The new Prime Minister Liz Truss announced an energy price freeze today to help tackle the soaring cost of energy bills.
It means that people concerned with being able to afford their energy bills will receive a small respite in the face of a cost of living crisis. Ms Truss announced that the energy price cap will freeze at £2,500. However, concerns were raised by experts that an energy price cap freeze would have to last for more than a year to be effective or run the risk of people spending more on energy bills once the freeze is lifted.
Money saving expert Martin Lewis said ahead of the announcement that the freeze "has to be in place for at least 18 months to two years to be able to give people the peace of mind that is needed". Now, the Prime Minister has laid out the timeline for the energy freeze plan.
Read more: LIVE: Liz Truss announcement as new Prime Minister expected to freeze energy bills
Speaking to the House of Commons on Thursday noon, she confirmed that the freeze will be in place for all UK households for two years, starting from October 1. She said: "We are supporting this country through this winter and next and tackling the root causes of high prices so we are never in the same position again. For those using heating oil, living in park homes, or those on heat networks, we will set up a fund so that all UK consumers can benefit from equivalent support.
Ms Truss also confirmed that business, charities and public sector organisations will receive help with their energy costs but for less time. She said: "We will also support all businesses, charities and public sector organisations with their energy costs this winter offering an equivalent guarantee for six months. After those six months, we will provide further support to vulnerable sectors such as hospitality, including our local pubs..
She added: "In the meantime, companies with the wherewithal need to be looking for ways they can improve energy efficiency and increase direct energy generation."
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