Liz Truss quits as Prime Minister - what does it mean for your money and the cost of living?

Liz Truss has quit as PM after 44 days in office. We explain what it could mean for your money

Liz Truss resigns speaking outside 10 Downing Street
(Image credit: Dan Kitwood / Getty images)

Liz Truss is quitting as the leader of the conservative party, and prime minister of the UK after just 44 days in office - in the midst of economic turmoil and a growing cost of living crisis.

Liz Truss’s short term as prime minister is coming to an end after a failed mini-budget which resulted in economic turmoil and a dramatic scaling back in energy bill support and abandoned tax cuts.

Costs are rising much faster than wages, with inflation now at 10%. The cost of the average two year fixed term mortgage has rocketed since the mini-budget, breaching 6% for the first time in 14 years - adding about £170 a month to repayments for households borrowing £200,000 on a 30-year mortgage.

The new leader of the conservative party - and UK prime minister - is expected to be announced next Friday (28 October). With growing financial pressures at the top of their in-tray.

What Liz Truss quitting means for cost of living support

Chancellor Jeremy Hunt has confirmed he will not stand to be the next Conservative leader and UK prime minister, leaving questions over what will happen to the planned fiscal statement on 31 October

But - there are three measures we expect to continue regardless.

  • £400 energy bill discount households have already started receiving a discount on energy bills this winter.  Around £66 - £67 off monthly bills for six month from October 2022 until March 2023
  • Energy Price Guarantee limiting the unit price of the energy you use from October 2022 until April 2023. 
  • National Insurance cut has passed through parliament and reduces National Insurance by 1.25 percentage points from 6 November after the previous Conservative government had increased it to 13.25% for annual salaries between £12,570 - £50,270.

We will update this article when we know more.

How did the financial markets react to Liz Truss quitting? 

There was a muted response from the markets after Liz Truss announced she was resigning as prime minister.

The pound initially rose immediately after the announcement before dropping back down to around $1.12.

Adam French
Editor, The Money Edit

Adam is the Editor at The Money Edit.
He has been working to save you money as a personal finance and consumer journalist, editor and commentator for several years. His work has appeared in the HuffPost, Which?, i paper and This is Money, plus various TV and radio as a personal finance, consumer rights and scams expert, which include BBC Rip Off Britain, LBC, 5 News, Steph's Packed lunch and Newsround to name a few. He was previously the senior consumer rights editor at Which?.

When Adam isn't working he's watching Norwich City yo-yo between leagues or walking his dog.