the Mumsnet definition of "expert" (i.e. someone with the same baseless opinion as you), or are you actually referring to people who know something about it? If the latter, it should be easy enough for you to name these "experts" so the rest of us can look at what they've said.

I'm getting somewhat suspicious of Martin Lewis, he's appearing to be more and more a government hand puppet.

Because the government boffins re covid got a bad rap after a time. They're now using an apparently neutral person to spread the word. Nudge theory anyone