Martin Lewis gives his verdict on what the new Labour government means for your money

MARTIN Lewis has offered his verdict on what a new Labour government means for your money.

Keir Starmer will be the country's new Prime Minister after the political party won over 400 seats in the General Election, beating the Conservatives.

Labour has made big promises before polling day on what they would deliver including protecting pensions and cutting energy bills. 

The founder of MoneySavingExpert appeared on Good Morning Britain this morning to give his opinion on how Labour’s win will impact people's finances. 

Martin congratulated the party on its success but warned listeners the new government would face a “big economic black hole.”

"I suspect Labour once they fully get into government are going to have some type of revelation and say wow the finances are so much worse than what we expected...there is a big economic black hole and do some expectation management," he said.

Events such as the Covid-19 pandemic and Russia’s invasion of Ukraine have placed a huge strain on the UK economy in recent years. 

Families have also been under huge financial pressure due to the rising costs of goods and household bills.

Martin told viewers that Labour will be “looking for things that do not cost the exchequer a lot of money to do”.

He said: "They are going to want to show people things have changed and they mean action... but they are going to have to do it in a way that, where unless it was previously announced in a manifesto, it doesn't cost [any money]."

Labour wooed voters with a swathe of promises to help put extra cash in their pockets and improve major issues such as the housing crisis.

The new government ruled out increasing the rate of major taxes but confirmed that the freeze in income tax thresholds will remain until 2028.

The party also said it will build 1.5million homes with the aim of getting more people on the property ladder.

"Let see if they can deliver that one," Martin said.

However, the expert said the prospect of building more homes should be "certainly helpful" for mortgage holders.

Labour also planned to introduce a "Freedom to Buy" scheme to help people secure a mortgage.

The mortgage guarantee scheme may help 5% of first time buyers a year.

Martin said there was a "lot more" the party could be doing on the issue, but it was outside of the manifesto and unlikely to get immediately actioned.

Labour also confirmed it would ban no-fault evictions to make it harder for landlords to remove tenants without a good reason

"[No fault evictions] needs to change and I think it will change," Martin said.

The money expert has extensively spoke on issues such as the energy crisis, and ways for people to save on their bill.

The energy price cap is currently at £1,568 - the lowest level in two years, and will remain this way until September.

However, Martin warned today that in the next review the figure could rise to between seven to 13%.

He reiterated on the show the promise Labour made to him about lowering the standing charge customers currently pay if the party was elected, which could come as relief for struggling customers.

"For those struggling to make ends meet, we’ll stop the scandal of expensive pre-payment meters being forced on vulnerable people, " Starmer told ,

"And we’ll work with the energy regulator to reduce the standing charges that hit poorer households, he added.

Until the end of September 2024, the average standing charge cap is approximately 60p per day for electricity and 31p per day for gas for those on standard variable tariffs paying via a direct debit.

The standing charge is a fixed daily amount that households pay, regardless of how much energy they use.

Critics like Martin say that the charge is unfair. But others have warned that ditching it could place a higher burden on those with higher energy usage like the elderly and disabled.

Ofgem, the energy regulator, is currently reviewing how the price cap is calculated, including standing charges.

Talks of potential energy bill rises comes as some households have just days to submit a meter reading to ensure they are getting the best deal.

Customers who don't send their suppliers regular readings will have their bills calculated by estimated usage, and they will likely pay more - so it is always worth carrying out a check.