UK government to announce help with rising energy bills within a

The government will soon unveil new measures to provide assistance to low-income households facing soaring energy bills, according to a news report.

Energy market regulator Ofgem will announce the new price cap on household energy bills on or before 7 February, and the cap is expected to rise from the current £1,277 a year to around £1,877 when it comes into force on 1 April.

The government is expected to make an announcement on measures to help the least well-off before Ofgem publishes the new energy price cap, Sky News reported.

“It would be ideal if we could announce something before 7 February,” a government source told the news channel.

“Ministers are acutely aware of the 1 April issue.”

Sky said Prime Minister Boris Johnson will personally take part in meetings on the energy crisis next week.

It said the government has not yet determined what form of assistance it will offer, but measures are likely to target the less well-off.

Johnson has rejected calls to for a cut in VAT on fuel, saying it would help households that do not require financial support.

“The difficulty is that you end up also cutting fuel bills for a lot of people who perhaps don’t need the support in quite the direct way that we need to give it,” he said during a Downing Street press conference on Wednesday.

The government “needs to help people who are in fuel poverty the most”, he said.

A government source told Sky News that many of the government’s discussions with suppliers are about the future regulation of the energy market to create a more resilient market.

Meanwhile, the Telegraph reported that NatWest Group PLC (LSE:NWG) is in talks with ministers over a rescue scheme for struggling energy companies as part of efforts to avoid a Treasury bailout.

A large number of UK retail energy suppliers folded last year because the energy price cap prevented them from passing higher costs on to their customers.