Page 8 | Martin Lewis issues a stark warning

GreenLunchBox · 2022-07-19T20:51:37+00:00

And I'm really quite scared what's going to happen 😭 https://twitter.com/MartinSLewis/status/1549305060320067585?t=2QJm_R-HS3gXtUUCoy_8tA&s=19

Blossomtoes · 20/07/2022 11:07

It seems that the number of pensioners applying for equity release has shot up in the last year. The vast majority are doing it to repay debt.

stillherenow · 20/07/2022 11:08

@FayeGovan totally agree, don't care about people having to tighten their belts a bit and maybe have less holidays. It's the people who are just not going to be putting the heating on at all that need the help.

Cheesecakeandwineinasuitcase · 20/07/2022 11:10

ihavenocats · 20/07/2022 10:13

Blackrock. Vanguard.

Global financial crash, inevitable in a debt-based economy (because debt will exceed cash leaving no possible way to settle the debt). Get homes back into hands of big corporations through financial squeezing and ultimate repossession to rent stock back to us?

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The phrase “you will own nothing and be grateful” springs to mind…

What is Ofgems longer term stance on this I wonder? Are they intending to keep raising the price cap forever? When will it stop?

And why oh why are they raising interest rates to stop people spending money when it’s the gas and electric bills that are driving the inflation? People can’t control their spend on energy if the bloody prices keep going up!!!

BarbaraofSeville · 20/07/2022 11:16

And why oh why are they raising interest rates to stop people spending money when it’s the gas and electric bills that are driving the inflation? People can’t control their spend on energy if the bloody prices keep going up

This is what I'm really concerned about. A large part of the current rising inflation is caused by price increases in food, gas/electricity and petrol/diesel so people 'have' to buy a certain amount of this no matter how much it costs so will increasing interest rates actually reduce inflation like it would do when it reduces the amount people spend on new cars, eating out and other leisure spending?

Or are people going to be faced with spiralling cost of essentials including housing, no money left for anything non essential (so all the restaurants etc will go bust) and inflation that stays high because people can't spend any less than they do on basic essentials? And they can't earn more because the Government tells them they can't have a pay rise 'because it will cause inflation' .

CarterBeatsTheDevil · 20/07/2022 11:18

I used to know ML quite well. He's not a drama queen, he's very data driven and he's very clever. He doesn't scaremonger for fun. I'm sure he'd much prefer to be giving people tips on how to make money by swapping credit cards or bagging a great one-off deal than be telling people the financial system's about to go down the pan.

BarbaraofSeville · 20/07/2022 11:28

Martin Lewis could have quietly gone away and enjoyed his wealth in the last few years, instead he's worked tirelessly campaigning to help people get through COVID and now the cost of living crisis as best they can, lobbying the Government to try and make them sit up and listen to how bad it is and is going to be.

He donated £1M of his own money to help people who's income was affected by Covid and encouraged other high net worth individuals to do the same.

He donated £100k to National Energy Action, which also raised the profile of the organisation, encouraging others to donate (I'd never heard of this organisation, but donated the £150 council tax payment) and also encouraged people who need help to contact them.

Overall, he's donated about £20M of his fortune to help people who need it.

blog.moneysavingexpert.com/2021/01/martin-lewis--what-happened-to-my-pledge-to-give-p10m-to-charity/

I don't think he is 'performing' but even if he is, he's doing a lot more to help people than most other wealthy performers out there.

FayeGovan · 20/07/2022 11:34

deedledeedledum · 20/07/2022 10:50

On the back of his work he is now worth about £120million. He is VERY wealthy. His hyped up 'insights' that get people following him is all a very clever performance.

Trying to turn people against him because hes rich is such a tory way of looking at it. Listening to him and respecting his experience doesn't sit well with the government and its supporters. Trying to turn the ordinary Joe Bloggs against him COS HE'S RICH would suit them perfectly well. Instead of Joe Bloggs getting crucial information that might actually help him. Information martin puts out every week. For free. Based on whats happening that week. A maybe a guess, A GUESS, on what might happen in future.

Original poster

GreenLunchBox · 20/07/2022 11:37

BetterFuture1985 · 20/07/2022 01:42

I think if we step back from the energy crisis specifically and look at the economy as a whole, the last 12 years have been a disaster. The economy has been successively managed by people who did not know what they were doing with only a partial and limited respite when Philip Hammond was Chancellor (although he was largely constrained by Brexit). The result of bad policy means that the UK cannot withstand economic shocks like an energy crisis. The key issues over the past 12 years boils down to five key problems:

Austerity. There was never any logic in cutting essential spending on public services. All that did was remove investment at a time when inflation was much lower and when we could have "fixed the roof when the sun was shining." Now there is no roof, Osborne sold it. What we're now faced with is inadequate infrastructure that is one of the causes of low productivity and a need to invest at a time when inflation makes that difficult or even impossible.

It also made consumers poorer and less able to withstand economic downturns. What a lot of people never realised is that the UK economy cannot go bankrupt because it has a fiat currency. It can print money to pay debt but the reason it does not do so is to avoid inflation. But remember, printing money is basically quantitative easing and a good question for your local Tory MP is why the money printed under QE was put in private rather than public hands.

Brexit. Like it or not, Brexit creates additional trade barriers both in the form of tariffs and lack of regulatory recognition. This has made it harder to export and therefore harder for UK plc to make money. It has contributed to the weak pound sterling.
Tax rises on working people. VAT went up 2.5%, NI has been increased 2.25% in the last decade and we now have fiscal drag on the tax bands. Cutting taxes now would be inflationary but the government should change where they fall. With rampant house price inflation and labour shortages, we really need people to be incentivised to go back to work whilst the very wealthy ought to be paying more tax either on incomes or housing wealth.
Energy crisis. No doubt this is the primary cause of inflation, which is why suppression of wages doesn't really make that much sense. Yes, if we do too much there will be an inflationary spiral. However, if the government can issue cost of living packages for millionaire pensioners (2 million of them) why can't it do the same for people on middle incomes?
Weak pound sterling. Inflation is far worse in the UK because of low exports caused by Brexit. This means things we import like most of our energy become more expensive. Oil was much more expensive per barrel in 2008 than it is now for example, but because of the exchange rate to the US$ it is sold in we're paying £2 at the pump now compared to around £1.30 then.

Austerity and Brexit together have ruined the British economy in a way that is going to be very hard to come back from. Investment is too inflationary and the Tories are too proud to alter Brexit.

Great post.

I think the fiscal drag issue is such a big one and I don't know why it's not talked about more. So many people try not to earn more than £50k because it's not worth the tax increase, so this affects productivity.

The tax threshold has been frozen for so long. People who's pay has increased slightly to put them into the 40% band have effectively received a pay cut due to this, even before we mention rampant inflation.

I wonder why the Tories have this reputation of being good with the economy? Their policies focus on stopping the average worker from bettering themselves

OP posts:

Cyclemarine · 20/07/2022 11:58

I do agree some people spend live above their means and may regret some of their spending decisions come October or over winter when their energy bills etc come in. However, I don't really understand blanket judgement towards people spending on luxury things? Unless, of course, you know them/their financial affairs and know for a fact they can't afford it.

We really don't know people's situations...someone may be going on a holiday this summer but has resolved to limit themselves to buying a few £20 presents for christmas and to not over-eat and drink over the season. Or maybe someone going on holidays and buying a new car has been tightening their purse strings for years during covid so now have a bit to spend. And then, there are just some people who can afford to do the regular takeways, holidays abroad, new car etc without cutting back at all and won't regret it or feel the pinch like others.

I think the focus should be more on this horrendous extreme government which isn't doing more to help those who need it, especially the most vulnerable who may die or be severely ill as a result of having to stop using energy.

Original poster

GreenLunchBox · 20/07/2022 12:06

Iliveonahill · 20/07/2022 07:26

To those posters asking why some of us are not on fixed rates.

I was. The company went bust. I was moved to octopus. No choice over this. No other company will take on new customers that want to fix. So my choice now is fix with octopus or not. I have no other options.

Same here

OP posts:

Tellhimno · 20/07/2022 12:09

Cyclemarine · 20/07/2022 11:58

I do agree some people spend live above their means and may regret some of their spending decisions come October or over winter when their energy bills etc come in. However, I don't really understand blanket judgement towards people spending on luxury things? Unless, of course, you know them/their financial affairs and know for a fact they can't afford it.

We really don't know people's situations...someone may be going on a holiday this summer but has resolved to limit themselves to buying a few £20 presents for christmas and to not over-eat and drink over the season. Or maybe someone going on holidays and buying a new car has been tightening their purse strings for years during covid so now have a bit to spend. And then, there are just some people who can afford to do the regular takeways, holidays abroad, new car etc without cutting back at all and won't regret it or feel the pinch like others.

I think the focus should be more on this horrendous extreme government which isn't doing more to help those who need it, especially the most vulnerable who may die or be severely ill as a result of having to stop using energy.

Are you feeling judged cyclemarine, fess up what did you buy? What luxuries have you been splurging on? Agree I am very worried that people are going to be in a bad way this winter...many who voted for Boris, wonder how they feel about him and his cronies now.

TuftyMarmoset · 20/07/2022 12:11

So many people try not to earn more than £50k because it's not worth the tax increase, so this affects productivity.

The tax threshold has been frozen for so long. People who's pay has increased slightly to put them into the 40% band have effectively received a pay cut due to this

You only pay 40% on the amount that’s in the higher rate band. You still pay 20% on the amount in the basic rate band and nothing on the personal allowance (unless you earn over £125k).
The thresholds being frozen mean you may pay more tax than in previous years but you’re still going to be better off in a given year by taking the pay rise.

Belephant · 20/07/2022 12:13

BarbaraofSeville · 20/07/2022 11:28

Martin Lewis could have quietly gone away and enjoyed his wealth in the last few years, instead he's worked tirelessly campaigning to help people get through COVID and now the cost of living crisis as best they can, lobbying the Government to try and make them sit up and listen to how bad it is and is going to be.

He donated £1M of his own money to help people who's income was affected by Covid and encouraged other high net worth individuals to do the same.

He donated £100k to National Energy Action, which also raised the profile of the organisation, encouraging others to donate (I'd never heard of this organisation, but donated the £150 council tax payment) and also encouraged people who need help to contact them.

Overall, he's donated about £20M of his fortune to help people who need it.

blog.moneysavingexpert.com/2021/01/martin-lewis--what-happened-to-my-pledge-to-give-p10m-to-charity/

I don't think he is 'performing' but even if he is, he's doing a lot more to help people than most other wealthy performers out there.

Great points - and frankly I don't really care if he's performing because performance or no performance I still believe he helps people and the outcome is the same either way

Cyclemarine · 20/07/2022 12:22

Tellhimno · 20/07/2022 12:09

Are you feeling judged cyclemarine, fess up what did you buy? What luxuries have you been splurging on? Agree I am very worried that people are going to be in a bad way this winter...many who voted for Boris, wonder how they feel about him and his cronies now.

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Well I did order a pizza other night...😅the shame of it all..😆

I hope I'm wrong but honestly feel these people will vote for Boris again, they've did it for 12 years and very few seem to be saying - at least not publicly - that they intend to do any different at the next GE. They may criticise the Tories but they always end it with ' but it would be worse under Labour'

Oblomov22 · 20/07/2022 12:31

I knew this. He'd said before that it was going to increase again in the autumn. I know not what the answer is.

lookthisway · 20/07/2022 12:40

Forewarned is forearmed. These people who are criticising Martin Lewis as scaremongering are the drama queens, always looking for some 'hidden agenda' to moan about. Bills are already going up, prices are going up everywhere, that's a reality, not a scare tactic dreamt up by a money-saving expert.
As others have said he doesn't need the work or the publicity, but he's genuinely concerned. Isn't it better to be prepared than blindly stumble into the situation? I personally think his advice and honesty are really helpful.

FayeGovan · 20/07/2022 12:41

Cyclemarine · 20/07/2022 12:22

Well I did order a pizza other night...😅the shame of it all..😆

I hope I'm wrong but honestly feel these people will vote for Boris again, they've did it for 12 years and very few seem to be saying - at least not publicly - that they intend to do any different at the next GE. They may criticise the Tories but they always end it with ' but it would be worse under Labour'

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I agree

As long as the main stream media is controlled by tory supporters the sheep will do as they're told

Sweetpeasaremadeforbees · 20/07/2022 12:48

I do think ML is genuinely trying to help people and I'm sure he's saved people a fortune over the years BUT I also think people follow his advice too blindly sometimes without considering their own personal circumstances.

1st - student loans ‘best loan you will ever get’ - absolute bollocks. It’s 500% worse than any other loan I have ever got (10-12% interest rate and direct tax compared to a 1.5% mortgage) and the worst terms and conditions I have ever seen. What other loan can you get that says they can change the terms and conditions/ Interest any time they choose.

Yes I have always disagreed with him over this. And paying off your student loan will affect the mortgage you can get.

I worry that his warnings may panic people into altering their behaviour so much that we are tipped into a recession.

BadPhotographer · 20/07/2022 12:53

Sweetpeasaremadeforbees · 20/07/2022 12:48

I do think ML is genuinely trying to help people and I'm sure he's saved people a fortune over the years BUT I also think people follow his advice too blindly sometimes without considering their own personal circumstances.

1st - student loans ‘best loan you will ever get’ - absolute bollocks. It’s 500% worse than any other loan I have ever got (10-12% interest rate and direct tax compared to a 1.5% mortgage) and the worst terms and conditions I have ever seen. What other loan can you get that says they can change the terms and conditions/ Interest any time they choose.

Yes I have always disagreed with him over this. And paying off your student loan will affect the mortgage you can get.

I worry that his warnings may panic people into altering their behaviour so much that we are tipped into a recession.

How many loans allow you to only repay once you hit a certain threshold and are wipes off either after 30 years or once you hit 65?

TuftyMarmoset · 20/07/2022 13:03

Sweetpeasaremadeforbees · 20/07/2022 12:48

I do think ML is genuinely trying to help people and I'm sure he's saved people a fortune over the years BUT I also think people follow his advice too blindly sometimes without considering their own personal circumstances.

1st - student loans ‘best loan you will ever get’ - absolute bollocks. It’s 500% worse than any other loan I have ever got (10-12% interest rate and direct tax compared to a 1.5% mortgage) and the worst terms and conditions I have ever seen. What other loan can you get that says they can change the terms and conditions/ Interest any time they choose.

Yes I have always disagreed with him over this. And paying off your student loan will affect the mortgage you can get.

I worry that his warnings may panic people into altering their behaviour so much that we are tipped into a recession.

He’s right about student loans - they are a pretty much zero risk loan. You lose your job, you take maternity/sick leave - you don’t need to pay. You don’t earn enough to pay it off in 30 years - you don’t need to pay. It’s not on your credit history and it hasn’t affected any mortgage I’ve taken out any more than income tax has.

Cyclemarine · 20/07/2022 13:07

FayeGovan · 20/07/2022 12:41

I agree

As long as the main stream media is controlled by tory supporters the sheep will do as they're told

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Yep, the media has been awful and so pro-tory. Even when they finally chose to exposing Boris they made it seem like a problem with the individual rather than a wider problem with the Tories, especially those close to him...hence it now looks like his right hand man Rishi will be taking over soon.

Iamanunsafebuilding · 20/07/2022 13:23

justasking111 · 19/07/2022 22:50

This really isn't news to the clued up who have lived through this before and have recognised the warning signs and the bald facts of energy hikes. He's really trying to get through to the wilfully obtuse.

I've been watching all the hoo ha with flights/holidays abroad open mouthed at times. Why aren't people squirrelling away that holiday money for a rainy day/year. Now is not the time to fritter away money.

A lot of the holidays will be money refunded during Covid, possibly as vouchers, so people aren't spending 'new' money. We have a substantial amount in vouchers from a covid refund that we can't put towards our energy bills

Sweetpeasaremadeforbees · 20/07/2022 13:26

The thresholds for paying back student loans aren't that high. If you borrowed before 2012 you'll start paying once you earn more than about £20 000, if after 2012 it's above £27 000. Plus interest is added to the loan every year. Plus the terms of repayment can be changed. I guess it depends on whether you think your degree will get you a higher paying job or not.

TuftyMarmoset · 20/07/2022 13:35

Sweetpeasaremadeforbees · 20/07/2022 13:26

The thresholds for paying back student loans aren't that high. If you borrowed before 2012 you'll start paying once you earn more than about £20 000, if after 2012 it's above £27 000. Plus interest is added to the loan every year. Plus the terms of repayment can be changed. I guess it depends on whether you think your degree will get you a higher paying job or not.

Yes but (for post 2012 loans a at least) the interest doesn’t affect what you repay unless you are a fairly high earner since the repayment is just a flat % of income above the threshold. The only difference it makes is how much you have written off at the end!

Rearwindow12 · 20/07/2022 14:13

Biscuitandacuppa · 19/07/2022 22:22

Well that’s quite a dark picture he has painted for the winter and beyond. Unfortunately he is usually correct in his predictions. As a low single income family with a mortgage it is concerning. All I can do is hope this time he is wrong or that the government steps in to help. On that fronts I have my fingers crossed that Rishi gets the om job.

How did you get a mortgage on a single income? I have been turned down by major banks. Is it a smaller company?