LIZ Truss has today confirmed that energy bills WILL be frozen at £2,500 in a major intervention to protect Brits from crippling price hikes.
The freeze will come in on October 1 and will last for two years.
The new PM will cap the wholesale cost of gas to stop families paying eye-watering sums to heat their homes this winter.
Businesses will have a separate six month scheme offering the same support.
The government could extend that scheme for the most vulnerable industries, such as pubs.
Households will still get a £400 cost of living rebate on bills this winter.
Millions of Brits excluded by the price cap will get support from a new fund
Bills had been set to rise to £3,000 in January before jumping to more than £6,000 in April.
Ms Truss announced her radical plan in the House of Commons this morning.
The PM also lifted the ban on fracking and launch drilling in the North Sea, in an effort to dramatically boost Britain’s energy supplies.
Her huge spending splurge – set to be bigger than furlough – will be funded by more borrowing – but Ms Truss believes it’s worth it to stop Brits being hammered by unaffordable prices.
Top Cabinet Minister Simon Clarke said this morning the economy will suffer “enormous damage” if the Government fails to control surging energy prices.
Meanwhile, one million people receiving tax credits began receiving the first tranche of their Cost of Living Grant from the HMRC at the end of last week.
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Read our live blog below for the latest updates….
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Keir Starmer hits back at Liz Truss following energy announcement
Sir Keir Starmer has hit out at Liz Truss, saying it’s unfair consumers rather than energy giants will ultimately pay for today’s package through general taxation.
Sir Keir said: “She’s making that choice, even though households and public services need every penny they can get.
“Working people are paying for the cost of living crisis. This is the wrong choice for working people.”
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Martin Lewis outlines new energy plan
Martin Lewis, the UK’s Money Saving Expert, has outlined the PM’s new plan to reduce bills this winter.
He outlined the 15 key points of the plan.
These include outlining how much the average Brit will pay per year for the next two years, and if hard-up workers will still get the help previously promised by Rishi Sunak.
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The full details of the government’s help for business
In a press release released by the government, Liz Truss’s team has confirmed what help business will get in the coming months.
The release states: “As businesses have not benefited from an energy price cap and are not always able to fix their energy price through fixed deals, many are reporting projected increases in energy costs of more than 500%.
“A new six-month scheme for businesses and other non-domestic energy users (including charities and public sector organisations like schools) will offer equivalent support as is being provided for consumers. This will protect them from soaring energy costs and provide them with the certainty they need to plan their business.
“After this initial six-month scheme, the Government will provide ongoing, focused support for vulnerable industries. There will be a review in 3 months’ time to consider where this should be targeted to make sure those most in need get support.”
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30 ways to save cash during the cost of living crisis
Every little change can help when bills are rising the way they are.
Here is a list of ways Brits have been saving money during the cost of living crisis.
- Turn the heating down
- Making sure lights are always turned off
- Buy own brand products at the supermarket
- Take lunch into work
- Turn off all electrics when not using/out of the home
- Wear a jumper instead of turning on the heating
- Save leftovers for another meal
- Using discount vouchers
- Use a clothesline instead of a tumble dryer
- Collect coupons and money off vouchers
- Buy second class stamps instead of first
- Buy eco-friendly/energy saving bulbs
- Cut down going out
- Shop in budget supermarkets
- Wait for the sales when making purchases
- Buy food and toiletries in bulk
- Turning off all the plugs before leaving the house
- Haggle my home/car insurance
- Price compare at different grocery stores
- Borrow books from your library
- Shop at second hand/charity stores
- Using public transport instead of taxis
- Cut your own hair
- Spend your weekend taking part in free activities
- Go to supermarkets in the evening for yellow sticker deals
- Grow your own vegetables and herbs
- Drink water when eating in restaurants
- Using an older or hand-me-down phone rather than buying the newest model
- Reduce your television/internet packages to the bare minimum
- Selling anything you possibly can on an online marketplace
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Liz confirms that the ban on fracking in Britain WILL be lifted.
The government will be launching a new fracking licencing round, which is expected to lead to over 100 new licences being awarded.
Drilling could then begin in as little as six months.
The PM said: “We will speed up all deployments of all clean and renewable technologies, including hydrogen, solar, carbon capture and storage and wind, where we already are a world leader in offshore generation, renewable and nuclear generations generators.”
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Energy Price Guarantee, the key facts
Here is what you need to know about the government’s new energy plans.
Average household energy bills WILL be capped at £2,500.
The freeze will come in on October 1 and will last for two years.
It will save typical households around £1,000 per year.
The government says the package will cost in the “tens of billions” but won’t give a specific amount.
Estimates suggest it’s around £150 billion.
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Martin Lewis gives Brits an outline of the new Energy Price Guarantee
The UK’s resident money-saving expert has taken to Twitter to outline the PM’s drastic new plan to solve the cost of living crisis.
In a six-minute video, Lewis outlined all the key details of the Energy Price Guarantee.
He made clear to note that Brits will still receive the £400 payment promised by Rishi Sunak earlier this year.
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The Energy Price Guarantee, a visual explainer
Here is a simple visual explainer for the PM’s new cost of living plan.
Under the new scheme, energy bills will be capped at £2,500.
This is in contrast to the staggering £3,549 expected before the intervention.
Brits will still get the £400 energy payment this autumn.
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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
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‘Whose side are you on?’
Sir Keir Starmer has hit out at Liz Truss, saying it’s unfair consumers rather than energy giants will ultimately pay for today’s package through general taxation.
Sir Keir said: “She’s making that choice, even though households and public services need every penny they can get.
“Working people are paying for the cost of living crisis. This is the wrong choice for working people.”
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We must never be in this situation again
The PM says that the government will use the next two years to plan to ensure that the UK never finds itself in another energy crisis again.
Liz will launch two new reviews:
- A review of energy regulation to find a new approach which will address supply and affordability for the long term.
- A review to ensure the UK delivers net zero by 2050 in a way that is pro-business and pro-growth.
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100 new fracking licences to get the go ahead
Liz confirms that the ban on fracking in Britain WILL be lifted.
The government will be launching a new fracking licencing round, which is expected to lead to over 100 new licences being awarded.
Drilling could then begin in as little as six months.
The PM said: “We will speed up all deployments of all clean and renewable technologies, including hydrogen, solar, carbon capture and storage and wind, where we already are a world leader in offshore generation, renewable and nuclear generations generators.”
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New Energy Supply Task Force formed
A new Energy Supply Task Force will be formed by the government to find ways of bringing down the cost of gas and electricity.
Liz said: “They’re already negotiating new long term energy contracts with domestic and international gas suppliers to immediately bring down the cost of intervention.”
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‘We can’t tax our way to growth’
Liz rejects calls from Labour for a windfall tax on oil and gas giants to pay for her energy price guarantee.
The PM said: “Calls for this to be funded through a windfall tax that would undermine the national interest by discouraging the very investment we need.”
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Business energy bills will be capped too, but only for six months
Businesses will have a separate six month scheme offering the same support as households.
The government could extend that scheme for the most vulnerable industries, such as local pubs.
Emergency legislation will be brought forward to get the plan started.
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Energy price guarantee announced
Average household energy bills WILL be capped at £2,500.
The freeze will come in on October 1 and will last for two years.
It will save typical households around £1,000 per year.
Government says the package will cost in the “tens of billions” but won’t give a specific amount.
Estimates suggest it’s around £150 billion.
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Liz leaves No10
Liz Truss has left Downing Street to head for Parliament, where she is set to announce her major energy price plan at around 11.30am.
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Liz Truss to unveil energy plan at 11.30
Liz Truss will unveil her plan to protect Brits from crippling energy bills in the Commons at around 11.30am.
The PM is expected to prevent bills from rising above £2,500 by capping the wholesale cost of gas.
It will save Brits from paying eye-watering sums to heat their homes after bills were due to skyrocket to around £6,000 next year.
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Hundreds of pets are being abandoned as owners can’t afford care
Charities such as the RSPCA and Blue Cross have asked owners to turn to friends and family for help with costs.
The number of animals being dumped has increased dramatically, showing a 17 per cent rise from 2020 to 2021
This year, the Mirror reported “another 24 per cent increase this year.”
Dermot Murphy, chief inspectorate officer at the RSPCA, told the publication that dumping pets is “unthinkable and heartbreaking.”
He said: “We understand that sometimes the unexpected can happen – the pandemic and cost of living crisis proved that – but there is never an excuse to abandon an animal.
“There are always other options for anyone who has fallen on hard times and can no longer afford to keep their pet.”
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Boots launch new £1.50 range
The range is “easily identifiable” so customers can find the “lowest prices”.
A new essential range has been launched by the retail giant, with 60 items across toiletries, skincare, dental care and period products.
It went live from the Boots website yesterday.
Products will also be available in store, in more than 1,000 Boots retailers in the UK.
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Charities plea for governmental help
‘We’re needed most’ now, says charities.
Services helping the homeless have warned they may need to close completely due to the cost of living crisis.
Charities told the i newspaper that they are “staring into the abyss”.
St Martin, a Norwich based homelessness charity, told the publication at the start of the year it expected energy bills to rise by 50 pence.
Now it is looking at an 80 per cent rise.
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Mary Portas’ message about small businesses to Liz Truss
Speaking on This Morning with Holly and Phil yesterday morning, Mary Portas, former government advisor, spoke about the perils small businesses face.
The cost of living crisis could hit small businesses, but Brits want to shop at small businesses now “more than ever”.
She said: “I think we don’t realise the power that we have.
“I did a TED talk and at the end of it I just said” ‘Every pound you spend is a vote on how you want to live’.”
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Martin Lewis on the best food deals for Brits
The UK’s resident MoneySavingExpert has explained a series of ways to get cheap deals on your food as prices continue to rise.
A number of Britain’s chains provide customers with great deals if you sign up for their loyalty apps.
This includes:
- Krispy Kreme: The ‘Friends of Krispy Kreme’ rewards app can grab you a free doughnut of your choice, plus a free glazed doughnut for your children and significant other on their birthdays too
- Greggs: Download its app and register for its rewards scheme to get a voucher for a free cupcake, cream cake or doughnut, valid for a month after it’s issued
- Hotel Chocolat: A VIP card can get you a ‘surprise gift’ for your birthday
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Be sure to turn off ‘vampire appliances’
So-called “vampire appliances” drain energy when left on standby or when used inefficiently – such as a TV and extra fridges.
Desktop computers and electric towel rails are among some of the worst offenders – they could be adding up to £500 onto your yearly costs.
Turn them off correctly – by switching them off at the plug and NOT via the standby button – to avoid a big bill sting.
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Birmingham declares cost of living ‘state of emergency’
The head of the Birmingham City Council has declared a “state of emergency” in the city, as bills continue to skyrocket.
Speaking yesterday, Ian Ward declared the cost of living crisis would require a “pandemic level response”.
He said: “We have been hit by a perfect storm: inflation is at the highest levels for over 40 years and energy prices are rising at the fastest rate in living memory.
“Bills will rise again from 1 October with the energy price cap rising to £3,549 per year for dual fuel supply with the average household likely to spend over £1,000 on energy bills between now and the end of the year.”
“In January 2023, the energy price cap is due to rise again with bills likely to rise to just under £5,500 per year in January and over £6,500 in April 2023.
“Every person in every part of this city will be affected in some way or another. The negative impacts of the rise in the cost of living are on a par with the pandemic: and consequently, require a pandemic level of response.”
