Boris Johnson is expected to propose new energy-saving measures within the next month, according to reports.

Ministers have determined that "something needs to be done" before prices rise on April 1 when the price ceiling is raised; however, they have yet to specify what that something will be. According to Sky News, the Prime Minister will attend talks next week about the energy problem.

Boris Johnson refutes calls to cut tax from energy bills

The measures will need more funding from the Treasury, which has already spent billions in response to the coronavirus outbreak. On or before February 7, when energy regulator Ofgem announces the size of the price cap rise, a statement of what steps would be taken is expected.

From April through September, this will be in effect. However, it is predicted that homeowners would face a £600 ($812) yearly hike, implying that annual costs might exceed £1,877 ($2540). Options under consideration are likely to benefit the least fortunate.

One option is to broaden the Warm Home Discount. The plan, which offers £140 ($189) from October 2021 to March 2022, already qualifies 2.2 million homeowners. Ministers have already stated that the plan should be improved by £10 (13.9) next winter in order to cover an additional 800,000 homes. However, in order to combat the energy price issue, the program should be made more generous sooner, Daily Mail reported.

Customers may expect increased shopping bills as a result of firms passing on the expenses of rising energy prices, according to the news. Three out of five businesses surveyed by the British Chambers of Commerce expect their pricing to rise in the next three months.

Families have been told that the energy price cap will be raised in April, causing home gas and electricity bills to jump by up to 50%. Boris Johnson rejected proposals last night to postpone green fees on home bills in order to relieve consumer strain.

Energy industry CEOs demanded that the charges, along with VAT, be eliminated from bills at a meeting with Business Secretary Kwasi Kwarteng yesterday. The CEOs also requested that the government give loans so that businesses may support clients, as well as an increase in the £140-per-year warm home discount provided to the poorest people.

Read Also: Poverty in Afghanistan Prompts More Desperate Parents To Sell Their Children; Wary Nations Meet to Seek Solutions

Cash-strapped families to get help with soaring energy bills

In the Brexit referendum, he vowed to abolish the fee as a fundamental benefit of leaving the EU. When asked about the rising cost of living and his 2016 vow to cut VAT on gas and electricity, the PM said, "I'm not ruling out more steps."

Johnson also stated that he would "do everything we can" to assist. Huge increases in the cost of electricity and gas are expected to drive the energy price ceiling up to £2,000 ($2,707)per year. It is presently at a new high of £1,277 ($1,728).

Energy price hikes will occur at the same time as significant National Insurance increases, which will begin in April, and amid rising inflation. Johnson has been pushed by a large number of Tory and Labour MPs to cut VAT to help alleviate the approaching crisis.

However, senior government officials caution that lowering the 5% VAT on electricity will not be enough. "It would barely touch the sides of what is needed for individuals not to feel the discomfort," a senior insider stated, as per The Sun.

The Business Department is preparing a list of urgent measures to propose to the Prime Minister, including a reduction in VAT, a temporary suspension of green taxes, and deferral of gas and electricity payments for the most vulnerable.

However, they are up against the Treasury, with a VAT cut alone costing the government £1.7 ($2.3) billion. "Ministers are engaging with the regulator and suppliers to investigate potential mitigations so we can safeguard consumers," a Business Department source said.

Related Article: Boris Johnson's Leadership in Jeopardy as Lord Frost's Resignation Sparks Fresh Tory Concern Amid UK's COVID-19 Omicron Battle

@YouTube