PM unveils energy support package for consumers and businesses

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The government has launched a raft of initiatives to reduce the impact of spiralling energy costs for people and businesses in a bid to provide certainty and curb inflation

Prime minister Liz Truss told the House of Commons that from October the average household would pay no more than £2,500 per year for their energy bills for the next two years, which she said would save a typical household £1,000 per year.

This support is given in addition to the £400 energy bill support unveiled by former chancellor of the exchequer Rishi Sunak earlier this year.

Truss said that businesses, charities and public-sector organisations would also see their energy costs capped at the same price per unit that households would pay, but only for the next six months.

The government will concurrently launch a three-month review into which sectors are the most vulnerable to rising energy costs, such as hospitality, and offer specialised support to those businesses following the six-month energy bill cap offered to all businesses.

Truss said these measures were intended to “offer certainty” to households and businesses across the UK “concerned about how they will get through winter”.

She added that these measures were expected to boost economic growth and “curb inflation by up to 5%”.

British Retail Consortium chief executive Helen Dickinson said: “We welcome today’s announcement, which will offer retailers some relief during the next few months, although we await details on what form the support for non-domestic users will take.

“Rising energy costs are among the many costs feeding into higher prices; retailers are supporting their customers by absorbing many of these costs and limiting price rises. This announcement will help retailers as they continue to do all they can to support their customers through this challenging period.”