LIZ Truss will today unveil her radical plans to help Brits pay their energy bills this winter – as prices are set to soar.
Here’s everything we know so far about her first major announcement as PM.
4
When is the announcement?
Yesterday, Ms Truss told MPs she would reveal her plan today – with a Commons statement expected late morning.
She will also speak at the start of an debate on energy, with the new Business Secretary, Jacob Rees-Mogg, expected to speak at the end.
What is the plan?
Energy bills are expected to be frozen at around £2,500 a year, a sum which is the current price cap of £1,971, plus the £400 in energy bill rebates already announced by Rishi Sunak when he was Chancellor.
The Sun understands it’s likely that the unit price of energy will be frozen at a set price.
Anything above that will be paid for by the Government.
The package will last for four to six months, but is likely to be extended as prices are set to remain high until the end of next year.
Ministers acknowledged that the price will still be a lot of extra cash for many households, so hope that demand will be dampened by people turning their heating down in order to avoid a shortage over the winter.
But insiders say that businesses are going to have to promise to invest hugely in generating more energy to get the Government support.
That will include more renewables, and beefing up their production.
Ministers are also set to announce they will green light more oil and gas licences – to get extra fuel out of the North Sea.
Most read in News Money
What has Truss said?
Ms Truss told MPs during her first PMQs her plan would give worried families and businesses help today.
She told the Commons: “I will make sure that in our energy plan we will help to support businesses and people with the immediate price crisis, as well as making sure there are long-term supplies available.
“I understand that people across our country are struggling with the cost of living and they are struggling with their energy bills.
“That is why I, as Prime Minister, will take immediate action to help people with the cost of their energy bills and I will be making an announcement to this House on that tomorrow and giving people certainty to make sure that they are able to get through this winter and be able to have the energy supplies and be able to afford it.”
4
4
Who will it cover?
She insisted on Tuesday it would mean help for families who are worried about the price cap increasing to £3,500 at the start of October.
And it will also include help for businesses too – with warnings that seven in ten pubs could close as they can’t afford their energy bills.
The Sun understands a price cap for small businesses may be introduced.
Or they may ask energy firms to set a cap on how much they sell it to other businesses for.
Who will pay for it?
Ms Truss previously said she wouldn’t support another windfall tax to get the extra money.
But she won’t ditch the one that has already been put in place, her spokesperson said yesterday.
And it appears that ministers have ruled out lending the money to banks and then putting a levy on Brits’ bills for decades to come.
It’s likely that the money will be borrowed – with the Chancellor tweaking fiscal rules to deal with what he will call an emergency situation.
That money will be paid back more slowly over time.
And the borrowed cash will be rolled into Britain’s general taxation bill.
Ms Truss has vowed no “new” taxes while she is PM.
4
