UK’s New Energy Price Promise: Families Get £2,500 a Year
Prime Minister Liz Truss has rolled out a fresh energy price guarantee that caps what an average household will pay at £2,500 each year, starting 1 October. That translates to roughly £1,000 in savings over a single year for most families.
What the Guarantee Covers
- Household maximum £2,500 per year on gas and electricity.
- Guarantee lasts two years (plus the earlier £400 pledge from the former Chancellor).
- Designed to tackle soaring energy costs and help curb inflation.
Businesses Get a Temporary Cushion
Large firms and public sector organisations will receive a six‑month support package for the winter period. The government hasn’t yet settled on a precise cap for trade, partly because the commercial market operates on a completely different set of rules.
Prime Minister’s Words
Truss told MPs that “it’s the moment to be bold”, pledging to deliver urgently on families’ energy worries. She nodded to the global energy crunch but emphasized that there will be a cost to this intervention—a reality all too familiar to the nation’s households.
Industry Voices
Alastair Douglas, CEO of TotallyMoney, welcomed the move and cautioned that the new cap, while welcome, won’t fully shield the most vulnerable amid the broader cost‑of‑living crisis. He recalls last winter’s cap of £1,277 to give context to the figure.
“A recent PwC partnership found that one in four UK residents would need to borrow for a shock £300 bill,” Douglas added. “Even with the guarantee, the winter months will still bring a financial squeeze.”
Looking Ahead
The government’s action signals the start of a trend, and the financial sector is encouraged to follow suit. TotallyMoney remains committed to equipping under‑served households with tools to navigate the new economic landscape.
