Sunak races to finalise cost of living response after energy bills warning

Measures could be announced as soon as Thursday as households face price cap rise of more than 800

Rishi Sunak is scrambling to finalise a package of measures that could be announced as soon as Thursday aimed at alleviating the cost of living crisis, after the energy regulator said annual bills are likely to shoot up by more than 40% in October.

Ministers are under intense pressure to act after the Ofgem chief executive, Jonathan Brearley, wrote to the chancellor on Tuesday to tell him that the energy price cap, which puts a ceiling on domestic bills, is likely to hit 2,800, an increase of more than 800, after a sharp rise in April.