Energy Crisis - Government announce £150b package for bills to be capped at £2,500 for typical household
The new UK Prime Minister, Liz Truss, has announced plans in the commons today to limit energy bill rises for all households for two years to help millions of people falling into hardship this winter.
A typical household energy bill is to be capped at £2,500 annually until 2024.
Businesses will receive support for six months.
The huge support scheme could cost up to £150bn, although the total cost will depend on future wholesale fuel prices.
The energy price cap - the maximum amount suppliers are allowed to charge households for every unit of energy - was been due to leap to £3,549 in October, a move which would have caused widespread fuel poverty.
Under the Liz Truss scheme, 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 government will suspend green levies - which add £150 to bills each year - which the £2,500 cap accounts for.
A previously announced £400 energy bills discount for all households will go ahead. Taken together, the government said this "will bring costs close to where the energy price cap stands today".
Most people’s bills are still double where they were before the Russian invasion of Ukraine, but would have soared if the price cap was lifted again next month.
Why do so many people depend on government aid?
The majority of working people have no savings and live month-to-month throughout their lives.
Retirement planning is woefully inadequate which means millions of pensioners are dependent on the state to make ends meet.
According to the DWP report in August 2019:
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