Energy bills to be capped at £2,500 for typical household

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Liz Truss is the new Prime Minister and she wants to limit energy bill rises.

She said that the household energy bill would be capped at £2,500 a year.

She said it will save people a lot of money.

The energy price cap was going to go up in October.

Without help with soaring energy bills, lives would have been at risk this winter, according to experts and charities.

There will be a six-month scheme for businesses.

Ministers plan to support vulnerable industries after that.

The government will fund the plan by boosting economic growth, despite rejecting calls for a bigger windfall tax on energy company profits.

She said the government would offer more licences for oil and gas production in the North Sea as part of the plan.

The conflict in Ukraine has reduced supplies of Russian gas and caused gas prices to go up.