The government could consider increasing the loan to households to help cover the rising cost of energy bills.

Boris Johnson could reportedly double the £200 energy loan to £400 as concerns over the cost of living continues to grow.

Mr Johnson’s spokesperson hinted that more help could be available as they consider how to support families through this “difficult period”.

They said: "We will continue to give people the support they need throughout this difficult period as we did during the pandemic.

“We continue to monitor the situation - we do acknowledge the impact of rising wholesale gas prices and petrol prices and the impact of that on families."

A Treasury source added: “We do not know where energy prices will be by the time the next decision on the cap comes on and it would be irresponsible to decide on a policy response before we have more certainty."

28 million households to receive up-front rebate

The Government will give all 28 million households in Britain a £200 up-front rebate on their energy bills from October. This will be recouped by hiking bills by £40 per year over five years from 2023.

Chancellor Rishi Sunak has also promised a £150 council tax rebate for homes in bands A to D.

Sir Keir told the Commons: “The big gamble behind that policy was that energy costs would drop quickly after a short spike. That bet now looks certain to fail. When will the Prime Minister force the Chancellor into a U-turn?”

Mr Johnson replied: “The Chancellor has set out plans to help families with energy costs with unprecedented measures to abate council tax by £150 in addition to all the other schemes that we are putting forward.

“Yes, he’s absolutely right that we need to meet the long-term impacts of the spike in energy prices and that’s why I will be setting out an energy independence plan for this country in the course of the next few days to ensure that we undo some of the damage of previous decisions taken, not least by the Labour government not to invest in nuclear, and so that we prepare our people for the long term and its sustainable, cost efficient energy supply.”

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