This week’s events in the Middle East have sent stock markets plummeting and energy prices soaring. Money expert Hilary Osborne answered your questions about the cost of living.
In a week where Rachel Reeves had hoped to confirm a period of economic stability in Tuesday’s spring statement, global events once more overtaken the government’s best laid plans. The US and Israel’s war on Iran has shaken global markets and caused huge fears about energy prices and the impact they will have on inflation and the cost of living.
Hilary Osborne, Guardian’s money and consumer editor, has been busy answering your questions about the wider economic fallout. One reader asked about renewing their energy tariff: “I had just come to the end of a fixed rate tariff for my gas and electricity and I opted to renew it and then cancelled it because I thought the prices would be coming down. Then the war with Iran started. I contacted my energy company (Octopus) three days ago and opted to fix again. Is this the right decision or did I leave it too late?” Hilary replied: “If you managed to grab a fixed rate below the current price cap then well done – even if it isn’t as keen a deal as you might have got last week, you will probably still be happy with your choice if energy prices go in the direction that experts are expecting.”
Another reader asked about council tax rises: “I worry about council taxes rising every year. I can control most of my costs and can do without but council taxes are a nightmare. What can I do?” Hilary advised checking for discounts, such as the 25% single person discount, and contacting the council for discretionary help if struggling. She warned against falling into arrears as councils can escalate debts quickly.
A third reader shared their mortgage concerns: “When I took out my first mortgage as a sole buyer four years ago interest rates were below 2%. Since Liz Truss’s disastrous budget, things seem to have changed. Now coupled with AI as a competitor in the jobs market my workplace is issuing compulsory redundancies. My mortgage is up for renewal next year. I’m only just scraping by as it is. What steps can I take now to prepare for potential redundancy coinciding with a mortgage hike?” Hilary advised building up savings if possible, speaking to a mortgage broker early, and considering options like extending the mortgage term or switching to interest-only payments temporarily.
