Liz Truss has set out plans to freeze energy bills at an average of £2,500 a year for two years, as part of a package of support for homes and businesses that marks one of the biggest government interventions since the financial crisis.
In her first big act as prime minister, Truss said the government would fund the scheme to reduce the unit cost of energy through increased borrowing. The initiative is forecast to involve the transfer of £150bn in taxpayer funds to energy suppliers to make up the difference between what they pay for power in the wholesale markets, and the capped consumer price. Whitehall sources said official estimates would not come until a fiscal statement from the chancellor, Kwasi Kwarteng, expected later this month.
