The £400 universal handout given to households this autumn is expected to be factored in, so the energy price cap will effectively remain at around the current rate of £1,971. Conservative sources confirmed wholesale gas prices could be capped, meaning the new prime minister’s plan would also help thousands of small businesses on the brink of collapse. The plan, which could cost up to £90 billion, would be paid for with additional borrowing after Kwasi Kwarteng, expected to be the new chancellor, spoke of some “fiscal easing”. It suggests Truss has rejected a top proposal by the Treasury and energy companies to freeze bills and add the cost in future years to customers’ bills. Critics had warned that it could be difficult to justify when energy companies were making huge profits. What is Liz Truss’s vision for Britain? – video explanation The current energy bill price cap is £1,971 a year, rising to £3,549 from 1 October. But the cap is due to be revised in January, with some analysts predicting it could exceed £5,000 a year. Truss campaign sources say the new prime minister “understands” that people and small businesses are struggling and will need help to get through a tough winter. But they warned that the plans, which were initially expected to be announced on Thursday but could be pushed back to next week, were still being carried out. Truss is also expected to announce a plan to address long-term energy security and supply to make sure the UK is not in a similar position every winter, rather than applying sticking plasters every year as the energy crisis continues. Archie Bland and Nimo Omer take you to the top stories and what they mean, free every weekday morning Privacy Notice: Newsletters may contain information about charities, online advertising and content sponsored by external parties. For more information, see our Privacy Policy. We use Google reCaptcha to protect our website and Google’s Privacy Policy and Terms of Service apply. Labor has called for a freeze on energy prices, paid for by a windfall tax on oil and taxing companies. But Truss ruled out a windfall tax to cover the multibillion-pound cost. Another Tory source claimed Team Truss had been “turning houses” with the Treasury over the energy plan, but in the end they were close to agreement. They added: “She hadn’t made up her mind yet and different people were trying to sway her from their plan.”
