BARROW's MP has said he welcomes the announcement from new Prime Minister Liz Truss that energy bills for the average household will be frozen at no more than £2,500

The Prime Minister’s two-year plan will save the average household around £1,000 from October and protect billpayers from further expected rises over the coming months.

For businesses and other non-domestic users such as schools and hospitals, which have not been covered by the existing price cap, a six-month scheme will offer equivalent support.

After that, there will be ongoing support for the most vulnerable industries, with a review in three months’ time to decide where the help should be targeted.

Barrow and Furness MP Simon Fell said: "I welcome the measures that the Prime Minister has announced today. I’ve spent much of the last few weeks listening to people from across Furness to understand how the proposed energy rises would affect them, their families, and their businesses.

"These measures, coupled with the support already announced, help everyone, whilst ensuring that the most vulnerable households receive the targeted support which they need."

He added: "Moving forward, it’s important that the UK is less dependent on other nations for fuel for energy and have our own resilient supply. That is why I continue to make the case for nuclear, offshore wind, tidal, hydrogen, and other greener fuels that we can produce and use here."

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Cumbria Tourism said they "cautiously" welcome the announcement, but said "further detail is still needed to give tourism operators the certainty they require to plan for the challenging months ahead".

Gill Haigh, Managing Director of Cumbria Tourism, said: "We are pleased that the urgent calls for support that we and the industry have been making have been heard and it will be important now that clarity regarding the plan is provided as quickly as possible.

"We’ve seen examples of businesses throughout the county having to consider shutting doors due to staggering renewal prices. After more than two and a half years of hardship recovering from the pandemic, the last thing the industry needed was a staggering jump in electricity prices – given the disproportionately high usage when compared to other industries.

"Hospitality businesses are already feeling the squeeze and are reluctant to pass the prices directly onto their customers who are themselves already facing hardship. The news is a really positive step, but more clarity is still needed."

The plan outlined yesterday (September 8) will see the Government limit the price suppliers can charge customers for units of gas, replacing the existing price cap set by regulator Ofgem.

Using tens of billions of extra borrowing, the Government will provide energy suppliers with the difference between the new, lower price and what they would charge were this not in place.

The Prime Minister told MPs: “This is the moment to be bold. We are facing a global energy crisis and there are no cost-free options.”

Under the current domestic energy cap, households face average bills of £1,971 but this was set to rise to £3,549 in October – and forecasts have suggested it could hit as high as £7,700 by April 2023.

The £2,500 “energy price guarantee” will apply in England, Scotland and Wales from October 1, with the same level of support made available to Northern Ireland, which has a separate energy market.

The guarantee is based on the existing cap, plus the already promised £400 energy bills discount for all households, meaning costs will be similar to those faced today.