And the price cap will last for 2 years.

Prime Minister Liz Truss has confirmed that energy bills will be frozen for 2 YEARS.

This means energy bills, which had been set to rise to more than £3,500 in January, will be capped at £2,500 a year.

The freeze, which will come in on 1 October, is a huge relief for families who had been faced with what experts called a 'humanitarian crisis'.

What has the Prime Minister announced today?

In one of her first speeches as Prime Minister, Ms Truss announced she is capping the wholesale price of gas. This means bills won’t reach the terrifying levels that had been predicted.

Called the ‘energy price guarantee’, the price cap applies to households on variable rate energy deals.

The government says this means the average UK home won’t pay more than £2,500 a year for energy.

Ms Truss said:

‘We are supporting this country through this winter and next.’

Other support includes the £400 energy bill discount which was announced earlier this year.

This, along with the price freeze, will bring the average energy bill down to £2,100 for the year.

What if I’m on a fixed rate?

The price cap doesn’t apply if you’re on a fixed rate. However, you CAN move tariffs, says consumer champion Martin Lewis. On his MoneySavingExpert website , Martin wrote:

‘Those on fixes, can either stay on them, or can leave and switch to the new state subsidised tariffs with no exit penalties.’

A similiar scheme has also been announced for schools and businesses, although this will last for just six months.

What other support is available?

If you're struggling with the cost of living crisis, there is help available.

Head to our Cost of Living hub for expert advice on dealing with rising costs, and details of the benefits you may be able to claim.

Read more about financial support

Energy benefits to apply for

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