The UK government is reportedly working on plans to give every household £200 to help with their energy bills.
With millions set to feel the pinch over the coming months, Prime Minister Boris Johnson and the Chancellor of the Exchequer, Rishi Sunak, are said to have approved a £6 billion 'rebate and clawback' scheme.
It would see every household - whether or not they are on some form of benefits - receive a £200 rebate on energy bills from the government.
The aim is to ease the financial burden on taxpayers ahead of the rise in energy prices in April.
However, this is not a grant, and it will eventually have to be paid back.
Essentially, the government would loan energy companies the £6bn, which would then be passed onto the consumer in the form of a rebate on their bills.
Households will pay the money back to the energy companies over the next few years as energy prices fall.
Sources have revealed that the plans could be announced as soon as today (3 February).
Speaking about the scheme, an insider told The Times: "This is not about propping up the balance sheets of energy companies.
"Every penny they get in loans will be passed on to consumers in the form of rebates."
It is not the only plan government officials are said to be looking at, though, with council tax rebates and increased benefits also said to have been looked at.
In the UK, the cost of most energy bills is capped by the regulator Ofgem.
Currently, the maximum amount those on default tariffs can pay a year is £1,277, whereas the limit is £1,309 for pre-payment deals.
However, following a revision of the new caps - to come into effect in April - Ofgem announced that the default cap will rise to £1,971 - a record hike - and prepayment to £2,071, meaning millions will be paying far more every month.
But there are ways households can try and save some money on their bills.
Last month, a mum shared a nifty little trick that could knock up to 10 percent off your energy bills and save you hundreds of pounds over the coming months.
It's all to do with your flow settings on your boiler, which regulate the temperature the water is heated to before coming out.
According to the thrifty homeowner, she has saved £95 since 1 December, and it only took a few seconds to do.
Sharing her hack to Mumsnet, the woman, who made the change on the advice of her provider, Octopus Energy, explained that turning it down a touch could prove incredibly valuable.
She wrote: "You can use less gas by checking your flow settings on your boiler.
"Mine was set to 80 degrees by default, which meant I was spending huge amounts on heating up water that then has to be cooled down with cold water.
"I'm taking part in the Octopus Winter Workout, and according to them, I have saved £95 since the beginning of December and this is the only substantial change I have made."
Featured Image Credit: Alamy
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