The government will announce an emergency package to help people through the cost of living crisis tomorrow.

Rishi Sunak will give a statement and set out measures designed to help the poorest deal with the biggest squeeze on living standards in decades.

It has been widely reported the chancellor will adopt Labour’s policy of imposing a windfall tax on energy firm profits to fund the assistance.

Measures worth around £10 billion will be announced and could include an increase to the warm homes discount.

It remains to be see whether winter fuel allowance changes, a Universal Credit uplift or cuts to VAT or council tax will be utilised. 

It comes after Ofgem chief executive Jonathan Brearley’s warned the energy price cap is likely to rise by another £830 to £2,800 in October.

The chancellor has been under huge pressure from the opposition and some within his own party to act on the cost of living crisis.

But with inflation running at a 40-year-high, the Treasury will be keenly aware that pumping money into the economy could result in prices rising even higher.

A Treasury spokesperson said: ‘We understand that people are struggling with rising prices, which is why we’ve provided £22 billion of support to date.

‘The chancellor was clear that as the situation evolves, so will our response, with the most vulnerable being his number one priority.

‘He will set out more details tomorrow.’

After weeks of resisting calls to act, the timing of the announcement – which follows a bruising day for the government after the publication of the Sue Gray report – is likely to raise eyebrows from critics.

The prime minister has said he wants to ‘move on’ from the partygate affair and focus on the cost of living crisis.

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