Chancellor Jeremy Hunt has announced the energy support package will only last until April 2023, not two years as planned.
In an emergency statement, Mr Hunt confirmed he is ditching many of the measures in the mini-budget, including the planned cut to income tax. However, in a monumental change of policy, the Chancellor announced that help with energy bills for households will only last until April, with a review to find a "new approach" that will "cost the taxpayer significantly less".
He said: "The biggest single expense in the growth plan was the energy price guarantee. This is a landmark policy supporting millions of people through a difficult winter and today I want to confirm that the support we are providing between now and April next year will not change.
READ MORE: Urgent warning issued to anyone with an Amazon account
"But beyond that, the Prime Minister and I have agreed it would not be responsible to continue exposing public finances to unlimited volatility in international gas prices.
"So I'm announcing today a Treasury-led review into how we support energy bills beyond April next year. The objective is to design a new approach that will cost the taxpayer significantly less than planned whilst ensuring enough support for those in need.
"Any support for businesses will be targeted to those most affected and the new approach will better incentivise energy efficiency."
In another mini-budget reversal, Mr Hunt said the basic rate of income tax will remain at 20p indefinitely. The rate had been due to reduce to 19p from April under Kwasi Kwarteng's mini-budget, a year earlier than Rishi Sunak had planned.
But Mr Hunt said it would now stay at 20p until economic conditions allowed a reduction. He said: "It is a deeply held Conservative value - a value that I share - that people should keep more of the money that they earn.
"But at a time when markets are rightly demanding commitments to sustainable public finances, it is not right to borrow to fund this tax cut."
Receive newsletters with the latest news, sport and what's on updates from the Liverpool ECHO by signing up here
READ NEXT:
Updates as police raid homes linked to serious organised crime
Sudden death of man found in house treated as unexplained
Sainsbury's, Asda and Tesco warnings as customers urged not to eat soup and more
