Under the original scheme, prices would have been capped for two years at £2500 per year, with Truss just last week in PMQs saying that her energy support package would be guaranteed for two years.
The newly revised scheme will see help for energy bills last until April next year before being reviewed to look at a "new approach" to target support at those worse off after that.
Mr Hunt said: "The government has today decided to make further changes to the mini-budget and to reduce unhelpful speculation about what they are, we've decided to announce these ahead of the medium-term fiscal plan, which happens in two weeks.
"We will continue with the abolition of health and social care levy and the stamp duty change, off-payroll working reforms, the new VAT-free shopping scheme for non-UK visitors and the freeze on alcohol duty rates.”
Shadow chancellor, Rachel Reeves, slammed this latest series of u-turns saying: "The Conservatives have lost all credibility.
"The humiliating climb-down on their energy plan begs the question yet again – why won't they bring in a windfall tax on energy producers to help foot the bill?
"Only Labour offers the leadership and ideas Britain needs to fix the economy and get out of this mess."
The Chancellor will address MPs in the House of Commons at 15.30
Emma Hollingworth, Distribution Director, MPowered Mortgages, comments: “The new Chancellor’s decision not to scrap the cuts to the Stamp Duty is an indication that the government is still serious about tackling the issues the housing market faces. Interest rates are now at the highest level seen since 2008, meaning many first-time buyers could be priced out of getting on the housing ladder, so the cuts to Stamp Duty is a welcome change for many.
“Indeed, the biggest challenge we are currently faced with is the cost-of-living crisis. Confidence will come from support which we have already seen in the form of help with energy bills and SDLT cuts. Lenders can also play their part by being wise to the concerns many will be facing and adjusting products accordingly – whether it be in the form of free valuations, cash-back products, or competitive rates. This is certainly a priority for us at MPowered Mortgages.”
Nathan Emerson, CEO of Propertymark, said: “The Chancellor’s commitment to the Stamp Duty thresholds that better represent house prices will certainly help to restore some market stability and confidence which has taken a hit. Mortgage rates were already rising and we hope the wider announcements made today will translate into a settling down of that trajectory so buyers can proceed with more confidence that some of those additional lending costs will still be offset by Stamp Duty savings.”
Iain Crawford, CEO of Alliance Fund, commented: “Although today’s U-turn is an attempt to calm the waters, it’s fair to say that the government’s shambolic behaviour is unlikely to distil much confidence in the UK economy.
"However, as it stands, the UK public will embrace any shred of stability afforded to them in what are currently very uncertain times and the one silver lining of this latest government backtrack should be a boost to property market confidence.
"We’re already seeing a strengthening of the pound with gilt yields also dropping and this easing pressure on the markets should reduce the likelihood of higher interest rates.
"This will help settle what has been a turbulent mortgage market in recent weeks, rejuvenating buyer demand levels, which will also help to stabilise house prices and investment into the UK property market.”
Marc von Grundherr, Director of Benham and Reeves, commented: “An extraordinary turn of events, quite literally, but one that should help strengthen a property market that was starting to wobble under the pressure of increasing mortgage rates and dwindling buyer sentiment.
"While maintaining a cut to stamp duty will help stimulate buyer demand within the market, overall market health will be far better maintained by stabilising the mortgage sector and our ability to fund a property purchase in the first place.
"We should now see this with pressure easing, making the threat of further mortgage rate increases over the coming months less likely.”
James Forrester, Managing Director of Barrows and Forrester, commented: “It’s impossible to tell just what direction the economy will head following the latest government spectacle, but today will bring an air of positivity to what was quickly becoming a beleaguered property market.
"Stability in the gilt markets will bring positive movement for those looking to borrow. But it’s important to understand that we aren’t going to return to a sub-one per cent base rate and homebuyers must be prepared to pay more in mortgage costs when climbing the ladder.
"However, the government’s choice to maintain the cut to stamp duty tax signals their intent to keep the property market buoyant and this should help boost buyer confidence in itself.”
Chris Hodgkinson, Managing Director of HBB Solutions, commented: “A case of too little, too late, where the UK property market is concerned as the damage has already been done to homebuyer sentiment, as well as their ability to borrow in order to fund their purchase.
"Even if we do now see mortgage rates level out, many will be far too worried to proceed with a purchase in fear of another government U-turn further down the road, leaving them unable to afford the cost of their mortgage.
"As a result, we can expect market activity to remain muted over the coming months, causing house prices to drop as a result.”
Richard Pike at Phoebus Software, said: “For the housing market we only have to look at the latest Rightmove HPI released today, which shows that house prices have hit another new record average, despite recent economic turmoil. Something that highlights the continuing problem of supply and demand. While the demand is there and the changes to stamp duty remain, along with an imminent increase in interest rates, pressure is almost certainly going to be on lenders.The reduction in the number of mortgage products available since the mini-budget is a cause for concern, especially for first-time buyers. Now is the time for lender innovation to ensure that the continued demand can be catered for.
“It is still early in the peace but rising interest rates and high inflation have yet to quell borrower appetite. How long that will be the case remains to be seen, but for now, we all need to keep adapting to the ever-changing landscape. The interest rate decision later this month will be a big barometer of what the Bank of England thinks of this U-turn."
