Liz Truss announces £2,500 energy price freeze in new emergency measures

Liz Truss has announced major new plans to tackle soaring energy bills all across the UK.

The new Prime Minister told MPs on Thursday that domestic bills will be frozen at £2,500 as part of "two year energy price guarantee" to alleviate households' financial struggles during the cost of living crisis.

During her announcement in the House of Commons, Ms Truss also stated that the government will wait until an emergency Budget is set out this month. It means that households will now pay no more than £2,500 a year on their bills for two years starting from October 1.

Read more: LIVE: Liz Truss announcement as new Prime Minister expected to freeze energy bills

Meanwhile, a similar scheme will be in place for businesses, schools, hospitals, other public organisations and charities. While it will "offer equivalent support", it will only last for six months.

The government also failed to announce any concrete plans to support "vulnerable" industries but confirmed that long-term support will be announced at a later date pending a review in three months which will reveal which sectors need the help the most.

Green levies on energy bills will also be removed from energy bills worth £150 to continue to fund projects to boost renewables. On top of this, ministers will continue with a £400 discount on energy bills.

With the new measures announced, the average household will pay close to the current £1,971 price cap. Inflation will also be affected with the Treasury estimating that the measures will knock it up to five per cent off.

Liz Truss told MPs: “We will deliver this by securing the wholesale price for energy while putting in place long-term measures to secure future supplies at more affordable rates.

She added: "This is