Starting Over: A New PM - Scofield Chan Whitgift School

The London sky is dim, but not too dark. There is hope. <i>(Image: Scofield Chan, Whitgift School)</i>
The London sky is dim, but not too dark. There is hope. (Image: Scofield Chan, Whitgift School)

It is a tough year for the British population. With a new prime minister, one ought to remain hopeful. Though the British will not be seeing the sun any time soon, they may see the light at the end of the tunnel if Truss’ policies are successful.

As Prime Minister of the United Kingdom, Liz Truss participated in the energy policy debate in Parliament.

Earlier, Truss had vowed to solve the inflating prices of domestic energy, which, if successful, may eliminate the choice between “Heating and Eating.”

She proposed limiting energy prices to £2500 until 2024 “while we get the energy market back on track.” She estimates that with her Energy Bills Support Scheme, a typical household would save up to £1400 per annum.

However, according to Office for National Statistics, total real income (adjusted for inflation rate) fell by 2.6%, for which the high inflation rate was accountable.

The Consumer Price Index with Housing records the percentage changes in prices of a typical basket of goods and services and residences, purchased by the typical household. Prices are converted into index values are multiplied by the proportion of income products take up. In 2022, the measured inflationary value was 8.8%.

By calculation, though Truss’ plans are useful, it may not solve the cost-of-living crisis – only mitigate it. It is likely true that the average household may be better off with the support, though to a limited magnitude.

If Truss can secure “the wholesale price for energy, while putting in place long-term measures to secure future supplies at more affordable rates,” she could make significant progress in improving the lives of the UK population.

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