London Daily

Focus on the big picture.
Thursday, Sep 18, 2025

Energy bills capped at £2,500 a year from October, Liz Truss announces

Energy bills capped at £2,500 a year from October, Liz Truss announces

In the first major policy announcement of her premiership, Liz Truss says 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.

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 same level of support will be provided to Northern Ireland, where a separate energy market operates.

"This is the moment to be bold. We are facing a global energy crisis and there are no cost-free options," the PM told the Commons.

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.


Warning that plan won't 'come cheap'


The move, expected to cost tens of billions, will be funded through more government borrowing. Chancellor Kwasi Kwarteng is due to lay out the expected costs in his fiscal statement later this month.

Labour argues a freeze on bills should be paid for through a windfall tax on the profits of oil and gas producers instead, something the PM has dismissed out of hand.

Party leader Sir Keir Starmer said the plan will not "come cheap" and the PM's discounting of a windfall tax shows she is "driven by dogma" and "it's working people who will pay for that".

The PM says the price guarantee supersedes the existing price cap, with the government limiting the price suppliers can charge customers for units of energy.


Energy suppliers will be given the difference between the new lower price and what they would charge if the guarantee was not in place.

The price cap, which currently means average household bills should be no more than £1,971, was due to rise in October to more than £3,500 and further still when the next level was due to be set in January.

Forecasts have said it could have gone as high as £7,700 by next April.

Fracking ban lifted as part of moves to increase energy supply


The new price guarantee is based on the existing price cap, combined with the £400 bills discount for all households, meaning costs will be similar to those facing the public today.

Ms Truss said the cost of the extra support would be offset by increasing energy supply and launching an energy taskforce, as she pledged to make the UK a net exporter of energy by 2040.

"We are also accelerating all sources of domestic energy, including North Sea oil and gas production," the PM said.

"We will be launching a new licensing round which we expect to lead to over 100 new licences being awarded."

As part of these longer term plans to address the energy crisis, the PM also announced she is ending the moratorium on fracking.

It means shale gas extraction is set to be given the green light in places where it is backed by residents.

The commitment to net zero remains, although there will be a review to ensure the policy is delivered by 2050 "in a way that is pro-business and pro-growth".

"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," the PM said.

"I will end the UK's short-termist approach to energy security and supply once and for all."

Newsletter

Related Articles

0:00
0:00
Close
Macron and his wife to provide 'scientific photographic evidence' that she is a real woman
US Tech Giants Pledge Billions to UK AI Infrastructure Following Starmer's Call
Saudi Arabia cracks down on music ‘lounges’ after conservative backlash
DeepMind and OpenAI Achieve Gold at ‘Coding Olympics’ in AI Milestone
SEC Allows Public Companies to Block Investors from Class-Action Lawsuits
Saudi Arabia Signs ‘Strategic Mutual Defence’ Pact with Pakistan, Marking First Arab State to Gain Indirect Access to Nuclear Strike Capabilities in the Region
Federal Reserve Cuts Rates by Quarter Point and Signals More to Come
Effective and Impressive Generation Z Protest: Images from the Riots in Nepal
European manufacturers against ban on polluting cars: "The industry may collapse"
Sam Altman sells the 'Wedding Estate' in Hawaii for 49 million dollars
Trump: Cancel quarterly company reports and settle for reporting once every six months
Turkish car manufacturer Togg Enters German Market with 5-Star Electric Sedan and SUV to Challenge European EV Brands
US Launches New Pilot Program to Accelerate eVTOL Air Taxi Deployment
Christian Brueckner Released from German Prison after Serving Unrelated Sentence
World’s Longest Direct Flight China Eastern to Launch 29-Hour Shanghai–Buenos Aires Direct Flight via Auckland in December
New OpenAI Study Finds Majority of ChatGPT Use Is Personal, Not Professional
Hong Kong Industry Group Calls for HK$20 Billion Support Fund to Ease Property Market Stress
Joe Biden’s Post-Presidency Speaking Fees Face Weak Demand amid Corporate Reluctance
Charlie Kirk's murder will break the left's hateful cancel tactics
Kash Patel erupts at ‘buffoon’ Sen. Adam Schiff over Russiagate: ‘You are the biggest fraud’
Homeland Security says Emmy speech ‘fanning the flames of hatred’ after Einbinder’s ‘F— ICE’ remark
Charlie Kirk’s Alleged Assassin Tyler Robinson Faces Death Penalty as Charges Formally Announced
Actor, director, environmentalist Robert Redford dies at 89
The conservative right spreads westward: a huge achievement for 'Alternative for Germany' in local elections
JD Vance Says There Is “No Unity” with Those Who Celebrate Charlie Kirk’s Killing, and he is right!
Trump sues the 'New York Times' for an astronomical sum of 15 billion dollars
Florida Hospital Welcomes Its Largest-Ever Baby: Annan, Nearly Fourteen Pounds at Birth
U.S. and Britain Poised to Finalize Over $10 Billion in High-Tech, Nuclear and Defense Deals During Trump State Visit
China Finds Nvidia Violated Antitrust Laws in Mellanox Deal, Deepens Trade Tensions with US
US Air Force Begins Modifications on Qatar-Donated Jet Amid Plans to Use It as Air Force One
Pope Leo Warns of Societal Crisis Over Mega-CEO Pay, Citing Tesla’s Proposed Trillion-Dollar Package
Poland Green-Lights NATO Deployment in Response to Major Russian Drone Incursion
Elon Musk Retakes Lead as World’s Richest After Brief Ellison Surge
U.S. and China Agree on Framework to Shift TikTok to American Ownership
London Daily Podcast: London Massive Pro Democracy Rally, Musk Support, UK Economic Data and Premier League Results Mark Eventful Weekend
This Week in AI: Meta’s Superintelligence Push, xAI’s Ten Billion-Dollar Raise, Genesis AI’s Robotics Ambitions, Microsoft Restructuring, Amazon’s Million-Robot Milestone, and Google’s AlphaGenome Update
Le Pen Tightens the Pressure on Macron as France Edges Toward Political Breakdown
Musk calls for new UK government at huge pro-democracy rally in London, but Britons have been brainwashed to obey instead of fighting for their human rights
Elon Musk responds to post calling for the murder of Erika Kirk, widow of Charlie Kirk: 'Either we fight back or they will kill us'
Czech Republic signs €1.34 billion contract for Leopard 2A8 main battle tanks with delivery from 2028
USA: Office Depot Employees Refused to Print Poster in Memory of Charlie Kirk – and Were Fired
Proposed U.S. Bill Would Allow Civil Suits Against Judges Who Release Repeat Violent Offenders
Penske Media Sues Google Over “AI Overviews,” Claiming It Uses Journalism Without Consent and Destroys Traffic
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
French Debt Downgrade Piles Pressure on Macron’s New Prime Minister
US and UK Near Tech, Nuclear and Whisky Deals Ahead of Trump Trip
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
Anesthesiologist Left Operation Mid-Surgery to Have Sex with Nurse
×