Prime Minister Liz Truss has this week made moves to limit the rise of Britain’s spiralling energy costs as she unveiled a raft of new measures to combat the cost of living crisis yesterday (Thursday).
Ms Truss announced a two-year plan to cap the cost energy for a typical household at £2,500 and further announced plans to offer support to businesses.
Speaking in the House of Commons, she said the move would save the average household around £1000 annually amidst fears of skyrocketing costs for gas and electricity and comes in addition to the £400 energy bill support scheme announced previously.
The average household’s annual gas and electricity bill was due to rise from £1,971 to £3,549 in October.
Even with the dramatic intervention in the energy market there are still warnings that millions will be left in fuel poverty this winter.
However, the new Tory leader is expected to borrow around £150 billion to fund the plan – after ruling out a windfall tax on the excess profits of oil and gas giants.
Addressing ministers yesterday, the prime minister said that the plans would give people certainty over the energy bills and has been agreed with energy retailers.
She said: “We will deliver this by securing the wholesale price for energy while putting in place long-term measures to secure future supplies of more affordable rates.
“We’re supporting this country through this winter and next and tackling the real cause of high prices so we are never in the same position again.”
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Ms Truss also revealed plans to support businesses, charities and public sector organisations with energy costs over this winter. She announced that the government will offer an “equivalent guarantee” for six months.
She added: “After those six months, we’ll provide further support to vulnerable sectors, such as hospitality.”
Reacting to the news, Stirling’s SNP MP, Alyn Smith, said the prime minister could have gone further in the new support package.
He said: “Whilst the details are still fresh, and I welcome plans to freeze energy bills, it’s clear the new prime minister could have gone much further in the new support package announced.
“The PM and her chancellor need to come clean on who will pay for this support.
“Neglecting to pursue a windfall tax on the excess profits of large corporations, especially energy firms, will leave a bitter taste in the mouths of my constituents. Instead it will be them, along with taxpayers across Scotland and these islands, who’ll be left picking up the tab for the UK Government’s ruinous economic policies and mismanagement of our energy resources.
“Households and businesses will need stability and support over this tough autumn and winter – it may be a new prime minister, but it’s the same old Tories. I’ll work hard with SNP colleagues to hold this government accountable for the mess they’ve created, and secure the assurances and support businesses and households desperately need.”
Mid Scotland and Fife Tory MSP Alexander Stewart, however, welcomed the announcement, describing it as a “bold and courageous move”.
He added: “The new six-month scheme for businesses such as the hospitality industry, to provide equivalent support to that being offered to consumers is extremely welcome also, along with ministers’ plan to offer focused support to vulnerable industries thereafter in six months’ time.
“The Conservative government recognises that people are struggling with their energy bills and I’m very pleased that emergency legislation will be brought forward to deliver this policy, with further details to be laid out by chancellor Kwasi Kwarteng as part of his fiscal event later in the month.”
