New Prime Minister Liz Truss is to set out plans to help households out against soaring energy bills by implementing a energy bills freeze, reports say.

As reported by the Press Association, Ms Truss is thought to be planning to freeze bills at around the £2,500 mark.

This is about £500 higher than current levels, but at the same time it will be £1,000 below October's energy price cap.

Currrently the price cap is set to increase by 80% in October - pushing the average household’s yearly bill up from £1,971 to £3,549.

Liz Truss on plans to tackle soaring energy bills as PM

Details have not yet been finalised, but the plan is expected to be funded through general taxation or increased borrowing rather than paid for in future energy bills.

A Government source confirmed a Times report that the energy freeze will be at around the £2,500 mark, although an insider in the Truss camp said “nothing is finalised yet”.

The plan is based on the current £1,971 energy price cap plus the £400 universal handout announced under Mr Johnson’s government.

Help is also expected for business customers struggling with soaring bills which are not covered by the existing energy price cap in England, Scotland and Wales.

Policies to tackle the energy price cap may help against the predicted cap rise to £5,600 in January, and potentially £7,700 in April 2023, according to energy consultancy firm Auxilione.

Ms Truss was officially appointed as Prime Minister this morning (Tuesday, September 6) after meeting with the Queen at Balmoral.