The Government’s energy price cap comes into force on Saturday

The Government’s energy price cap to shield households and businesses from the worst of the soaring oil and gas prices comes into effect on Saturday.

Under the energy price guarantee – which limits the unit price paid for electricity and gas – the annual bill for a typical household in England, Scotland and Wales will be held to around £2,500 for the next two years.

A similar scheme will operate in Northern Ireland.

The Government said without action, energy bills had been expected to hit £3,500 from October rising as high as £6,500 next year.

Households will also see the first instalment of the £400 energy bill support scheme in their October electricity bill. The discount will be automatically applied monthly in six instalments between October and March.

Businesses, charities and public sector organisations will also be protected over the next six months.

Liz Truss said: “Livelihoods and businesses were at stake. The Government’s energy support limits the price they pay for gas and electricity, shields them from massive bill increases, and is expected to curb inflation too.

“The cost of not acting would have been enormous.”

It comes as about one in five adults say they are looking for new work so they can maintain their standard of living as costs soar.

Nine out of 10 people (91%) polled by the Office for National Statistics (ONS) said costs had increased in the last year.

As a result, 19% of working adults reported they are looking for a job that pays more – that could include a promotion or moving to a different employer, the ONS said.

Moreover, 15% said they are working extra hours because costs are rising so they need more money. Around 4% said they have taken another job to help meet costs.