Prime Minister Liz Truss has announced a raft of measures to attempt to ease the energy cost crisis.
She launched what the government called a “pro growth, pro business, pro investment” plan to cap household energy bills and offer help for certain sectors such as education and hospitality.
The PM set out the two-year Energy Price Guarantee, explaining that household should expect to pay no more than £2,500 per year for gas and electric and that a previously promised rebate of £400 per year would still be forthcoming. Measures for vulnerable families will go further, she added, though no detail was given.
There was also no detail announced on how much the measures would cost, though speculation is that the energy cap could cost the government up to a staggering £150billion.
No figures are confirmed but the government has ruled out a windfall tax on energy firms.
The measures at a glance:
- Energy bills will be capped at around £2,500 for households for two years from October 1
- Households to receive a £400 cash boost towards bills (as previously announced)
- Government set to pay suppliers the shortfall from customers and will not impose a windfall tax.
- Businesses to get an equivalent support package for at least six months
- Vulnerable businesses such as those in hospitality could get further support
- Charities and public sector to also receive support for at least six months
The government claims average households will save £1,150 on energy over the next year.
The Prime Minister also said that for those using heating oil, living in park homes or those on heat networks, a fund will be set up so that all UK consumers can benefit from support.
The Chancellor of the Exchequer will set out the expected costs as part of his fiscal statement later this month.