The Ofgem price cap will be replaced with a "two year energy price guarantee", Prime Minister Liz Truss has announced. The guarantee means that a typical UK household will pay no more than £2,500 per year on their bills for two years from October 1, in a bid to protect families from further rising costs.
Energy bills will be frozen at £2,500 for two years ahead of the next general election as families face the cost of living crisis. The new scheme will be allocated an emergency budget, with estimates of the cost expected to be around £150bn.
A scheme for businesses, schools, hospitals and other public organisations, including charities will also "offer equivalent support" and will last for six months. Industries that are classified as "vulnerable" will receive longer-term support which will be explained later.
