Energy bills have been frozen at around £2,500 a year for most households under plans announced by Liz Truss today.
The new Prime Minister has said households on the Ofgem energy price cap will have their bills frozen.
This means a planned October price cap rise which would see average yearly energy bills hit £3,549 has been avoided.
The Ofgem price cap applies to people on variable rate energy deals - around 80% of the country, or 24million people.
The Prime Minister said: "We are supporting this country through this winter and next."
How much will my energy bills be under the new scheme?
The Government has said the average UK home will not pay more than £2,500 a year for energy from October 1, 2022.
The scheme is called the 'energy price guarantee'.
The £400 energy bill discount previously announced by the Government will bring down bills further - to around £2,100 on average.
Next year there will be no £400 discount, so bills will be £2,500 for the typical home.
Some homes will pay more than this, and some less, depending on how much energy they use.
How long will bills be frozen?
Energy bills will be capped for two years - though plans are still being drawn up to help some customers, for example those on fixed-rate deals.
What if I'm on a fixed rate tariff?
The Government are still working out what happens to people on fixed rate energy deals.
The Ofgem price cap only applies to people on variable rate energy deals - around 80% of the country, or 24million people.
But many energy users have recently locked in to fixed rate deals and may not benefit from any price cap freeze.
This price cap was due to rise to £3,549 in October.
Because of that, up to 15% of households have taken out fixed rate deals higher than the current price cap, thinking it would save them money in the long run.
The Government has yet to formally address if those on fixed deals will be allowed to leave without paying a penalty, but MoneySavingExpert founder Martin Lewis today claimed this would be the case.
He said: "Those on fixes can either stay on them or can leave and switch to the new state-subsidised tariffs with no exit penalties."
If you fixed within the last 14 days, you can cancel without charge.
Lewis added: "I'm hearing fixed tariffs will have the same unit rate reduction as variable tariffs (ie roughly 30% off). So it looks like, unless you fixed at over the new Oct price cap level, your fix will be cheaper than moving to variable."
He added that he was checking the details of this.
Writing on MoneySavingExpert later, Lewis added: "Earlier, the information I was told by the Government was that "all can get out of a fixed tariff without exit penalties". This may have changed, so that it is left up to firms.
"I will confirm when I know, but be careful acting on any of this before it is cast iron."
What about if I am on a pre-payment meter?
You will have your bills capped, but will still pay more than someone paying by direct debit.
Currently, people who pay by direct debit pay less for their energy.
That is because it costs less for energy firms to bill them.
What the Government is doing is changing the fixed unit price for all billpayers, regardless of how they pay.
The unit price is how much you pay per unit of gas or electricity you use.
It means that if you are on a pre-payment meter you will still pay more than someone paying by direct debit.
I use heating oil or a heat network - what help do I get?
A Government spokesperson said most homes using heating oil still have mains electricity, so will still see a freeze on that part of their bills.
The spokesperson said the Government is still trying to bring down high heating oil costs.
The same applies to people on heat networks - normally flats that share one boiler.
Liz Truss said: "We will set up a fund so that all UK consumers can benefit from equivalent support."
I live in a park home - what happens to my bills?
Many people living in caravan parks pay a fee to their landlord for the energy they use.
That means they are not directly helped by the scheme announced today.
A Government spokesperson said the Conservatives are "still looking" at ways to get these people more energy bill help.
