Money blog: Trump sends message to UK on energy bills - and we've fact-checked it (2025)

Every Friday, we take an overview of the mortgage market before rounding up the best rateswith independent experts fromMoneyfacts...

Brokers have warned of mortgage rate increases after higher-than-expected inflation reduced hopes of an interest rate cut in June.

Swap rates, which determine how much it costs lenders to lend, are likely to rise after April inflation came in at 3.5%.

"This increase is certainly going to stall the recent mortgage rate improvements, and with inflation due to stay above 3% for the rest of the year, it may be too much to expect further base rate cuts in 2025," Justin Moy, managing director at EHF Mortgages, said.

"And that's why mortgage rates will edge upwards in the next few weeks."

For now, this is only a warning - in fact, several prominent lenders have cut their rates as they play catch-up with the most recent base rate cut from 4.5% to 4.25% earlier this month.

Santander cut its fixed rate deals by up to 0.19%, Virgin Money by up to 0.18% and HSBC by as much as 0.21%.

The overall average two-year fixed rate held firm at 5.11%, while the typical five-year fixed rate fell slightly to 5.07%, according to Moneyfacts.

Here are the lowest remortgage rates on the market...

Moneyfacts also picks out "best buys" that look beyond rates to take into account fees and incentives, which could come in handy if you have exhausted your savings for a deposit...

More mortgage market innovations

With lenders under continued pressure to get the housing market moving and boost growth, we saw more banks making changes to help people get on the property ladder.

Barclays reduced its stress tests, which are used to work out a borrower's ability to keep up with the mortgage payments if interest rates increase.

The change means borrowers can borrow up to £30,750 more. Nationwide become the first major lender to relax its stress test rules last week.

"Lending more money isn't just about profits, it's about sensible risk assessment. With house prices high and rates falling, these changes make sense," Sean Horton, managing director at advice firm Respect Mortgages, told Newspage.

Another innovation came from Gable Mortgages, which became the second lender to launch a 100% mortgage after the 2000s-reminiscent deal returned thanks to April Mortgages last week.

These enable buyers to purchase a property without having a deposit. The standard five-year fix is priced at 5.95%, while the new-build option has a rate of 5.65%.

While the rates might not sound too high in comparison to the current averages, they do also come with hefty fees starting at £2,095 and going up to £9,995. These fees cannot be added to the loan.

White Maltesers are making a comeback, with manufacturer Mars Wrigley citing "significant consumer demand".

They first appeared as a limited edition product in 2003 before being made permanent the following year.

Since being discontinued in 2014, the company says fans have been "clamouring" for their return.

In 2017, an online petition garnered almost 1,700 signatures.

One person said white Maltesers were their "favourite chocolate in the whole world" and promised to buy thousands of bags if they went back on sale.

They are due back in the shops in the middle of June.

White chocolate is seen as a "growing trend", Mars Wrigley added.

The pound has surged in value against 46 of the 54 most popular currencies, meaning your holiday money will probably stretch further.

Over the last year, travel money specialists, No1 Currency, found the strongest spike has been against the Argentinian Peso.

Sterling is now worth35.8% moreagainst Argentina's currency than it was in May 2024.

It increased by1.3%against the most commonly purchased holiday currency, the Euro, with one pound now worth nearly 1.19 Euros, and 5.4% against the US dollar.

Here are all the places it has gone up in value:

"If you've booked a foreign trip but aren't travelling yet, it might be worth exchanging some currency now to lock into the current favourable exchange rate," saidSimon Phillips, managing director of No1 Currency.

Rates can differ a lot between different travel money providers, so do shop around for the best deal and never leave it to the airport to get your holiday cash.

"Remember that wherever you're travelling, taking some local currency in cash will help you keep track of your spending more easily and avoid unexpected charges for using your UK card abroad."

There are just a handful of destinations where the pound won’t stretch as far as it did a year ago...

The US president's take is that bills would come down if the UK moved away from renewable energy....

We asked business and economics correspondent Paul Kelso to outline whether or not Trump's statement rings true...

"Donald Trump is awake and he appears to have heard that the UK is digesting energy price news in the shape of the Ofgem price cap announcement," says Kelso.

"The president has a long-standing animus to wind turbines - windmills as he calls them - that dates back to at least 2019, when he lost a legal challenge to an offshore wind farm he said would spoil the view from his Aberdeen golf course.

"His contention today that the UK's energy bills could be reduced by focusing on oil and gas in the North Sea echoes Reform and Conservative Party policy that the government's ban on new drilling licences is pushing up prices.

"His claim that the tax system 'disincentivises drilling' and would take prices 'WAY DOWN' appears to be a reference to the windfall tax on energy companies, introduced at 75% by the last government at the height of the energy price spike, and increased to 78% by Labour.

"Energy companies agree about incentives but it is far from clear that doing so would feed through to lower prices, given the tax is levied on profits rather than the oil and gas itself, the price of which is set by the global markets on which North Sea commodities are traded.

"As for oil and gas stocks, Trump says there are 'large amounts' but on current forecasts reserves of both are insufficient to cover the UK's annual demand, and what remains is harder to extract and of lesser quality than that which has already been removed.

"The wholesale price of natural gas remains the single largest factor in setting energy prices and makes up more than 40% of the bills announced today. The government's answer is to transition to renewable energy sources and increase storage, which come at a high price to build and develop, paid in advance by consumers today, but for which the future fuel is free."

People flying to Turkey could reportedly be fined £52 if they get out of their seats before it's time to leave the plane.

Passengers are being told not to "stampede" for the exit and remain buckled up after the jet lands and taxis to the terminal.

It is not uncommon for people to congregate in the aisles, hoping their behaviour will encourage the crew to open the doors.

Turkey’s civil aviation authority said airlines will tell passengers they must remain seated, even after the seatbelt sign has gone off.

That will remain the case until it is their turn to leave the aircraft.

Airlines are obliged to "remind passengers to fasten their seatbelts during and after landing until they reach the parking position", the German DPA news agency reported.

Any infringement will be "reported to the aviation authority, and a fine will be imposed", it added.

Turkey is among the world's most visited countries. People travel there for its historic sites and tourist resorts, and its hair transplant and cosmetics clinics.

We'll continue to bring you reaction to the price cap news - but we'll now also start posting our usual consumer and personal finance news.

Martin Lewis has urged households to check if they're getting the best deal because the energy price cap is "pants".

The MoneySavingExpert founder said today's 7% fall is "nothing to shout home about" with the reduction meaning energy bills will still be 10% higher in July than at the same time last year.

"Compare that to the cheapest fixes on the market today, which are 18% below the current cap, proving the price cap is a pants cap," he said.

"It was only ever meant to be a back-stop tariff for those unable to switch, yet during the energy crisis, it effectively became a regulated price, and still today, 65% of homes are on tariffs dictated by the cap."

Why you won't save £129 a year

Energy regulator Ofgem has said the price cap change will save the average household £129 a year - but Lewis has pointed out that's not actually the case.

"The new price cap only lasts three months, so quoting an annualised price is meaningless, never mind an annualised price based on typical use," he said.

What 7% fall actually means

Lewis added: "Instead, in simple terms, it means for every £100 you pay for energy now, in July, August and September you will typically pay roughly £93.

"As the cut is on both unit rate and standing charges, this time the impact is pretty uniform for lower and higher users, though those with gas will typically see more of a fall, as its price is falling more than electricity."

What should you do now?

For all but those on pre-payment meters, Lewis advised them to get off the cap and use a comparison site to find the cheapest fix.

Lewis said this will instantly cut people's bills without having to wait until July.

Those already on a price cap tariff should be aware that comparison sites will show savings compared to the current price cap, not the one it'll drop to in July.

"That means savings will be exaggerated by 7%, and you need to factor that into your calculations," he added.

Nearly three million more families will be eligible to receive a £150 Warm Home Discount this winter.

Previously, those on Universal Credit or Employment and Support Allowance could get the discount - but only if they had "high energy costs".

But under changes recently confirmed by the government, the "high energy costs" criteria will be removed.

That means one in five families (6.1 million households) can claim support.

None of this is to be confused with the winter fuel allowance - which has been the subject of a U-turn by Sir Keir Starmerthis week.

If you live in England and Wales, you shouldn't need to apply - your electricity supplier will add the discount to your bill.

If you live in Scotland, you qualify if you either get the Guarantee Credit element of Pension Credit, are on a means-tested benefit in Scotland, and/or meet your energy suppliers' criteria for the scheme. Scots do need to apply.

You can find more details on the government website here.

By James Sillars, business and economics reporter

Financial market activity this week has been dominated by worries about US government debt.

Donald Trump's plans for tax and welfare cuts have added fresh pressure to the dollar and stock markets, with a bond sell-off also adding to the cost of servicing federal government debt.

The US currency is under further pressure this morning, with the pound shifting back towards the three-year high above $1.34 from earlier in the week.

The gains reflect a weaker dollar but also propping up sterling today is retail sales data that came in much hotter than expected.

The Office for National Statistics reported this morning that sunny weather boosted food sales last month.

Total retail sales volumes were 1.2% up. A rise of just 0.2% had been expected by economists.

Four consecutive months of growth for volumes is the best performance since 2004, when the COVID pandemic is excluded.

Consumer stocks were among those to gain on the FTSE 100.

The index was up by 0.3% at the open at 8,765.

Britons face some of the highest energy bills in the developed world, according to MoneySuperMarket.

Ashton Berkhauer, energy expert at the consumer website, said the fall in the price cap was "a step in the right direction, [but] many households will still be feeling the impact of high energy bills".

He said: "For over half a decade, British households have been saddled with some of the highest energy bills of any developed country in the world.

"The average UK household currently pays around 27% more for their energy than their European neighbours."

Information published on the House of Commons Library sheds more light on how UK energy prices compare - though it's slightly dated.

"UK domestic gas prices in the first half of 2024 were below those in 10 EU countries. UK electricity prices were higher than all but three EU states (Germany, Denmark and Ireland). Electricity prices in the UK have gradually become more expensive than in most other EU countries. In the early 2000s domestic electricity prices were the second lowest in the (then) EU 15."

In 2023, electricity prices were 27% higher than the EU average and gas prices were 22% below the EU average.