Liz Truss’ energy price cap package does not ‘tackle root of problem’

Queen Elizabeth II: Liz Truss pays tribute to the monarch

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Liz Truss unveiled her new plan to help penny-pinching Brits deal with the ongoing energy price crisis yesterday. The 56th Prime Minister’s scheme, known as ‘Help for Households’, will introduce a £2,500 price cap for a typical UK household until 2024.

She claimed it will help save the average household £1,000 a year.

It will also introduce a new six-month programme which will limit energy prices for businesses and public sector organisations.

Ms Truss told MPs: “I will end the UK’s short-termist approach to energy security and supply once and for all.

“That is what I promised on the steps of Downing Street.

“Today we are acting decisively on that pledge.

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“This will help us build a stronger, more resilient and more secure United Kingdom.”

Chancellor Kwasi Kwarteng confirmed earlier this week that the scheme will be funded in the short-term through higher borrowing.

However, Labour is urging Number 10 to consider extending a windfall tax on energy companies.

Ex-Leader of the Opposition and Shadow Climate Change Secretary Ed Miliband said: “[Ms Truss] has been clear that she is against a windfall tax.

“We know the effects of this, it means all of the costs are loaded onto the British people.”

An expert has also suggested whilst the scheme will help vulnerable households, it falls short in getting to the root of the problem.

Will Hodson, consumer champion from How To Save It, told “Whilst this package supports the most vulnerable homes, it is only a short-term fix and does not get to the root of the problem.

“Britain has the oldest housing stock in Europe, which means too much heat lost to poor insulation.

“If the Government does not help British homes increase their energy efficiency now, bill support may be necessary for many years to come.”

Mr Hodson also suggested Ms Truss needed to stick to promises made by ex-Prime Minister Boris Johnson during the 2019 general election campaign.

He added: “Liz Truss has already promised to follow through on the promises of the Conservatives 2019 manifesto, which includes over £9billion worth of investment in energy efficiency.

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“Now she is Prime Minister, she must keep her word.

“We need a National Insulation Scheme to bring down bills permanently.

“Every year this investment is postponed puts extra billions on our bills.”

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