Liz Truss considering plans to freeze energy bills until next election

Ms Truss’s first policy announcement will be what campaign figures have called a twin package of measures to provide help to households with soaring energy bills, plus reform of energy supply.

While the Truss campaign continued to stay silent in public about the measures on Monday, details of options being considered are emerging.

The Telegraph understands that Ms Truss plans to institute an energy bill freeze that could last all the way to 2024 and is also leaning towards applying the freeze to all 28 million households rather than offering means tested support, according to multiple campaign and Treasury sources.

One government figure familiar with Truss campaign policy discussions said the intervention would be “huge” and that the campaign wanted a “simple” solution.

Kwasi Kwarteng, set to be appointed chancellor on Tuesday, hinted at a two-year intervention in the Financial Times, saying the package would help businesses and families “through this winter and the next”.

Freezing the price cap would mean annual energy bills for the average household would remain at £1,971 instead of jumping to £3,549 next month. The overall package could cost the Treasury up to £100 billion.

The money could be provided to energy companies as a loan, and industry bosses are understood to have suggested that this be repaid via a levy on household bills after the crisis has passed. However, this would mean that household bills would not fall as quickly as otherwise.

Truss campaign figures insisted final decisions are yet to be taken, with discussions continuing this week. Keeping prices fixed for both the winter of 2022-23 and 2023-24 would reflect the belief of her campaign that energy bills will remain unusually high into 2024.

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