Truss caps domestic fuel bills to tackle UK cost-of-living crisis

by | Sep 8, 2022 | World

The new UK government also lifts a ban on fracking and allows more drilling licences for North Sea oil and gas.British Prime Minister Liz Truss has said domestic fuel bills will be frozen for two years, marking her first week in office with a costly plan to tackle the country’s cost-of-living crisis.
The government said on Thursday it would also review progress towards its legally enshrined target to achieve net-zero carbon emissions by 2050 to ensure the needs of consumers and businesses are taken into account while stressing it remained committed to the goal.
Households are facing an 80 percent hike in gas and electricity bills next month due to the rise in the cost of wholesale energy made worse by a squeeze on supplies after Russia’s full-scale invasion of Ukraine.
Businesses, whose bills are not capped, have warned they could go to the wall because of even bigger rises, at the same time as inflation is at 40-year highs of 10.1 percent and predicted to go higher.
The government expects the state-backed scheme to cost tens of billions of pounds, but Truss and Kwasi Kwarteng, UK’s new finance minister, insisted it would have “substantial benefits” to the economy.
It would curb inflation by 4 to 5 percentage points, they said in a statement.
They also announced an end to a ban on fracking – a controversial method to drill for fossil fuels – and more drilling licences for North Sea oil and gas.
‘A massive sigh of relief’
Truss said “decades of short-term thinking on energy” and failing to secure supplies had left the UK, which is heavily reliant on gas for its energy needs, vulnerable to price shocks.
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