Martin Lewis warns cost of living crisis will hit people harder in spring than winter

Interest rates are now 3 per cent - the highest level since 2008 - in a bid to tackle soaring inflation

Martin Lewis has warned the cost of living crisis could hit people harder in spring rather than this winter.

The MoneySavingExpert founder said he was more worried about April when support on energy bills ends and interest rates could be “at their peak” as support packages were already in place for colder months.

The UK was hit with more bleak economic news on Thursday when the Bank of England said the country was heading for its longest recession in at least a century.

Homeowners also faced the biggest single shock on their mortgage bills in over three decades as the Bank announced the largest jump in interest rates in 33 years.

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Its base rate has now risen to 3 per cent - the highest level since 2008 - in a bid to settle rocketing inflation.

Mr Lewis estimated the move would cost mortgage holders nearly £500 more a year.

Martin Lewis has estimated mortgage holders could end up paying nearly £500 more a year with the new interest rates (Getty Images)

The MoneySavingExpert founder also warned the cost of living crisis and recession would not hit people equally - and this was something the government needed to keep in mind.

He urged policymakers to look at ways to “mitigate the damage” of the economic shocks to those most vulnerable to them.

“My genuine fear is not so much for this winter,” he told ITV’s Good Morning Britain on Friday.

“There are people who are going to be vulnerable and going to struggle this winter -as there always have been - and probably more of them this winter.”

But he said there was already support in place to help them through the colder months, including the energy price guarantee, as well as the £400 winter energy payment and £65 payment to benefit claimants.

“My genuine concern is what happens next April when the price guarantee ends on energy, when we're expecting to see mortgage rates probably at that peak and interest rates at their peak,” he said.

”Lots of people will be coming off fixes at that point. That’s likely to feed through to the rental market.”

He said it was important for the UK chancellor to reveal plans to “mitigate that damage to the individuals when it happen” in his statement in mid-November.

Jeremy Hunt is weighing up tax hikes and spending curbs as the new government seeks to put economic stability front and centre in the wake of the market chaos sparked by his predecessor’s calamitous tax-slashing mini-Budget.

Downing Street has warned there are “difficult choices” to come on tax and spending but pledged the government would ensure it was “acting fairly, protecting the most vulnerable and continuing to seek long term growth”.