Chancellor Rishi Sunak has warned colleagues that there is a limit to how much help the government can give to offset soaring energy prices, and that support should be targeted at UK households that need it most.
Kwasi Kwarteng, business secretary, will meet industry leaders on Wednesday to discuss several options that could help households contending with the spike in energy prices and the broader cost-of-living crisis.
Options being considered by the business department and the Treasury include cutting value added tax on energy bills, increasing the warm homes discount available to vulnerable households, as well as providing loans to energy companies so that they can in turn help consumers.