Cost of living - latest updates: 'Take meter reading this week' warning from Martin Lewis ahead of price cap change (2023)

Key points
  • Households advised to take meter readings ahead of price cap changes this weekend
  • Drivers complain of increasing car insurance renewal costs | Send us your stories
  • Morrisons shoppers forced to scan receipts before leaving stores
  • UK economy going through shock therapy | Ed Conway analysis
  • Your dilemmas:Should I consolidate my debt?|I am coeliac and can't afford food - what do I do?
  • Budgeting Mum:Finding cheap petrolIElectric cars|Saving for your children|Do food subscriptions save you money?|Holiday spending money
  • Live updates by Bhvishya Patel


'What a laugh they are having': Drivers complain of increasing car insurance renewal costs

Car insurance renewal prices are continuing to rise, with some customers complaining of an "increase in cost with no explanation".

In April this year the average cost of car insurance was found to be £107 more expensive than it was 12 months ago, with data from One Poll for the insurance aggregate website finding that more than half (55%) of the 2,000 surveyed had received a higher renewal price than if they shopped around.

And figures from the Office for National Statistics (ONS) also show that the price of car insurance has gone up 43.1% in the last 12 months.

The recent hike has seen some motorists with Direct Line insurance voicing their anger at the hike.

Sharing their thoughts on the price increase, one driver wrote on on the Trustpilot website that their insurance had gone up from just over £400 to over £1,000.

While another complained: "When I received my Direct Line renewal notice for my car insurance, I couldn't get back up off the floor, what a laugh they're having at everyone else's expense."

And other driver said: "Generally good service but increase in cost with no explanation."

Sky News has contacted Direct Line for a comment.

Have you been affected by a hike in car insurance? If you have you can share your story with Sky News by contacting us on WhatsApp.

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What are the current average mortgage rates?

(Video) Energy price cap falls significantly as Ofgem reveals new level for average bills

We have just received today's average mortgage rate figures - and they show a slight increase from the figures we brought you yesterday.

The average two-year fixed residential mortgage rate is now 6.26% - up from up from 6.23% yesterday, according to Moneyfacts.

The average five-year fixed residential mortgage rate is 5.87% and yesterday it was 5.86%.

There are also 4,426 residential mortgage products available which is down from 4,483.

What about savings?

  • The average one-year fixed savings rate today is 4.63% - up from an average rate of 4.61% yesterday;
  • For easy access savings the average rate is 2.36% - this is the same average rate as the previous working day;
  • The average one-year fixed Cash ISA rate today is 4.32%. This is up from an average rate of 4.31% yesterday;
  • The average easy access ISA rate today is 2.47% - this is unchanged.


Greedflation? There's no evidence supermarkets are profiteering

This morning, supermarket bosses will appear before MPs - and they're likely to be asked whether they are profiteering from sky-high inflation.

These accusations are a consequence of food inflation remaining around twice the level of the overall figure.

We'll have a report on today's questioning in this blog a little later - but for now, why not read this Ian King analysis from May about why greed may not be behind our seemingly ever-increasing food bills...


Banks aren't passing interest rate hikes on to savers fast enough, chancellor warns

The chancellor has told banks "in no uncertain terms" they must pass on higher interest rates to savers.

(Video) Energy Price Cap Down, but BILLS up from April

Jeremy Hunt faced pressure from both Labour and his own Conservative backbenchers on the matter during a statement aboutsupport to mortgage holders agreed on Friday.

Labour's Dame Angela Eagle - a Treasury minister under Gordon Brown - called on the banks to stop their "profiteering".

The debate is over the speed at which risinginterest ratesare applied to savings accounts.

MPs wanted to know what was being done to ensure people's nest eggs were growing as fast as their mortgage repayments are going up, as both are impacted by the Bank of England's base rate.

Read the full story from our politics team...



Pace of food inflation is slowing down - but prices still surged 15% in the year to June

Food inflation in the UK has continued to slow from April's record-breaking rise - but is still up nearly 15% year on year, new retail figures show.

It means prices are still increasing, just at a slower pace than previously.

There was a 14.6% increase in food prices in the year up to June, research from the British Retail Consortium and retail analysts NielsenIQ showed - slightly down from 15.4% recorded in May.

Overall shop prices rose 8.4% over the year to June, a slowdown from the 9% recorded in the year up to May.

Read the full story from our business team here...


Plans to overhaul delayed flight compensation scrapped

Legislation that would entitle passengers to more compensation when their flights are delayed has been scrapped by the government.

Last year, ministers said they were looking into making passengers eligible for compensation if their domestic flight arrived an hour later than scheduled.

It now says that "further work" is required before any legislation can be changed.

The UK currently makes use of the European Union's EU261 rule, which says customers on flights shorter than 932 miles (1,500km) are eligible to receive £220 of compensation if their journey is delayed by more than three hours - with no eligibility for disruption under that time.

The Department for Transport looked to overhaul that legislation and replace it with a model similar to that of rail companies, where compensation is directly linked to the cost of travel and the length of the delay.

This would have seen a staggered compensation system, with shorter delays meaning consumers could claim back some of their ticket fare, with refunds increasing as delays do (eg 25% of fare refunded after one hour, 50% for two hours or more etc).

However, the Department for Transport is pressing on with plans to force airlines to sign up to a dispute scheme, which could help more customers get access to refunds.

(Video) ‘It keeps me awake at night’ - how the cost of living crisis is affecting everyday life


Households advised to take meter readings ahead of price cap changes this weekend

Households that pay utility bills via direct debit are being advised to ensure they take and submit meter readings ahead of Saturday's price cap change.

Consumer rights expert Martin Lewis said: "With monthly direct debit, firms estimate your usage, and assign it to a certain period, so submitting a reading within a few days of the change (many let you backdate a few days too) reduces the risk of their 'estimating' going against against you (though there's always a chance a discrepancy could end up in your favour). Take a pic of the meter for belt 'n' braces."

The government's energy price guarantee, introduced in October last year, has ensured that typical dual fuel households would pay no more than £2,500 for their energy per year.

This latest price cap change sees that scheme replaced and caps rates at a maximum of £2,074 per year for the average home.

At its peak, the price cap reached £4,279 and while Saturday's drop is dramatically lower than that figure and those of recent months, it is significantly higher than in previous years.

(Video) Martin Lewis on The Cost of Living Crisis

Energy research firm Cornwall Insight has predicted a further lowering in Q4 of this year, meaning we could expect a further price cap drop in October, although households will have to do without the £400 energy bill discount supplied by the government last winter.


Aldi cuts the price of loo roll

The budget supermarket has announced it is passing on further savings to its customers by lowering the price of loo roll.

From today, Aldi's Saxon Softer Luxury Toilet Tissue (9 pack) is now £3.25, down from £3.49.

An Aldi spokesperson said the supermarket remains the lowest-priced in the UK on a typical basket of everyday items.

"We know that's more important to our customers than ever, which is why we're passing savings on to our customers anywhere we can," they said.


'Millions' could get faster, cheaper broadband that offers 'triple the value' of traditional competitors

A new set of broadband providers are offering consumers up to "triple the value" for their money than traditional competitors, according to a Uswitch study.

The companies, known as altnets, offer independent networks (as opposed to "fibre" cabling) and are targeting areas underserved by competitors.

One such altnet business, Community Fibre, is providing customers in Chingford with download speeds of 798mbps and upload speeds of 735mbps.

"For too long, broadband customers have had limited choice in regards to which provider they select," Ernest Doku, Uswitch telecoms expert, said.

"Altnets are here to change this and incumbent providers should pay attention," he added.

(Video) Energy price cap: "If the government hadn't done this, it would have been totally apocalyptic"

Uswitch offer this postcode checker, which allows consumers to check eligibility for altnet providers in their area.


How many times has Bank of England increased interest rates? ›

With less demand for goods and services, prices should fall and inflation should start to go down. The Bank has hiked rates 13 times since December 2021, when the cost of borrowing stood at 0.1%, to its current level of 5%.

Are interest rates going up? ›

Mortgage rates may continue to rise in 2023. High inflation, a strong housing market, and policy changes by the Federal Reserve have all pushed rates higher in 2022. However, if the U.S. does indeed enter a recession, mortgage rates could come down.

Will mortgage rates go down 2023 UK? ›

Are mortgage rates expected to rise or fall during 2023? The consensus is that mortgage rates will gradually decline throughout the year, even if interest rates go up. Some predict that fixed rates could fall below 4 per cent by early 2024.

What is the next Bank of England interest rate decision 2023? ›

When will interest rates go up (or down)? In summary: On 22nd June 2023 the Bank of England (BOE) raised the base rate from 4.5% to 5%, its highest level in 15 years. The BOE raised interest rates in an attempt to reduce the UK's annual inflation rate, which now sits at 8.7%, well above the target rate of 2%.

How high will interest rates go in 2023? ›

Though Fed policymakers skipped an 11th successive increase to the federal funds rate —the borrowing rate for commercial banks and credit unions—at their June meeting , officials revised the 2023 peak rate projection up to 5.6% from the 5.1% target projected in March.

Will mortgage rates go down in October 2023? ›

Mortgage Rate Predictions 2023

Mortgage experts see rates decreasing over the coming months as the economy slows. Lawrence Yun, the chief economist of the National Association of Realtors, said he expects rates to fall to 5.5 percent by mid-2023.

Will house interest rates go back down 2023? ›

Along those lines, organizations like Fannie Mae and the Mortgage Bankers Association forecast that the average rate on 30-year fixed-rate mortgages will decline throughout 2023, continuing into the first quarter of 2024.

Are mortgage rates expected to drop in 2023? ›

In 2022, rates surged past 7 percent far faster than anyone predicted. Then, in 2023, mortgage rates calmed, leading many observers to predict rates would fall all the way to the low 5 percent range this year.

How long will interest rates stay high? ›

The squeeze on mortgage costs is set to last until at least 2025 with interest rates expected to rise again this week. Experts have warned that rates are unlikely to start coming down again before the end of next year as inflation remains stubbornly high.

What's a good mortgage rate? ›

A “good” mortgage rate is different for everyone. In today's market, a good rate could be 6% for one borrower and 8% for another on the same day. To understand what a favorable mortgage rate looks like for you, get quotes from a few different lenders and compare them.

Why did my mortgage go up if I have a fixed rate? ›

A fixed rate means the principal and interest payment on your loan will never change. However, your monthly mortgage payment also includes an escrow payment for real estate taxes and insurance premiums, which do change periodically.

Should I fix my mortgage for 2 or 5 years? ›

Whether you should fix your mortgage for 2 or 5 years depends on you and your circumstances. Fixing your mortgage for 2 years can give you certainty and stability in the short-term, and can also be the right choice if you only plan on staying in your home for a few years.

Where will bank interest rates be in 2023? ›

In March 2023, the Federal Open Markets Committee (FOMC) raised the target range for the federal funds rate by 0.25%, bringing the benchmark range to 4.75% to 5.00%. Banks generally use the federal funds rate as a guide when setting rates on savings and lending products.

What will jan 2023 interest rate be? ›

January 2023
MaturityUsed for December 2022Indicated for January 2023
1 Year4-5/8%4-3/4%
5 Years4-1/8%3-3/4%
15 Years4-1/4%3-3/4%
20 Years4-3/8%3-7/8%

What will the Fed interest rate be at the end of 2023? ›

The central bank had already raised rates to a range of 5 to 5.25 percent over a little more than a year. But policymakers also predicted in their economic forecasts that they might raise interest rates even further — to 5.6 percent by the end of 2023.

What is the interest rate forecast for 2023 and 2024? ›

The predictions made by the various analysts and banks provide insight into what the financial markets anticipate for interest rates over the next few years. Based on recent data, Trading Economics predicts a rise to 5% in 2023 before falling back down to 4.25% in 2024 and 3.25% in 2025.

What will interest rates be in 2023 2024? ›

Direct Loan Interest Rates for 2023-2024
Loan Type10-Year Treasury Note High YieldFixed Interest Rate
Direct Subsidized Loans and Direct Unsubsidized Loans for Undergraduate Students3.448%5.50%
Direct Unsubsidized Loans for Graduate and Professional Students3.448%7.05%
1 more row
May 16, 2023

Where will 30 year mortgage rates be in 2023? ›

As of June 21, 2023, the 30-year fixed mortgage rate is 7.06%, the FHA 30-year fixed rate is 7.00%, the VA 30-year fixed rate is 6.81% and the jumbo 30-year fixed rate is 6.40%.

Will the Fed raise rates in June 2023? ›

More rate hikes on the way

Most officials estimate the federal funds rate will top out at a range of 5.63-5.87% in 2023, suggesting there might be as many as two more quarter-point hikes this year.

Is it a good time to lock in mortgage rate? ›

The ideal time to lock your mortgage rate is when interest rates are at their lowest, but this is hard to predict — even for the experts. It's worth noting that interest rates could decrease during your lock period. Should this happen, you'll most likely have to pay the rate you initially locked in.

Will US interest rates rise again in 2023? ›

Fed policymakers estimate they'll push up the key rate by another half percentage point to a range of 5.5% to 5.75% in 2023, according to their median forecast. Financial markets and many economists expected the Fed to forecast just one more quarter point hike in July.

Will mortgage rates go down to 3 percent? ›

Returning to mortgage rates of 3% or 4% is not going to happen, in my view,” says Yun, who points out that historically rates have been higher. The low rates of 2020 and 2021 were “unique” and those that got them were “lucky,” he says.

Will mortgage rates go up in 2023 and 2024? ›

The Mortgage Bankers Association and the National Association of Realtors join Fannie in predicting a decline in mortgage rates starting in the second half of 2023 and continuing into 2024.

Where are interest rates going in the next 5 years? ›

An interest rate forecast by Trading Economics, as of 12 May, predicted that the Fed Funds Rate could hit 5.25% by the end of this quarter - a forecast that has been materialised. The rate is then predicted to fall back to 3.75% in 2024 and 3.25% in 2025, according to our econometric models.

What is the future of mortgage rates 2024? ›

Mortgage Interest Rate predictions for September 2024. Maximum interest rate 5.39%, minimum 4.97%. The average for the month 5.22%. The 30-Year Mortgage Rate forecast at the end of the month 5.12%.

When did the Bank of England increase interest rates? ›

Why have interest rates gone up? On Thursday 22 June 2023, we raised our interest rate (Bank Rate) by 0.5 percentage points to 5%. Our interest rate influences many other rates in the UK, including those you might have for a loan, mortgage or savings account.

Has the Bank of England increased interest rates? ›

HMRC interest rates for late payments will be revised following the Bank of England interest rate rise to 5%. The Bank of England Monetary Policy Committee announced on 22 June 2023 to increase the Bank of England base rate to 5% from 4.5%.

How often do banks increase interest rates? ›

Lenders' variable rates are influenced by what's happening in the markets, what the Reserve Bank is doing with its cash rate, and many other factors. It might be a few months or even years until you see interest rates change, or it could happen a few times in a month - it's not set in stone.

What will UK interest rates be in 5 years? ›

After hitting a new high of 5.25%, UK interest rates are expected to fall sharply in the coming two years with rates possibly between 3.5% and 4% in 2024 before falling to between 3% and 3.5% in 2025. UK interest rates are expected to stabilise between 3.0% and 3.5% between 2025 and 2027.

How much will my mortgage be if interest rates rise? ›

As an example, a tracker mortgage could be set 1% above the base rate. In December 2021, this would mean your mortgage rate would be 1.1%. However, in June 2023, it would have risen to 6%. In this example, your mortgage rate will have almost increased sixfold, significantly raising your monthly repayments.

What is the new interest rate today? ›

Current mortgage and refinance interest rates
ProductInterest RateAPR
20-Year Fixed Rate7.14%7.16%
15-Year Fixed Rate6.46%6.49%
10-Year Fixed Rate6.64%6.66%
5-1 ARM6.08%7.98%
5 more rows

What was the highest Bank of England interest rate? ›

Bank of England base rate history

A base rate increase in 1979 saw rates at their highest ever point: 17%. Rates decreased for a few years before rising to around 15% in 1991. Since then, the base rate has gradually decreased to single figures.

What is the New Bank of England interest rate? ›

The new Bank of England base rate

The latest Bank of England base rate is: 5.00%. This is an increase of 0.50%, and was announced by the Bank of England (BoE) on 22 June 2023.

Will mortgage rates go down in 2024? ›

Chief Economist at First American Financial Corp, Mark Fleming, says an interest rate drop may not happen for several months. "Possibly in 2024, but it will depend on the Fed's decisions about raising rates in the second half of the year," says Fleming.

Which bank gives 7% interest monthly? ›

Equitas Small Finance Banks

Equitas SFB offers 3.50% on balances up to Rs 1 lakh, 5.25% on balances above Rs 1 lakh to 5 lakhs. For above Rs 5 lakh, the bank is offering 7%. These rates are effective from December 14, 2022.As per the website, “Interest will be calculated on the daily closing balance of the account.

Will interest rates drop in 2023? ›

As inflation starts to come down, mortgage rates will recede somewhat as well. If we experience a recession, rates may drop a little faster. But average 30-year fixed rates will likely remain somewhere in the 6% to 7% range throughout 2023.

Do banks like when interest rates rise? ›

Interest rates and bank profitability are connected, with banks benefiting from higher interest rates. When interest rates are higher, banks make more money by taking advantage of the greater spread between the interest they pay to their customers and the profits they earn by investing.

How high could interest rates go in the next 5 years? ›

The predictions made by the various analysts and banks provide insight into what the financial markets anticipate for interest rates over the next few years. Based on recent data, Trading Economics predicts a rise to 5% in 2023 before falling back down to 4.25% in 2024 and 3.25% in 2025.

When was the last time interest rates were above 5? ›

Mortgage rates steadily declined from 8.05% in 2000 to the high-5% range in 2003.


1. Martin Lewis's explanation and instant analysis of the price cap and interest rates changes
2. Energy price cap rise: British households will see bills go up a record 54% | 5 News
(5 News)
3. Martin Lewis: Energy price cap UP 80% on 1 Oct adding £1,000s to bill
4. Why Britain's Electricity Price Increased by 3000% - TLDR News
(TLDR News)
5. Money Expert Martin Lewis Reveals Top Tips on Maximising Your State Pension | This Morning
(This Morning)
6. Rent crisis: why is renting so bad in the UK?
(Channel 4 News)


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