PM Liz Truss announces energy price cap amid cost of living crisis

The UK’s new prime minister Liz Truss has announced a cap on energy prices until 2024 to help combat the price of living crisis.

From the beginning of October, the average household energy bill will be capped at 2,500 pounds until the next election to help “curb inflation and boost growth”.

Speaking at the House of Commons, Truss said the stimulus package would result in the average household saving 1,000 pounds per year.

The price guarantee also includes a temporary suspension of green levies.

It comes in addition to the government’s previously announced scheme to give households discounts of 400 pounds off their energy bills.

Businesses, charities and public sector organisations will receive the same guarantee for the next six months.

After that period, the government will supply further support to “vulnerable sectors” such as hospitality.

The full cost of the support package will be revealed later this month by new finance minister Kwasi Kwarteng.

Truss has refused to call for a windfall tax on oil and gas giants whose profits have soared recently, arguing that it will “discourage the very investment we need”.

Labour leader Sir Keir Starmer welcomed the support package but warned that “the bill will be picked up by the working people”.