The Government is to cap average energy household bills at around £2,500 a year for the next two years, to protect people from soaring prices.
The plans – unveiled by new Prime Minister Liz Truss in early September – involve replacing the current price cap with a new ‘energy price guarantee’, which limits the amount suppliers can charge for each unit of energy. There will also be some short-term support for businesses.
Cllr Andrew Western, Chair of the LGA’s Resources Board, said: “This plan will go some way to alleviating the pressures on households and businesses caused by rising costs of energy and other essentials.
“Councils are taking practical steps to support those in their communities this winter, to address immediate hardship and improve people’s financial resilience and wellbeing, including through their use of the Household Support Fund.
“Ensuring financial support is targeted towards those most in need will continue to be crucial over the next few months, including for those on the lowest incomes.
“Longer-term, we need to ensure everyone can afford to heat their homes and prevent the risk of people developing health problems due to cold and damp conditions.
“The mainstream welfare system should ensure people have sufficient means to meet true living costs and councils and local partners need adequate resources to provide targeted and effective crisis support, alongside services that increase opportunity and lift people out of poverty for good.
“Accelerating the transition to renewable energy, retrofitting homes and buildings, and promoting comprehensive energy advice will all be essential to sustainably keeping energy costs down. Councils are uniquely able to help lead this local effort and are ready to work with government to deliver.”
