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Rishi Sunak is expected to announce additional funding for British households, which could include a payout of up to £500 to help with energy bills.
A government source told the Daily Mail that the Chancellor of the Exchequer is finalising the details of the package with the Prime Minister, which he could reveal as early as tomorrow (26 May).
The news arrives after the announcement that the UK’s energy price cap - the maximum price per unit suppliers can charge you - is expected to increase to £2,800 later this year.
Currently the cap sits at £1,971, having already jumped a staggering £693 from the previous figure earlier this year, a rise which saw households pay an extra £700 a year on average.
Following Ofgem's announcement that the cap could increase by a further £800, a Downing Street spokesperson said they are 'actively looking at what more could be done in this space'.
Initially, they listed some of the support set to arrive in October, including a £200 discount from energy bills and an increase of the Warm Home Discount to £150.
However, the source said the latter could jump to £500, as well as a potential increase in benefits in order to offset the issues caused by soaring inflation rates and energy bills, which has pushed many low-income households even further into poverty.
This follows a report from The Times suggesting the government is considering a range of support options, including a one-off increase to £300, £500 or even £600 for the warm home discount.
While the government was already planning a financial intervention later this year, the insider said the scheme is being fast-tracked, although whether this will happen remains to be seen.
They added that there are concerns amongst MPs that the Tory government looks out of touch following the ongoing Partygate scandal.
Earlier this week, photos emerged showing Boris Johnson drinking at one of the many gatherings held at 10 Downing Street when the rest of the UK was following Covid restrictions.
As for the rising energy price cap, Ofgem's chief executive Jonathan Brearley spoke yesterday about what he describes as 'genuinely a once-in-a-generation event not seen since the oil crisis of the 1970s'.
EXCL: @ITVNews has obtained pictures of Boris Johnson drinking at a No10 party during lockdown in November 2020.— Paul Brand (@PaulBrandITV) May 23, 2022
The photos cast fresh doubt on the PM's repeated claims he was unaware of rule-breaking in No10 during the pandemic.
See all images here:https://t.co/sUJiWpxqmm pic.twitter.com/iXopuPIQu7
He said: “I am afraid to say conditions have worsened in the global gas market since Russia’s invasion of Ukraine. Gas prices are higher and highly volatile. At times they have now reached over 10 times their normal level.
“I know this is a very distressing time for customers but I do need to be clear with this committee, with customers and with the government about the likely price implications for October.
“Therefore later today I will be writing to the Chancellor to give him our latest estimates of the price cap uplift.
“This is uncertain, we are only part way through the price cap window, but we are expecting a price cap in October in the region of £2,800.”
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