The historic intervention comes after a failure to invest in home-grown energy and drive reform in the energy market. Today’s action will deliver substantial benefits to the economy - boosting growth and curbing inflation by 4-5 points, reducing the cost of servicing the national debt. Those households who do not pay direct for mains gas and electricity – such as those living in park homes or on heat networks – will be no worse off and receive support through a new fund. The new guarantee will apply to households in Great Britain, with the same level of support made available to households in Northern Ireland.
It comes in addition to the announced £400 energy bills discount for all households and together they will bring costs close to where the energy price cap stands today. This will save the average household £1,000 a year based on current energy prices from October. The guarantee will supersede the existing energy price cap. This takes account of temporarily removing green levies, worth around £150, from household bills. Under new plans, a typical UK household will pay no more than £2,500 a year on their energy bill for the next two years from 1st October, through a new Energy Price Guarantee which limits the price suppliers can charge customers for units of gas. Prime Minister Liz Truss sets out decisive action to support people and businesses with their energy bills and tackle the root causes of the issues in the UK energy market through increased supply – ensuring the country is not left in the same position again. Package will boost growth and curb inflation rises.New plans will tackle the root causes of problems in the energy market by boosting domestic energy supply.Businesses and public sector organisations will see equivalent support over the winter.Typical household will save an average of £1,000 a year on their energy bills, under a new two-year Energy Price Guarantee.See what Help for Households is available This applies to all households in Great Britain, with the same level of support made available to households in Northern Ireland. This will save the average household at least £1,000 a year based on current energy prices from October and is in addition to the £400 energy bills discount for all households. This is automatic and applies to all households. From 1st October, a new ‘Energy Price Guarantee’ will mean a typical UK household will now pay up to an average £2,500 a year on their energy bill for the next two years.
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