Liz Truss has announced the average energy bill will be frozen at £2,500 for two years in a bid to tackle soaring energy costs in the UK. The new Prime Minister and Conservative leader announced a support package worth between £100bn and £150bn on Thursday which replaces the energy price cap with an "energy price guarantee", effectively freezing the price cap for an average home at £2,500 - or around £200 a month. The plan will be funded by borrowing and will involve measures to increase energy supply including resuming fracking.
In April the price cap rose 54% to £1,971 and had been set to rise to £3,549 from October 1. Ms Truss said the government knew how "worried families were about getting through this winter" and that the measures would "curb inflation and boost growth".
Money Saving Expert Martin Lewis responded with a breakdown of what exactly the prime minister's announcement means.
