Rishi Sunak is scrambling to finalise a package of measures that could be announced as soon as Thursday aimed at alleviating the cost of living crisis, after the energy regulator said annual bills were likely to shoot up by more than 40% in October.
Ministers are under intense pressure to act after the Ofgem chief executive, Jonathan Brearley, wrote to the chancellor on Tuesday to tell him that the energy price cap, which puts a ceiling on domestic bills, was likely to hit £2,800 – an increase of more than £800 – after a sharp rise in April.
