Cost of living: Government plan to help households could come within days

Image source, Getty Images

The plan to help people with the rising cost of living could be announced as soon as Thursday, according to the BBC.

As prices for fuel, food and energy continue to soar, the PM and chancellor are under increasing pressure to act.

Chris Mason said the government was desperate to shift the agenda on from Partygate.

The announcement was not timed to distract from the report.

The report on events held in Downing Street is expected to be sent to No 10 on Wednesday.

An announcement could be made on Thursday, when the Prime Minister is to meet the Chancellor.

The economists have been invited to explore the options available to Mr Johnson.

According to sources, Mr Johnson spoke on Tuesday about the need to balance government spending and intervention with not raising inflation.

It is understood that Kit Malthouse called for a return to a low tax society.

The energy price cap, which limits how much providers can raise prices, is expected to increase to 2,800 a year in the autumn, according to the energy regulator Ofgem.

The opposition wants to impose a windfall tax on oil and gas companies to raise money to help the hardest hit.

While attitudes towards the idea in government seem to have softened, neither Mr Johnson nor Mr Sunak have committed to the move.

According to Sunak, help for the most vulnerable could only be designed if the scale of the problem was measurable.

The intervention from Ofgem provides that.

The question is what help is offered and what cost.

Targeted possibilities include uprating benefits or a lump sum payment.

There is a dilemma of whether to offer something that more people will benefit from or not.

Changes to the Warm homes discount and winter fuel payment are some of the options that will be available in the months ahead.

The windfall tax on the oil and gas companies could easily be more costly than any combination of these possibilities.

An intervention that is noticeable will cost more.

A number of ministers have raised concerns about the idea of a windfall tax, with Mr Johnson saying he was not attracted to the measure in principle.

He told reporters that there is more to be done to tackle rising living costs.

Labour leader Sir Keir Starmer has called on the government to introduce a levy.

How is the cost of living affecting you? You can email haveyoursay@bbc.co.uk.

If you are willing to speak to a journalist, please include a contact number. You can get in touch with us in a number of ways.

If you cannot see the form on this page, you can email HaveYourSay@bbc.co.uk or use the mobile version of the website to submit your question or comment. Please include your name, age and location in your submission.