Martin Lewis has warned people confused by the announcement of a £2,500 cap on energy prices that this does not mean people will not pay more than that if they use a lot of gas and electricity.
On Thursday, Prime Minister Liz Truss announced what she called a "two-year energy price guarantee" that will cap the cost of the average household's energy bill's at £2,500 for the next two years. It is expected to cost up to £150bn on Thursday in a bid to tackle soaring energy costs in the UK.
The new figure replaces the old Ofgem price cap which had set energy prices at a level at which the average household would pay £1,971 year since the spring. It had been set to rise to £3,549 on October 1 but will be instead replaced by the new Liz Truss price cap for an average home at £2,500 or just over £200 a month.
