Liz Truss' energy plan to cost working families 'for years to come' says St Helens MP

In Ms Truss' first major policy announcement of her premiership, she announced the cap as energy bills were set to spiral further next month.

The price guarantee will save the average household around £1,000 a year, the Prime Minister said, and will be paid for by government borrowing and increasing domestic energy supply.

Liz Truss announced her first major policy in the House of Commons (Image: PA)

Ms Truss told the House of Commons that the move was "bold" as the energy price cap - known as the average bill for households based on energy units - was due to rise to more than £3,500 in October.

However, the announcement has drawn criticism for not going far enough as Labour had previously called for the price cap to be frozen at its current rate of £1,971.

Announcing a £29bn plan last month, the opposition party said this would be paid for by placing an extra tax on oil and gas giants rather than borrowing.

St Helens South & Whiston MP Marie Rimmer said that increasing the energy cap for ordinary households while not placing additional taxes on oil and gas giants is "not acceptable".

Marie Rimmer MP (Image: Marie Rimmer MP)

She said: "The reality is that the measures announced by the new Prime Minister are going to cost working families for years to come - yet at the same time oil and gas giants are making billions in profit.

"The increase of the cap beyond its current level will still cause huge difficulties to millions of households.

"Asking families to find hundreds more during the biggest cost-of-living crisis for a generation is not acceptable."

Another line of criticism comes as there is currently no cap on energy costs for businesses, who may struggle to survive during the coming winter months.

There are concerns for residents and businesses in St Helens (Image: St Helens Council)

Marie Rimmer MP added: "Businesses need to be supported, particularly energy intensive ones such as a glass industry that we know well in St Helens.

"We are world leaders in glass so the Government needs to make sure they support the industry during this crisis.

"The Government cannot expect working families to pay for this while their friends in the oil and gas sector make record profits."

As part of long-term plans to address the energy crisis, the Prime Minister spoke about accelerating sources of domestic energy and ending the moratorium on fracking.