UK Says Energy Aid Will Cost Treasury Billions and Cut Inflation
- Liz Truss seeks to head off tightening squeeze on living costs
- Treasury will set out impact on bond sales later this month
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Liz Truss’s UK government announced a sweeping package of measures to contain spiraling energy bills, seeking to ease a historic squeeze on the cost of living that’s likely to define her premiership.
Truss’s plan would cap the average cost of energy for households at £2,500 a year from October, well below the £3,548 they would have paid without the intervention. Consumers also get a £400 subsidy that’s already been announced. The program will last for two years, and businesses will get what the government described as an equivalent intervention lasting an initial six months.