London Daily

Focus on the big picture.
Sunday, Oct 11, 2026

Martin Lewis warns next UK prime minister of ‘financial cataclysm’

Martin Lewis warns next UK prime minister of ‘financial cataclysm’

Money Saving Expert founder calls for warm public spaces in winter as cost of living becomes ‘unaffordable’ for some
The consumer champion Martin Lewis has warned the next prime minister that they stand to inherit a country on the brink of a “national financial cataclysm” as soaring energy bills threaten to tip households into crisis this winter.

The founder of the Money Saving Expert website has become increasingly vocal in recent months on behalf of financially stretched households, amid surging inflation and a cost of living crisis.

Lewis predicted that further gas and electricity bill price rises this autumn would require the provision of “warm spaces in public buildings” such as libraries, where people who can no longer afford to heat their homes can find shelter.

“The winter is going to be bleak,” said Lewis. “I believe unless action is taken we are facing a potential national financial cataclysm.” His comments came as new figures showed that in May, British workers’ living standards dropped at a record rate after pay rises failed to keep pace with inflation.

In an “open video letter” to the remaining candidates in the Conservative leadership contest, Lewis said the debate had ignored a worsening cost of living crisis, with energy bills set to jump in the autumn when a new higher price cap is expected to cause the average household bill to top £3,200.

A recent update from analysts at Cornwall Insight predicts that in October the energy price cap will rise to £3,244 a year. The default tariff cap is expected to then rise again in January, to £3,363 a year. The tariff, set quarterly by the energy industry regulator, Ofgem, is already at a record high of £1,971 a year.

This looming 65% increase in energy costs would have huge ramifications, said Lewis, with a typical energy bill now equal to more than a third of a state pensioner’s income. “It is just not affordable,” he said.

The £400 government grant to help with energy bills had been already been swallowed up by predicted increases in the price cap, Lewis explained.

“These rises are unaffordable for many on the lowest incomes,” he said. “And while tax cuts will help, for those at the bottom end of universal credit and many state pensioners, the rises – when added to the increasing costs of food and transport and other inflation – means they’ll be back to that choice between starving and freezing.”

“This winter we’re going to need warm spaces in public buildings,” he said. “Local councils, universities and libraries will need to open their doors and invite people in to keep warm because they can’t afford to put their own heating on.”

Based on the discussions Lewis had had with his 2 million followers on social media, he said civil unrest was becoming a “plausible outcome unless the government gets a handle on this”. The most likely action being taken was mass non-payment of bills, he said.

“More intervention and action is needed, and it needs to be quick,” said Lewis. “There is a hard deadline coming and without more action I worry lives could be lost.”
Newsletter

Related Articles

0:00
0:00
Close
UK and Germany Agree to Deepen Security and Economic Cooperation Following Berlin Talks
British Prime Minister Burnham Pledges Closer EU Ties During Visit to Germany
UK Announces New Sanctions on 17 Russia-Linked Entities During Foreign Secretary's Ukraine Visit
UK and Germany Finalize Kensington Treaty to Strengthen Defense and Technology Cooperation
Britain Maintains Diplomatic Mission in East Jerusalem Despite Israeli Closure Deadline
English Councils Push Government to Rethink Proposed Funding Cuts
Scottish Homebuilding Falls to Lowest Level in 11 Years
BBC Chief Matt Brittin Defends Restructuring as Staff Challenge Job Cuts
UK Finance Warns High Energy Costs and Bond Yields Are Complicating Fiscal Outlook
UK Adopts All 44 Recommendations on Regulating AI in Healthcare
Chancellor John Healey Prepares Autumn Budget as Borrowing Costs Strain Public Finances
UK Investigators See Strong Indications of Iranian Link After RAF Fairford Security Operation
Laura Trott Pledges Tighter Controls on Political Activism in UK Classrooms
Welsh Ministers Launch Long-Term Review of North Wales and Anglesey Crossings
Welsh Government Orders 18-Month Study of Road Solutions Around Newport
Reform UK MP Sarah Pochin Faces Scrutiny Over £800,000 Second Home Purchase
British Households Grow More Concerned About Fuel and Energy Prices
NHS Leaders Warn of Rising Winter Pressure on Emergency Departments
Kemi Badenoch Proposes £2.3 Billion Employer National Insurance Cut for Young Workers
Middle East Conflict Could Erase UK Fiscal Headroom, Economists Warn
Manchester City Found Guilty of Multiple Premier League Financial Rule Breaches
UK Security Services Find Strong Indications of Iranian Role in RAF Fairford Incident
Costa Coffee Returns to Operating Profit on Iced Drinks and Menu Changes
Asos Warns Customers After Unauthorized Access to Retail App and Data
Kemi Badenoch Puts Growth and Deregulation at Center of Conservative Conference
Campaigners Warn of Deepening Social Care Crisis for Disabled Adults
Study Finds Rising Early-Onset Cancer Rates Among Adults Under 50 in Britain
UK Coach Operators Warn High Diesel Prices Could Force Route Cuts
FCA Opens Independent Review Into Handling of Epstein-Linked Whistleblower Case
Argentina Vows to Block Falkland Islands Offshore Oil Development
UK Chancellor Prepares Fiscal Measures and Welfare Reforms Ahead of Autumn Budget
Sainsbury’s and Morrisons Explore Potential Multi-Billion-Pound Merger
UK Weighs Tariffs on Chinese Electric Vehicles to Align With European Union
UK Threatens Diplomatic Expulsions Over Planned Closure of East Jerusalem Consulate
UK Energy Price Cap Hits Three-Year High as Middle East Conflict Raises Costs
Seventh Arrest Made in Suspected Terror Plot at RAF Fairford
Systemic Education Collapse Sparks Mass Student Uprisings in France
Green Party Faces Backlash Over Resolution Equating Zionism With Racism
Conservatives Debate Scrapping Environmental Rules for New Homes
Cornwall Insight Warns UK Energy Bills Could Approach £2,000 This Winter
UK Coach Operators Warn of Service Cuts as Diesel Prices Exceed £2
Scottish Parliament Approves £68 Billion Budget With New Tax and Property Measures
FCA Opens Independent Review Into Handling of Epstein Whistleblower
UK Government Drops Plan to Suspend Jury Trials in England and Wales
Bank of England Holds Interest Rate at 3.75% as Markets Watch November
Two Iranian Nationals Charged Over Alleged Plot Targeting Manchester Jewish Community
UK Fiscal Headroom Halves to £11 Billion Ahead of Budget, EY Warns
US Bomber Withdrawal From RAF Fairford Prompts UK Security Review
Sarah Wakfer Appointed Chair of Northern Ireland’s Health and Care Regulator
Scotland Housing Completions Fall to 11-Year Low Amid National Shortage
×