As the new prime minister, Liz Truss has inherited the responsibility of tackling the soaring cost of living crisis across the country.
Rising costs in energy and goods means that millions of households will struggle to afford their energy bills this winter, even with the support package currently in place which will see £400 knocked off energy bills from October.
Households all across the UK will see energy bills increase by 80 per cent next month, however, following Ofgem's announcement that the energy price cap will soar to £3,549 from October. The Bank of England has also predicted that inflation will reach a 42-year high of 13.3 per cent in October.
However, Ms Truss announced on Sunday that she has some plans in place to help people with their bills - and would announce actual details behind her plans within a week.
While she is yet to reveal exactly what these proposals are, it is believed that she may introduce a price freeze for some energy bills, something which was initially suggested by the Labour party. Both the Times and Daily Telegraph have reported on Monday that Truss' team are currently exploring this avenue but it may look a lot more different than Labour's proposal.
Read more: 'Everyone is going to struggle apart from the rich' - concerns over how people will pay energy bills
In an interview with the BBC’s Sunday with Laura Kuenssberg programme, she said: “I will act if I’m elected as prime minister. I will act immediately on bills and on energy supply because I think those two things go hand in hand.
“We need to deal with the immediate problem, we need to help people. We need to help businesses. But we also need to sort out the supply issues.”
Repeatedly pressed on what form that action would take, Ms Truss said: “Before you have been elected as prime minister, you don’t have all the wherewithal to get the things done. This is why it will take a week to sort out the precise plans and make sure we are able to announce them. That is why I cannot go into details at this stage. It would be wrong.
“I understand people are worried and I want to reassure people that I am absolutely determined to sort out this issue as well within a month, present a full plan for how we are going to reduce taxes, how we’re going to get the British economy going, and how we are going to find our way out of these very difficult times.”
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Ms Truss had previously said she would take 'immediate action' on energy bills, though.
“If elected, I plan within the first week of my new administration to set out our immediate action on energy bills and energy supply," she wrote in yesterday's Sunday Telegraph. "A fiscal event would follow later this month from my chancellor, with a broader package of action on the economy."
She added: “I understand how challenging the cost of living crisis is for everyone. These are tough times and the months ahead will be hard."
Ms Truss’ proposals, which include reversing April’s rise in national insurance and next year’s corporation tax increase from 19% to 25%, have prompted accusations they could worsen the already grim economic situation. Some senior Tory MPs have warned that such plans could risk increasing inflation and interest rates.
Former minister David Davis warned: "The worst outcome is, as it were, to give low taxes a bad name."
It was put to Ms Truss on BBC’s Sunday With Laura Kuenssberg programme that reversing the national insurance rise would see the poorest stand to gain about £7 while the wealthiest people could gain nearly £2,000.
Asked if that was fair, Ms Truss said: “The people at the top of the income distribution pay more tax. So inevitably when you cut taxes you tend to benefit people who are more likely to pay tax. Of course, there are some people who don’t pay tax at all.
“But to look at everything through the lens of redistribution I believe is wrong because what I am about is about growing the economy. And growing the economy benefits everybody.”
Throughout her campaign, Truss has also pledged to increase defence spending and boost energy supplies but is yet to divulge any full details on how this will be achieved.
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