New data reveals that Edinburgh North and Leith residents would be able to save an estimated average of £1,294 through Government-funded home insulation and heat pump installation
On weekends throughout February and March, Greenpeace Edinburgh spoke to people in Edinburgh about their energy bills, and the solutions to the cost of living and climate crisis.
Residents wrote eight messages to Deirdre Brock, MP for Edinburgh North and Leith, about their worries. These messages will be delivered next week, as part of the Warm This Winter mass lobby.
Local people also used the Affordable Energy Calculator [1] to see how much money they would save on their energy bills if our homes were well insulated and had cheaper, cleaner energy.
Carrie from Newhaven wrote: ‘Help to combat energy costs has helped but costs are still too high. Funding for new home-owners to help insulate windows is needed.’
Mark, a resident in North Edinburgh, wrote: ‘It would be great to see someone in the government stand up for lower energy bills and preparing homes for becoming sustainable and economical to maintain.’
Another local, Ros, wrote: ‘We need to prioritise those who need help during this time and make the cost of living crisis a lot more manageable than it currently is.’
Ian, a volunteer from Leith said: ‘The messages that people in Edinburgh North and Leith have written to Deirdre Brock MP show how people are still having to choose between heating and eating.
But it doesn’t have to be this way. We need the Government to commit more money for home insulation and heat pumps to make our homes warmer, our bills cheaper and our carbon emissions lower.’
Keeping the Energy Price Guarantee at £2,500 per month rather than raising it to £3000 is welcome but 7.5 million households in the UK will continue to be in fuel poverty from 1st April. If the Government makes the investment necessary to meet their currently unfunded 2030 targets for insulation, and support a UK heat pump programme, a typical UK home would see a difference of £1,832 a year, with savings ranging from around six hundred to several thousand pounds.
Data from the Affordable Energy Calculator shows that people in Edinburgh North and Leith could save an estimated average of £1,294 on their energy bills by 2030.
Hugh who lives in this constituency said: “‘I live in a rented flat in Leith and I was amazed to see that I would save £1,083 on my energy bill in 2030 if my home was properly insulated and was powered by a heat pump.
“I’d definitely recommend checking out the Affordable Energy Calculator to see how much you could save if the Government funded a UK-wide home insulation and heat pump programme.’
Ian added: “On 31st March, Greenpeace volunteers and other constituents have invited Deirdre Brock to meet as part of the Warm This Winter Coalition’s mass lobby.
“We are asking Deirdre Brock to pledge to call for the expansion of Government-funded home insulation schemes, heat pump installation, more investment in renewable energy, and further support for vulnerable households with their energy bills.
“If you live in Edinburgh North and Leith, we’d love for you to join us in inviting Deirdre Brock to meet, or if you live elsewhere, check out the online map [below] to see if a meeting has already been organised with your MP.”
The Energy Price Guarantee (EPG) will be kept at £2,500 for an additional three months from April to June, saving a typical household £160.
Energy prices are 50% lower than forecast in October, but remain high, with this support helping bridge the gap to lower prices forecast from the end of June.
Comes as Chancellor set to confirm new cost of living support at Spring Budget, including ending the pre-payment meter premium and help with childcare costs.
MILLIONS of households will get more support with high energy bills to help ease the cost of living, the Chancellor has announced today ahead of the Spring Budget.
The Energy Price Guarantee, which is protecting households by capping typical energy bills at £2,500, will be maintained at the same level for a further three months over April, May, and June, worth £160 in total for a typical household.
The Chancellor is announcing the extension today (15 March) as part of his Spring Budget, which focuses on easing the impact of rising prices, delivering on our promise to halve inflation, and growing the economy by supporting more people into work.
Government support has already cut the typical family energy bill by over £1,300 since October, stopping the average household energy bill hitting £4,279 a year this winter.
The Chancellor’s three-month extension of the Energy Price Guarantee at £2,500 means households won’t feel the full force of Ofgem’s Price Cap between April and June – which stands at £3,280 – helping to bridge consumers into the summer.
Lower wholesale gas prices are expected to feed through to lower household energy bills from July, where Cornwall Insight data suggests the Ofgem Price Cap will reach an estimated £2,100 a year for a typical household.
From April, more support is coming online with 8 million low income and vulnerable households set to receive at least £900 in cash payments over the next year, benefits and pensions set to rise by over 10 per cent, and the National Living Wage increasing to a record £10.42 an hour, so that it always pays to work.
The Spring Budget will go even further, providing hundreds of pounds more in help with childcare costs for parents on Universal Credit and ending the energy premium paid by households who use pre-payment meters, which will save 4 million families £45 a year from July.
Prime Minister Rishi Sunak said: “We know people are worried about their bills rising in April, so to give people some peace of mind, we’re keeping the Energy Price Guarantee at its current level until the summer when gas prices are expected to fall.
“Continuing to hold down energy bills is part of our plan to help hardworking families with the cost of living and halve inflation this year.”
Chancellor Jeremy Hunt said: “High energy bills are one of the biggest worries for families, which is why we’re maintaining the Energy Price Guarantee at its current level.
“With energy bills set to fall from July onwards, this temporary change will bridge the gap and ease the pressure on families, while also helping to lower inflation too.”
Energy Secretary, Grant Shapps said: “Putin’s illegal war has cost British families, which is why we’ve stepped in to pay around half of the typical household energy bill.
“With wholesale prices falling families will start to benefit, but in the meantime we’re stepping back in with the Energy Price Guarantee to prevent the typical electricity and gas bill exceeding £2,500. It’s just part of our plan to help families this winter.”
At Autumn Statement the Chancellor announced that the EPG was due to rise to £3,000 on April 1, with the government then expecting to borrow £12 billion to fund this support. Since then, energy prices have fallen by 50%, cutting the borrowing needed to fund energy support by two- thirds to £4 billion.
The change announced today also follows the latest Ofgem Price cap of £3,280 from April to June which, in large part, sets the cost for this three-month extension. Households would pay the full Ofgem price cap rate if there was no Energy Price Guarantee.
Holding down energy bills is also part of the government’s plan to halve inflation this year, and in November the Office for Budget Responsibility said that the EPG would lower the peak rate of inflation.
The First Minister has convened a second summit with energy companies and advice organisations.
Further actions to support consumers and businesses through the winter have been agreed at yesterday’s virtual summit between energy companies and advice organisations and Ministers.
The energy cost crisis summit discussed this week’s reversals to UK Government measures set out since the previous summit, and agreed longer-term certainty is urgently needed ahead of the anticipated energy price cap increase, currently due in April.
First Minister Nicola Sturgeon said: “The curtailing of the Energy Price Guarantee by the Chancellor of the Exchequer earlier this week has eradicated what meagre certainty people and businesses had over their bills and finances in the short to medium-term.
“Even the current cap of £2,500 until April – while better than a rise to £3,500 – is still a very significant increase for households who are already struggling to pay their bills and heat their homes. Without further mitigation the increase to £2,500 under the Energy Price Guarantee will see an additional 150,000 households in extreme fuel poverty.
“The deficiencies in the UK Government’s package mean we are still in an emergency situation. The economic outlook has been made far worse by other aspects of the mini-budget – most of which have now had to be reversed entirely.
“The Scottish Government is working hard within its limited powers and finite budget to support people, business, public services and the economy. Part of that work will involve ongoing engagement with energy companies and advice organisations throughout the winter to see how, individually and collectively, we can alleviate the huge challenges people are facing as well as signposting existing schemes and support that is available.
“It is clear however that more substantial reform of the energy market is needed to address the issue in the long term, and the power to do so lies with the UK Government.”
From today, the UK Government’s Energy Price Guarantee will limit the price households pay per unit of gas and electricity they use
The Energy Price Guarantee reduces household energy bills over the next two years, with a typical family paying around £2,500, saving £1,000 per year
Businesses, charities and public sector organisations will pay less than half the expected prices this winter under the Energy Bill Relief Scheme from October
Government energy support makes up the largest single component of the Growth Plan, protecting jobs and livelihoods and curbing inflation by 5 percentage points
Households, businesses and public sector organisations across the country will be protected from significant rises in energy bills, thanks to new government support taking effect from today (Saturday 1 October).
Without Government action, average household energy bills under the energy price cap had been due to rise to around £3,500 a year in October – a rise of 80% on current bills. Next year, they were estimated to increase even further to as high as £6,500.
From today, the Government’s Energy Price Guarantee will limit the price households pay per unit of gas and electricity they use.
It means a typical household in Great Britain will pay around £2,500 per year, starting this month for the next two years – saving an average £1,000 a year on their energy bills.
Households will also see the first instalment of the £400 Energy Bill Support Scheme in their October electricity bill. The discount will be automatically applied monthly in six instalments between October 2022 and March 2023.
Thanks to the government’s support, energy bills will now be close to where they’ve been for the past six months – and it will curb inflation by 5 percentage points, boosting economic growth, controlling the rising cost of goods, and reducing the cost of servicing the national debt.
This necessary intervention makes up the biggest proportion the Government’s fiscal package set out in the Growth Plan.
Prime Minister Liz Truss said: “I know people across the country are anxious about their energy bills, which is why we have acted quickly to help them.
“Livelihoods and businesses were at stake. The government’s energy support limits the price they pay for gas and electricity, shields them from massive bill increases, and is expected to curb inflation too.
“The cost of not acting would have been enormous. To make sure the British public is not left in this position again, we are also fixing the problem at its source by scaling up home-grown energy and reducing reliance on foreign supplies to boost our energy security and independence.”
The UK Government is also urging people today to stay alert to scams and fraudulent messages. There is no need to apply for the schemes, with most customers receiving today’s support automatically through their electricity bill.
Households in Northern Ireland will also receive the same support through the Energy Price Guarantee from November, with support for October bills backdated so they see the same benefit overall.
Those who might live in an area of the UK that is not served by the gas grid or use alternative fuels such as heating oil to heat their home will receive a £100 payment to support them with their energy bills.
Business and Energy Secretary Jacob Rees-Mogg said: “While Putin’s weaponisation of energy has driven energy prices to record highs, we will not let his regime harm this country’s businesses and households.
“Unprecedented government support is beginning this weekend, protecting families and businesses across the country from what was going to be an 80% increase in energy bills this winter.
“I also urge people today to stay alert to scams. This support will reach people automatically and there is no need to apply.”
British businesses have also been experiencing significant increases in energy costs, with some reports of more than 500%. Businesses, charities and public sector organisations will also be protected through the Government’s Energy Bill Relief Scheme from October over the next six months.
This support is equivalent to the Energy Price Guarantee put in place for households and similarly discounts price per unit of gas and electricity, meaning businesses and others will pay wholesale energy costs well below half of expected prices for this winter.
In parallel, the Government is also taking decisive steps to tackle the root cause of the issues in the UK energy market through boosting British energy supply and increasing independence to ensure this doesn’t happen again.
This includes the work of our Energy Supply Taskforce, a new oil and gas licensing round, lifting the moratorium on UK shale gas production, and driving forward progress on nuclear and renewables.
As of today (30 September) the Department for Work and Pensions has processed almost six million £150 Disability Cost of Living payments worth around £900 million.
This follows the government’s announcement on 20 September that those who had confirmed payment of their disability benefit for 25 May will receive the £150 automatically, with the vast majority to be paid by early October.
The vast majority of eligible claimants who were due to receive the one-off £150 payment from the DWP by early October have now had their payment processed.
The payment will help disabled people with the rising cost of living, acknowledging the higher costs they often face, such as for care and mobility needs.
There will be some cases – such as those who gained entitlement to this payment at a later date or where payments were rejected due to invalid account details – who will not be paid by the beginning of October. These will be paid automatically as soon as possible.
The £150 cost of living payments for disabled people from the government are part of a £37 billion package of support, which will see millions of low income households receive at least £1,200 this year to help cover rising costs.
This also follows the Prime Minister’s announcement of a new Energy Price Guarantee for the next two winters, saving households on average £1,000 a year on their energy bills.
Further information
The Energy Price Guarantee (EPG) will apply from 1 October and will discount the unit cost for gas and electricity use. This guarantee, which includes the temporary suspension of green levies, means that from 1 October a typical household will pay no more than £2,500 per year for each of the next two years. This is in addition to the £400 Energy Bill Support Scheme.
On top of the EPG and £150 Disability Cost of Living Payment, there is an extra £150 for properties in Council Tax bands A-D in England. On top of this, disabled people on low incomes may also be eligible for the other Cost of Living payments totalling up to £650 – households in receipt of a means-tested benefit received the first of the two automatic Cost of Living payments of £326 from 14 July. The second means-tested payment of £324 will be issued later this year.
Eligibility
Those who receive the following disability benefits may be eligible for the one-off payment of £150 in September: Disability Living Allowance, Personal Independence Payment, Attendance Allowance, Scottish Disability Benefits (Adult Disability Payment and Child Disability Payment), Armed Forces Independence Payment, Constant Attendance Allowance and War Pension Mobility Supplement.
The majority of those who had confirmed payment of their disability benefit for 25 May have now been paid. For those who have still to be paid, are awaiting confirmation of their disability benefits on 25 May, or who are waiting to be assessed for eligibility to receive disability benefits, the process may take longer but payments will still be automatic.
You must have received a payment (or later receive a payment) of one of the qualifying benefits for 25 May 2022 to get the payment.
Prime Minister Liz Truss’s opening speech on the energy policy debate in the House of Commons yesterday:
Earlier this week I promised I would deal with the soaring energy prices faced by families and businesses across the UK. And today I am delivering on that promise.
This Government is moving immediately to introduce a new Energy Price Guarantee that will give people certainty on energy bills.
It will curb inflation and boost growth.
This Guarantee – which includes a temporary suspension of green levies – means that from 1st October a typical household will pay no more than £2,500 per year for each of the next two years, while we get the energy market back on track.
This will save a typical household £1,000 a year. It comes in addition to the £400 Energy Bills Support Scheme.
This Guarantee supersedes the Ofgem price cap, and has been agreed with energy retailers.
We will deliver this by securing the wholesale price for energy, while putting in place long-term measures to secure future supplies at more affordable rates.
We are supporting this country through this winter and next, and tackling the root cause of high prices, so we are never in this position again.
For those using heating oil, living in park homes or those on heat networks, we will set up a fund so that all UK consumers can benefit from equivalent support.
We will also support all businesses, charities and public sector organisations with their energy costs this winter – offering an equivalent guarantee for 6 months.
After those 6 months we will provide further support to vulnerable sectors, such as hospitality, including our local pubs.
My Rt Hon Friend the Business Secretary will work with businesses to review where this should be targeted to make sure those most in need get support. This review will be concluded within 3 months, giving businesses certainty.
In the meantime, companies with the wherewithal need to be looking for ways they can improve energy efficiency and increase direct energy generation
We will be bringing forward emergency legislation to deliver this policy. And my Rt Hon Friend the Chancellor of the Exchequer will set out the expected costs as part of his fiscal statement later this month.
I can tell the House today that we will not be giving in to calls for this to be funded through a windfall tax.
That would undermine the national interest by discouraging the very investment we need to secure home-grown energy supplies. You can’t tax your way to growth.
Instead, we are taking an approach which is pro-growth, pro-business and pro the investment we need for energy security.
This is the moment to be bold. We are facing a global energy crisis and there are no ‘cost-free’ options.
There will be a cost to this intervention. However we are also acting immediately to defray the cost of this intervention in three ways.
Firstly, by ramping up supply.
Following on from the successful vaccine taskforce, we have created a new Energy Supply Taskforce under the leadership of Maddy McTernan.
They are already negotiating new long term energy contracts with domestic and international gas suppliers to immediately bring down the cost of this intervention.
We are also accelerating all sources of domestic energy, including North Sea oil and gas production.
We will be launching a new licensing round, which we expect to lead to over 100 new licences being awarded.
And we will speed up our deployment of all clean and renewable technologies including hydrogen, solar, carbon capture and storage, and wind… where we are already the world leader in offshore generation.
Renewable and nuclear generators will move onto Contracts for Difference to end the situation where electricity prices are set by the marginal price of gas.
This will mean generators are receiving a fair price, reflecting their cost of production, further bringing down the cost of this intervention.
Secondly, today’s action will deliver substantial benefits to our economy, boosting growth which increases tax receipts and gives certainty to business.
This intervention is expected to curb inflation by up to 5 percentage points, bringing a reduction in the cost of servicing government debt.
Thirdly, this morning, together with the Bank of England, we will set up a new scheme, worth up to £40 billion, to ensure that firms operating in wholesale energy markets have the liquidity they need to manage price volatility.
This will stabilise the market and decrease the likelihood that energy retailers need our support, like they did last Winter.
By increasing supply, boosting the economy and increasing liquidity in the market we will significantly reduce the cost to government of this intervention.
As well as dealing with the immediate situation we face, we are also dealing with the root causes.
Energy policy over the past decades has not focused enough on securing supply.
There’s no better example than nuclear, where the UK has not built a single new nuclear reactor in 25 years.
It’s not just about supply. The regulatory structures have failed, exposing the problems of having a price cap applied to the retail but not the wholesale market.
All of this has left us vulnerable to volatile global markets and malign actors in an increasingly geopolitical world.
That is why Putin is exploiting by weaponising energy supplies as part of his illegal war on Ukraine.
So as well as the action we are taking today on bills, we will use the next 2 years to make sure that the United Kingdom is never in this situation again.
I will be launching two reviews.
Firstly, a review of energy regulation to fix the underlying problems. We want a new approach which will address supply and affordability for the long term.
Secondly, we will conduct a review to ensure we deliver net zero by 2050 in a way that is pro-business and pro-growth. This review will be led by my Rt Hon Friend the member for Kingswood.
We are delivering a stable environment that gives investors the confidence to back gas as part of our transition to net zero.
We will end the moratorium on extracting our huge reserves of shale, which could get gas flowing in as soon as six months, where there is local support.
We will launch Great British Nuclear later this month – putting us on the path to deliver up to a quarter of our electricity generation with nuclear by 2050.
As a result of these steps on shale and nuclear and the acceleration of renewables, I am today setting a new ambition for our country.
Far from being dependent on the global energy market and the actions of malign actors, we will make sure the UK a net energy exporter by 2040.
And my Rt Hon Friend the Business Secretary will set out a plan in the next two months to make sure we achieve this.
I know businesses and families are very concerned about how they will get through this winter.
That’s why I felt it was important to act urgently to provide immediate help and support, as well as setting out our plan about how we are going to secure the UK’s future supplies.
This is part of my vision for rebuilding our economy.
Secure energy supply is vital to growth and prosperity. Yet it has been ignored for too long.
I will end the UK’s short-termist approach to energy security and supply once and for all.
That is what I promised on the steps of Downing Street.
Today we are acting decisively to deliver that pledge.
This will help us build a stronger, more resilient and more secure United Kingdom.
I commend this motion to the House.
UK GOVERNMENT BORROWING MORE TO BOLSTER OIL COMPANY PROFITS
Environmental campaigners have reacted to the UK Government plans for an energy price freeze funded by borrowing.
The UK Government will open a new licensing round for the North Sea next week, and is expected to give out over 100 permits for companies to look for more climate-wrecking oil and gas. This is despite climate science and energy experts warning that any new oil and gas projects will push the world well past dangerous climate limits.
Independent advisors have made it clear that increasing UK supply of oil and gas will have almost no impact on UK bills as prices are set by the international market.
Liz Truss also announced that her Government will lift the moratorium on shale gas. Scotland has a de facto ban on fracking.
In the first 6 months of 2022, 5 oil companies made over £80 billion in profits: Shell £16.6bn, BP £12.2bn, Exxonmobil £21.7bn, TotalEnergies £15.2bn, Chevron £14.5bn.
Friends of the Earth Scotland’s head of campaigns Mary Church said: “The impact of measures announced today to stop the immediate rise in household bills is welcome, but the approach taken by the new Prime Minister singularly fails to address the fundamental problems of a broken energy system that serves only to enrich oil company bosses and shareholders.
“The money the UK Government is borrowing will be pumped straight into the coffers of oil companies when it could have helped deliver the transition to clean, reliable renewables. People in the UK are being robbed by fossil fuel companies but instead of making them pay for the harm they are causing, Liz Truss has decided to borrow more money to keep paying the robbers.
“This energy price crisis is being driven by the price of fossil fuels and the only sure fire to prevent this happening again is a rapid and fair transition to renewable energy and a scaling up of energy efficiency.”
+ NORTH SEA OIL & GAS LICENCES “Burning oil and gas is driving the climate emergency that sees tens of millions displaced by floods in Pakistan and has brought extreme heatwaves and drought across the UK. The UK Government is denying the reality of climate change by encouraging companies to seek out more fuel for the fire that is engulfing the world.
“The Scottish Government must be willing to stand up to these reckless plans to expand fossil fuels and hand out more licences for oil and gas companies to explore and drill in the North Sea. Ministers at Holyrood must speak out and use all the tools at their disposal to block any plans to further lock us into the oil and gas that is driving both the climate and cost of living crises.”
+ FRACKING “The move to try reopen and force through fracking is a disgrace. Not only is the industry incredibly harmful in climate terms it also brings with it serious local health and environmental risks. Its laughable to suggest that fracked gas will deliver within 6 months. Communities have already successfully fought and stopped it in Northern Ireland, England and Scotland so wherever this dirty dangerous industry is proposed, it will be opposed once again.”
Commenting on the proposals announced by the government today to support households and businesses with energy bills, TUC General Secretary Frances O’Grady said: “Freezing energy bills this autumn is essential for families and to protect jobs and businesses.
“But the Prime Minister is making the wrong people pay. She should have imposed a much larger windfall tax on profiteering oil and gas giants. And she should have required all firms getting help with energy bills to commit to no lay-offs for the lifetime of the help, to protect livelihoods.
“And it’s not just energy bills soaring – so she needs to do more to help families get through the winter. That means a real plan to get wages rising, a big boost to universal credit, child benefit and pensions, and a massive rollout of home improvements to cut bills. And it’s time to bring energy retail into public ownership to make sure this crisis never happens again.”
The TUC says that the government should set out a programme to make UK living standards more resilient and the UK economy more resistant to a future crisis. This should include:
Increase the windfall tax to a fairer level relative to the excess profits oil and gas firms are making.
Rapid rollout of home energy efficiency and taking the energy retail companies into public ownership – including a new approach to energy pricing with a free band of energy to cover basic lighting, heating, hot water and cooking.
A plan to get pay rising for all workers – including stronger pay bargaining rights so that working people and their unions can make fair pay agreements across whole industries.
Increase the minimum wage to £15 an hour as soon as possible – by returning the UK to normal wage growth and having a more ambitious minimum wage target.
Social security that prevents poverty – universal credit and benefits should be raised to 80 percent of the national living wage, along with a significant boost to support for families with children.
Commenting on the Prime Minister’s decision to end the moratorium on fracking, Tom Fyans, director of campaigns and policy at CPRE, the countryside charity, said: ‘Giving fracking the green light is a hideous mistake.
“If the purpose is to tackle bank busting gas prices, it’s an exercise in futility. Even if we were to go full steam ahead on fracking, which nobody wants, least of all rural communities, it wouldn’t make a dent on the cost of energy anytime soon, or ever.
‘Any move to industrialise the countryside and belch yet more fumes into our carbon-soaked atmosphere will prompt a furious response from local communities, drawn out planning delays and nationwide protests. Hardly a proposal to keep families warm this winter, or lower bills in the future.
‘The new Chancellor got it right in March, when he said fracking “would take up to a decade to extract sufficient volumes — and it would come at a high cost for communities and our precious countryside.” Nothing has changed.
‘Proposals to offer local people discounts on their bills in exchange for environmental destruction on their doorsteps need to be seen for what they are – a feeble attempt to bribe vulnerable rural communities to accept an unpopular, unsafe and polluting process that will destroy their tranquility. Local communities need to make their voices heard loud and clear – they were right to resist before and should continue to do so.
‘The answer to the fossil fuel price crisis is to reduce usage with a mass insulation drive, alongside a clean energy sprint. There has never been a better time to transform our energy infrastructure to ensure a future of abundant green power.
‘Renewables are around nine times cheaper and far quicker to plug in than any alternative. Families facing the biggest drop in living standards on record need renewable energy to become the central pillar of a modernised energy system. And they need it to happen fast.’
A LEADING property association has praised the Government’s package of measures to help those unable to afford rising energy costs.
The National Association Of Property Buyers said the Prime Minister’s “swift and decisive intervention” would help many.
Spokesman Jonathan Rolande said: “Looking at the energy and inflation crisis from the perspective of the property market, we welcome the swift and decisive intervention by the government to help households and businesses with the cost of energy by capping annual expenditure at an average of £2500.
“The impact of higher increases jeopardised so many facets of the economy it was almost impossible to over-exaggerate the terrible consequences there might have been – bankruptcies, unemployment, increased inflation, a house price crash – all were very possible.
“Bills and inflation still look set to rise. Interest rates may well do so too. But the cliff-edge has, for now, been avoided. Businesses and homeowners now have certainty about their budgets and can plan accordingly.
“There will of course be a price to pay, perhaps with higher bills or taxes in the future. But today at least, homeowners, businesses, charities and everyone in the property sector will be breathing a huge sigh of relief.”
Under proposals outlined today, a typical household energy bill will be capped at £2,500 annually until 2024.
The huge support scheme could cost up to £150bn, but Ms Truss refused to put a figure on it, saying “extraordinary times call for extraordinary measures”.
Businesses will get support, with bills capped for six months, a shorter period of protection than many had hoped for.
The help will be for everyone in England, Scotland and Wales with equivalent help for Northern Ireland.
But there are concerns the measures are not targeted enough, with no additional support for the most vulnerable. As a result, millions are still expected to be in fuel poverty this winter.
The energy price cap – the highest amount suppliers are allowed to charge households for every unit of energy they use – had been due to rise to £3,549 in October.
To limit the amount customers’ bills go up by, the government will compensate energy firms for the difference between the wholesale price for gas and electricity they pay and the amount they can charge customers.
The final cost of the scheme will depend on the cost of energy on the international energy markets, which can be extremely volatile.
The money to cover the support will be borrowed by the government, adding to the UK’s already large debt pile.
