Hopefuls ‘must tackle cost of living crunch to halt financial cataclysm’

MONey campaigner Martin Lewis has warned of a ‘financial cataclysm’ if the hopefuls to replace Boris Johnson do not pay more attention to the cost of living crunch.

In a video aimed at the Tory leadership candidates, he accused them of ignoring the ‘time bomb’ of rising energy prices and redhot inflation. His broadside comes with inflation at a 40-year high of 9.1 per cent – and expected to surge past 11 per cent in October when energy regulator Ofgem next raises its price cap on household bills.

Mr Lewis warned of civil unrest and mass non-payment of bills unless the new prime minister does more to tackle rising prices.

He added: ‘This cost of living issue needs to be at the front and centre of the debate. More intervention and action is needed and it needs to be quick. This is a hard deadline coming. Without more action, I worry lives could be lost.’

The video message from Mr Lewis, a former BBC radio presenter and founder of advice website MoneySavingexpert, also said: ‘The winter coming is going to be bleak. I believe unless action is taken we are facing a potential national financial cataclysm.’

Mr Lewis pointed to recent predictions that suggest Ofgem will ramp up the energy price cap by another 65 per cent, taking the bill for a typical household to £3,240 a year.

The regulator has been forced to keep lifting its price cap because Vladimir Putin’s invasion of Ukraine has caused energy prices to rocket after Western countries shunned Russia’s fuel supplies.

Mr Lewis said: ‘In September, when our new prime minister is scheduled to take office, the direct debits will already be increasing by 65 per cent. Someone who pays £100 a month now will start to pay £165 a month. Somebody who pays £200 a month now will start to pay £330 a month.’

He pointed out that from October typical energy bills would exceed a third of the state pension. He warned that public buildings, such as council offices, universities and libraries, would need to open their doors to keep people warm in winter.