Energy bills will not surpass £2,500 for the next two years, the newly appointed Prime Minister, Liz Truss, said in the House of Commons today (Thursday, September 8).
This is part of the government’s plan to help businesses and households from rising energy bills amidst the cost-of-living crisis.
Truss claimed that this will save “a typical household £1,000/year”, adding;
“We are supporting this country through this winter and the next.”
She also referenced the £400 energy support scheme payment which households are scheduled to receive in October, and explained that all of these schemes are to “curb inflation and boost growth”.
What does this announcement mean?
Households will still receive the £400 from the energy support scheme payment in October as planned.
Energy bills for households will be capped at £2,500 from October 1, 2022, and Truss explained that “emergency legislation” was being brought in for this policy.
She has already vocalised her dislike for raising taxes, and does not regard it as a feasible solution.
“I will cut taxes to reward hard work and boost business-led growth and investment,” she said.
“We cannot tax our way to growth.
“We will use these two years ahead of us to ensure that the United Kingdom is never in this position again.”
Support for businesses
On the topic of businesses, schools, colleges, hospitals, other public organisations and charities, Truss said they would receive an “equivalent guarantee” of support, but that this support would only last six months.
She encouraged businesses to “look for ways to increase energy efficiency”.
The new PM declared that the support for businesses, and encouraging them to explore ways to increase energy efficiency, were both strategies that are “pro-growth (and) pro-business”.
