London Daily

Focus on the big picture.
Wednesday, Oct 22, 2025

Energy price guarantee: How bill freeze announced by Liz Truss will affect you

Energy price guarantee: How bill freeze announced by Liz Truss will affect you

An unprecedented intervention in the energy market will shield households, businesses and public sector organisations from the worst of the surge in wholesale gas prices.

The Truss government's "energy price guarantee" aims to keep the bill pain facing the public at less than half the amount predicted for the winter ahead, with firms also getting help to protect the economy - but not for as long.

Public sector organisations such as schools are included too.

While the plan shelters us all from the eye-watering sums predicted for bills ahead, there will be a price to pay eventually as the taxpayer is initially being placed on the hook for the support which could exceed the COVID-era bailout in scale.

Here, Sky News explains how you will be helped in the months ahead.

Households


Last month it was announced that the energy price cap would rise to an average annual £3,549 in October from the current £1,971.

That will now not happen.

Ms Truss says the cap will be superseded by the new price guarantee - a sum that will not exceed £2,500 from October for two years.

Helping bring that number back to the level of the current cap is the previously announced £400 discount for each household and a temporary removal of green levies, worth £150 a year, from bills.

The energy price guarantee covers the vast majority of households - around 24 million who pay for their gas and electricity by direct debit.

What this announcement does not mean is that you will not pay more for your gas and electricity. It is an average sum based on unit prices so the more you use, the more you will pay.

What the Treasury is doing is effectively covering the difference between (soaring) wholesale prices that will exceed the household bill 'guarantee' level of £2,500.

I am not currently covered by the price cap. Do I benefit?


A fraction of households are on time-limited fixed price deals.

There are 4.5 million on pre-payment meters who currently pay around 5% more than those under the price cap.

It is understood that the same comparable level of discount will apply across all current variable tariffs in the domestic market but answers are being sought from the government to clarify what that will mean for fixed rate customers.

As things stand, some may have to pay a penalty to exit their deal, assuming it is financially beneficial to do so.

Ms Truss's statement in the Commons did reveal that those who do not directly pay for their energy, such as people living in park homes, would be helped via a fund.

Properties on heating oil, the PM said, would also benefit from the new fund. More details are promised by next week at the latest.

Businesses


Firms have had no shield from rising energy prices unless they had or have a fixed deal.

The toll has led to typical five-fold increases in energy costs - worse for energy intensive companies.

Some of those additional costs have contributed markedly to inflation as they have been passed down the supply chain to consumers in the goods and services we use. Think food, attractions and transport.

What the government said on Thursday was business would benefit with energy assistance for six months, in line with the level of support for consumers.

A series of reviews, starting in December, will then determine which sectors will need targeted aid beyond April.

Ms Truss suggested hospitality would be among the sectors likely to qualify.

Public sector bodies


The same help being offered to businesses will apply to the likes of charities and schools.

Newsletter

Related Articles

0:00
0:00
Close
‘Frightening’ First Night in Prison for Sarkozy: Inmates Riot and Shout ‘Little Nicolas’
White House Announces No Imminent Summit Between Trump and Putin
US and Qatar Warn EU of Trade and Energy Risks from Tough Climate Regulation
Apple Challenges EU Digital Markets Act Crackdown in Landmark Court Battle
Nicolas Sarkozy begins five-year prison term at La Santé in Paris
Japan stocks surge to record as Sanae Takaichi becomes Prime Minister
This Is How the 'Heist of the Century' Was Carried Out at the Louvre in Seven Minutes: France Humiliated as Crown with 2,000 Diamonds Vanishes
China Warns UK of ‘Consequences’ After Delay to London Embassy Approval
France’s Wealthy Shift Billions to Luxembourg and Switzerland Amid Tax and Political Turmoil
"Sniper Position": Observation Post Targeting 'Air Force One' Found Before Trump’s Arrival in Florida
Shouting Match at the White House: 'Trump Cursed, Threw Maps, and Told Zelensky – "Putin Will Destroy You"'
Windows’ Own ‘Siri’ Has Arrived: You Can Now Talk to Your Computer
Thailand and Singapore Investigate Cambodian-Based Prince Group as U.S. and U.K. Sanctions Unfold
‘No Kings’ Protests Inflate Numbers — But History Shows Nations Collapse Without Strong Executive Power
Chinese Tech Giants Halt Stablecoin Launches After Beijing’s Regulatory Intervention
Manhattan Jury Holds BNP Paribas Liable for Enabling Sudanese Government Abuses
Trump Orders Immediate Release of Former Congressman George Santos After Commuting Prison Sentence
S&P Downgrades France’s Credit Rating, Citing Soaring Debt and Political Instability
Ofcom Rules BBC’s Gaza Documentary ‘Materially Misleading’ Over Narrator’s Hamas Ties
Diane Keaton’s Cause of Death Revealed as Pneumonia, Family Confirms
Former Lostprophets Frontman Ian Watkins Stabbed to Death in British Prison
"The Tsunami Is Coming, and It’s Massive": The World’s Richest Man Unveils a New AI Vision
Outsider, Heroine, Trailblazer: Diane Keaton Was Always a Little Strange — and Forever One of a Kind
Dramatic Development in the Death of 'Mango' Founder: Billionaire's Son Suspected of Murder
Two Years of Darkness: The Harrowing Testimonies of Israeli Hostages Emerging From Gaza Captivity
EU Moves to Use Frozen Russian Assets to Buy U.S. Weapons for Ukraine
Europe Emerges as the Biggest Casualty in U.S.-China Rare Earth Rivalry
HSBC Confronts Strategic Crossroads as NAB Seeks Only Retail Arm in Australia Exit
U.S. Chamber Sues Trump Over $100,000 H-1B Visa Fee
Shenzhen Expo Spotlights China’s Quantum Step in Semiconductor Self-Reliance
China Accelerates to the Forefront in Global Nuclear Fusion Race
Yachts, Private Jets, and a Picasso Painting: Exposed as 'One of the Largest Frauds in History'
Australia’s Wedgetail Spies Aid NATO Response as Russian MiGs Breach Estonian Airspace
McGowan Urges Chalmers to Cut Spending Over Tax Hike to Close $20 Billion Budget Gap
Victoria Orders Review of Transgender Prison Placement Amid Safety Concerns for Female Inmates
U.S. Treasury Mobilises New $20 Billion Debt Facility to Stabilise Argentina
French Business Leaders Decry Budget as Macron’s Pro-Enterprise Promise Undermined
Trump Claims Modi Pledged India Would End Russian Oil Imports Amid U.S. Tariff Pressure
Surging AI Startup Valuations Fuel Bubble Concerns Among Top Investors
Australian Punter Archie Wilson Tears Up During Nebraska Press Conference, Sparking Conversation on Male Vulnerability
Australia Confirms U.S. Access to Upgraded Submarine Shipyard Under AUKUS Deal
“Firepower” Promised for Ukraine as NATO Ministers Meet — But U.S. Tomahawks Remain Undecided
Brands Confront New Dilemma as Extremists Adopt Fashion Labels
The Sydney Sweeney and Jeans Storm: “The Outcome Surpassed Our Wildest Dreams”
Erika Kirk Delivers Moving Tribute at White House as Trump Awards Charlie Presidential Medal of Freedom
British Food Influencer ‘Big John’ Detained in Australia After Visa Dispute
ScamBodia: The Chinese Fraud Empire Shielded by Cambodia’s Ruling Elite
French PM Suspends Macron’s Pension Reform Until After 2027 in Bid to Stabilize Government
Orange, Bouygues and Free Make €17 Billion Bid for Drahi’s Altice France Telecom Assets
Dutch Government Seizes Chipmaker After U.S. Presses for Removal of Chinese CEO
×