BREAKING NEWS: Energy bills capped to protect from soaring prices
A typical household will pay no more than £2,500 annually for its gas and electricity bills from the start of October, Prime Minister Liz Truss has announced.
In the first major policy announcement of her premiership, Ms Truss said the new price guarantee will last for two years and save the average household in England, Wales and Scotland £1,000 a year on future bills.
The policy, which Downing Street believes will curb inflation by up to five percentage points and will be enacted through emergency legislation, builds on the £400 payment to households set out by former chancellor Rishi Sunak earlier this year.
A six-month scheme for businesses, schools and hospitals will provide equivalent support over the winter.
Further targeted support for specific industries like hospitality is set to follow after that, with a review in three months to decide which sectors should benefit.
There is currently no cap on energy costs for businesses and a specific figure on support has not been given due to differences in how the wholesale energy market operates compared to the retail market.
The price guarantee will not affect those on fixed contracts for their energy, but ministers are confident discounts will be offered to those customers in due course after talks with suppliers.