It would help millions of people
The UK's new Prime Minister, Liz Truss, is reportedly considering the freezing of energy bills for 18 months in a move which could cost around £100 billion. Ms Truss' request to form a government has been accepted by the Queen and she is now travelling from Balmoral in Scotland back to Downing Street, where she will address the nation in her first official speech as Prime Minister.
The BBC says it understands the Government is planning the scheme where energy companies would take out government guaranteed loans to bridge the gap between wholesale prices in the market and the fixed prices they are charging customers. It's ahead of the energy price cap rising to £3,549, the Manchester Evening News reports.
The Institute for Public Policy Research think tank said keeping the price cap at its current level would cut inflation by 3.9 percentage points. Inflation is currently 10.1 per cent, with energy bills a big part of this. The IPPR said: "Rising inflation is already causing immediate damage to households across the UK - half of the UK population have cut back on food."
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