Liz Truss planning £2,500 energy bills freeze

Details have not yet been finalised, but the plan is expected to be funded through general taxation or increased borrowing rather than paid for in future energy bills.

Ms Truss became the UK’s third female Prime Minister after meeting the Queen at her Scottish estate.

The handover of power from Boris Johnson took place at Balmoral rather than Buckingham Palace because of the 96 year-old monarch’s mobility problems, with Ms Truss becoming the Queen’s 15th prime minister.

Ms Truss, who won the Tory leadership on Monday, will travel to Westminster for a TV address from Downing Street later on Tuesday afternoon.

Ms Truss will face her first session of Prime Minister’s Questions in the Commons on Wednesday and could set out her energy package on Thursday.

A Government source confirmed a Times report that the energy freeze will be at around the £2,500 mark, although an insider in the Truss camp said “nothing is finalised yet”.

The plan is based on the current £1,971 energy price cap plus the £400 universal handout announced under Mr Johnson’s government.

Help is also expected for business customers struggling with soaring bills which are not covered by the existing energy price cap in England, Scotland and Wales.

Opposition politicians called for oil and gas firms to pay for the freeze in bills, rather than letting taxpayers pick up the tab.

Liberal Democrat leader Sir Ed Davey said:

“Liz Truss spent weeks during this summer leadership contest leaving families and pensioners worried and in limbo by refusing to set out her plans to tackle soaring energy bills.

“Now she seems set to make our children pick up the tab for this mess, while letting oil and gas firms making record profits off the hook.”