Truss Sets Out Plan To Freeze Energy Bills

Energy bills for the average household will be frozen at no more than £2,500 and businesses will be spared crippling increases as Liz Truss took action to shield Britons from the global gas crisis.

The Prime Minister's two-year plan paid for by tens of billions of pounds of borrowing will save the typical household around £1,000 from October and protect billpayers from further expected rises over the coming months.

For businesses and other non-domestic users such as schools and hospitals, which have not been covered by the existing price cap, a six-month scheme will offer equivalent support.

After that there will be ongoing support for the most vulnerable industries, with a review in three months' time to decide where the help should be targeted.

The plan will see the Government limit the price suppliers can charge customers for units of gas, replacing the existing price cap set by regulator Ofgem.

Ministers will provide energy suppliers with the difference between the new, lower price and what they would charge were this not in place.