'A qualified thumbs up': Martin Lewis reviews Liz Truss's £2,500 energy cap plan

Split image. Left image: Martin Lewis. Right image: A phone screen with an energy bill on it.
Martin Lewis said the new support package will make 'a very large difference to millions and tens of millions of homes'. Credit: ITV News/PA

Liz Truss' financial support package to help tackle energy bills by capping the typical household bill at £2,600 has been "very much" welcomed by Martin Lewis.

The money saving expert said while the proposals are not "perfect" they will make "a very large difference to millions and tens of millions of homes".

The consumer expert hedged his praise, saying the package gets "a qualified thumbs up" as he warned this winter's bills will still be higher than Britain's most vulnerable households can afford.

On Thursday, Ms Truss said the government will introduce an "energy price guarantee" in England, Wales and Scotland coming into effect from October 1 - the same day the energy price cap was set to grow by 80%.

Residents in Northern Ireland will also receive the same level of support, despite operating under a different energy market.

Her "bold" new plans mean that no British household will pay more than £2,500 per year for their energy bills.

Mr Lewis said he "will leave the debate" to others on how the scheme is financed. Ms Truss announced funds will be raised through tens of billions pounds worth of borrowing.

He said: "There were always going to be costs whatever system you used. The real question is who pays them?"

Martin Lewis gives his review of Liz Truss's energy package to ITV News

Pressed on what advice he would give families who are still worried about how they can afford already eyewatering bills Mr Lewis provided several tips.

"The first thing to do is speak to your supplier. An open line of communication with your supplier is important," he said.

"Many of them have vulnerable customer help and if you are vulnerable then be open and up front about it. It isn't a negative. Don't worry about it. There are rules in place so they have to give you help and support.

"Speak to a charity like Citizens Advice or National Energy Action who can provide further support.

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"There may be debt help grants, specifically energy help debt grants. There may be other grants.

"You may be eligible for more benefits than you think you are. Of course, and this is going to apply to everyone this winter, cutting your usage is important too."

Ms Truss told the House of Commons her package "supersedes the Ofgem price cap and has been agreed with energy retailers.”

“This is the moment to be bold. We are facing a global energy crisis and there are no cost-free options," she added.

But Labour leader Sir Keir Starmer said that the plan "does not come cheap” and warned "the bill will be picked up by the working people".