MILLIONS of Brits could get a rebate on their energy bills worth hundreds of pounds under fresh plans to tackle the cost of living crisis.
Ministers are looking at proposals for the Government to underwrite around £6 billion worth of loans to energy firms to cover spiralling wholesale prices.
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The money will get clawed back over time, with the costs spread over several years under Boris Johnson and Rishi Sunak’s “rebate and clawback” plan.
It could mean £200 for every British household to help deal with the huge price rises when the energy price cap soars by 50 per cent this spring.
The Sun understands the plan was floated with energy firms – with several supportive but some opposed.
Industry insiders said the plan would succeed in stopping huge inflation as a result of dishing out cash – and would help thousands cope with rising bills.
It will also likely include an extension of the warm homes discount for millions of families on low incomes who will be harder hit.
Mr Johnson and Mr Sunak are said to have signed off a package of help to be revealed in days.
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The price cap is set to soar from April – with the new cost to be announced by Ofgem next Monday.
The Treasury refused to comment on speculation last night.
Last week, Boris Johnson and Rishi Sunak vowed to plough on with plans to raise National Insurance – after the PM came under pressure to scrap the the hike.
Mr Johnson had reportedly been “wobbling” on the decision as hard-up Brits face a cost of living crisis.
But he’s now doubled down on the controversial rise, which will see the tax go up by 1.25 percentage points in April, after some said he’d do “anything to survive” amid Partygate.
The NI hike will add £130 a year to the tax bill of Brits on a £20,000 salary, and £255 for those who earn £30,000.
People on £50,000 will pay £505 extra annually, those on £80,000 will have to fork out £880 and earners on £100,000 face a £1,130 bill.
Writing in The Sunday Times, the PM and his Chancellor hailed the “progressive” policy.
And they warned there’s “no magic money tree” to bail the country out of its Covid debts.
Energy bills will rise by £600 a year for a record 22million households in April.
The new price cap, which is set to rocket from £1,277 to £1,900 for an average household, will be confirmed on February 7.
When it was last reviewed in October last year it protected 11million households — but that number has now doubled to 22million.
That is because millions of households have come off cheap fixed tariffs or have been moved to more expensive deals with new suppliers after their previous firm went bust.
They now face paying almost double for gas and electricity compared to August last year, while wholesale gas prices soar to historic levels.
The average fixed tariff was £984 between October and December last year, according to Energyhelpline.com.
This means many households will now have to find an extra £76 a month.
Experts predict energy bills will rise again in October to over £2,000 a year.
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