UK Prime Minister Liz Truss announced a new plan to cap the cost of energy for British households for two years as prices continue to rise and households struggle with a cost-of-living crisis.

“This government is moving immediately to introduce a new energy price guarantee that will give people certainly on energy bills,” Truss told the House of Commons on Thursday, September 8.

Truss said a “typical household” would not pay more than £2,500 ($2,800) for energy per year for the next two years, starting on October 1. That would be in addition to a £400 energy bill support scheme previously announced by Boris Johnson’s government.

The plan includes a suspension of “green levies” and has already been agreed with energy retailers, she said.

A fund will be set up for people living in park homes or on heat networks or using oil for heating, Truss added.

Truss was appointed formally as prime minister by Queen Elizabeth on September 6, after winning the Conservative Party leadership contest.

The new prime minister’s government had been under pressure to announce quickly a plan to help UK households deal with escalating energy costs ahead of the winter. Credit: parliamentlive.tv via Storyful

Video transcript

- Minister.

LIZ TRUSS: Mr. Speaker, I beg to move the motion. Earlier this week, I promised I would deal with the soaring energy prices faced by families and businesses across the UK. And today, I am delivering on that promise. This government is moving immediately to introduce a new energy price guarantee that will give people certainty on energy bills. It will curb inflation and boost growth.

This guarantee-- which includes a temporary suspension of green levies-- means that from the 1st of October, a typical household will pay no more than 2,500 pounds per year for each of the next two years while we get the energy market back on track.

- Hear, hear.

LIZ TRUSS: This will save a typical household 1,000 pounds a year. It comes in addition to the 400 pounds Energy Bill's Support Scheme. This guarantee supersedes the Ofgem price cap, and has been agreed with energy retailers. We will deliver this--

[LAUGHTER]

Mr. Speaker, I will make way in a few minutes when I have made some progress.

- Hear, hear.

LIZ TRUSS: Mr. Speaker, we will deliver this by securing the wholesale price for energy while putting in place long-term measures to secure future supplies of more affordable rates. We are supporting this country through this winter and next, and tackling the root causes of high prices so we are never in the same position again. For those using heating oil living in Park homes, or those on heat networks, we will set up a fund so that all concerned--

- Prime Minister, sorry about this. Can I just say I don't want a running commentary from here, and giving me the advice. I certainly don't need it. Prime Minister, I don't want to interrupt, but it's up to you to give way when you feel it's appropriate. But just to let you know that it is now being printed that there will be [INAUDIBLE], and I'm hoping that will bring in to the chamber for everybody's sake. Prime Minister.

LIZ TRUSS: Well, thank you. Thank you, Mr. Speaker. For those using heating oil, living in Park homes, or those on heat networks, we will set up a fund so that all UK consumers can benefit from equivalent support.

- Hear, hear.

LIZ TRUSS: I'll give way to the gentleman.

- I thank her for giving me national energy. She needs to meet with--