MOST families will pay no more than £2,500 for energy bills under a radical plan to cap prices for two years unveiled by Liz Truss today.
The new PM has announced a multi-billion package to save typical Brits £1,000 by protecting them from crippling global gas costs.
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Stay up to date with Liz Truss’ energy plan on The Sun’s live blog.
Bills were set to rise to £3,500 in October and more than £6,000 next April in a terrifying prospect for most households.
However in a mammoth intervention – which could cost more than furlough – Ms Truss is now going to cap costs from October 1, with the typical family paying no more than £2,500.
Under the plan to cap wholesale costs ministers estimate a family in a detached house will spend no more than £3,300, a semi-detached £2,650, a bungalow £2,450 and a flat £1,750.
The PM told MPs that “extraordinary challenges call for extraordinary measures” as she laid out the huge plan.
In a huge intervention:
- Ms Truss confirmed the package comes in addition to the £400 energy bills rebate
- She said the overall cost of the package would be revealed later this month, but estimates are £150billion
- Fracking and drilling in the North Sea will resume to boost our energy reserves
- Ms Truss hinted the Chancellor could slash fuel duty at the mini-Budget in a couple of weeks
Families will still get the £400 energy rebate that will start to be paid back from next month.
And Ms Truss confirmed that the package will apply in Northern Ireland, which uses different energy suppliers.
HOW MUCH WILL YOU SAVE?
THE typical family will pay no more than £2,500 on energy bills – but it depends on how much you use.
Here are the estimates on how the cap will affect YOU:
Detached house
Under October price cap: £4,700
Under new cap: £3,300
Savings: £1,400
Semi detached
Under October price cap: £3,800
Under new cap: £2,650
Savings: £1,150
Mid terraced
Under October price cap: £3,300
Under new cap: £2,350
Savings: £950
Bungalow
Under October price cap: £3,500
Under new cap: £2,450
Savings: £1,050
Flat
Under October price cap: £2,450
Under new cap: £1,750
Savings: £700
Businesses will benefit from the scheme for just six months, but vulnerable firms could get more support.
Ms Truss also launched new drilling missions for oil and gas in the North Sea and lifted the ban on fracking in a bold bid to boost Britain’s energy supplies.
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She said: “Decades of short-term thinking on energy has failed to focus enough on securing supply – with Russia’s war in Ukraine exposing the flaws in our energy security and driving bills higher.
“I’m ending this once and for all. I’m acting immediately so people and business are supported over the next two years, with a new Energy Price Guarantee, and tackling the root cause of the issues by boosting domestic energy supply.”
Ms Truss also reckons the plan will help tame record inflation down by 5 per cent.
Levelling Up Secretary Simon Clarke told Sky News: “If we fail to act, if we don’t protect the economy against the shock of the size and scale we are talking about, then there is going to be enormous damage.
“In these circumstances I think the country will say and I think markets will respect that this is the most sensible thing to do.
“The Government is clear that a fiscally responsible approach sits at the heart of our plans but we cannot fail to respond to the magnitude of the moment.”
