Most of the more than £1bn the Chancellor, John Healey, is considering for energy support would go on increasing the Warm Home Discount, the Guardian reports, according to a summary published by pressbee.net. The Guardian also reports that Healey has not committed to keeping the temporary VAT cut on energy bills.
The Warm Home Discount is currently a £150 reduction on bills for around six million households on means-tested benefits, according to the report. The extra money would be aimed at poorer households.
The VAT cut was announced by the Prime Minister, Andy Burnham, on 21 July as a time-limited measure. He described it as "immediate action to cut taxes on energy bills".
Ministers are alarmed by forecasts that the energy price cap could rise by as much as £442 in January, the Guardian reports. A rise of that size would wipe out the saving from the VAT cut. GB News had earlier reported a forecast rise of £276, with some forecasts going as high as £442.
The Treasury has not confirmed any of these measures, and the figures have not been independently checked.