Energy bills capped at £2,500 a year from October, PM Liz Truss announces
Typical households will pay no more than £2,500 a year on gas and electricity bills from the start of October, Prime Minister Liz Truss has announced.
Ms Truss said the new price guarantee will last for two years and comes in addition to the £400 payment to households promised by former chancellor Rishi Sunak.
The prime minister said the measure would save the average household £1,000 a year.
A six-month scheme for businesses and public sector organisations will provide equivalent support over the winter.
There is currently no cap on energy costs for businesses and a specific figure on support has not been given due to differences in how the energy market operates.
The measure, expected to cost tens of billions, will be funded through more government borrowing.
Labour argues a freeze should be paid for through a windfall tax on the profits of oil and gas producers instead, something the PM has dismissed out of hand.
