Summary

  • The average household's yearly energy bill in England, Wales and Scotland will increase by £693 in April

  • It comes amid a cost of living crisis, with prices soaring and taxes and interest rates going up

  • Rishi Sunak is offering a £200 discount on all electricity bills - which will later be repaid - and a £150 council tax rebate for many households

  • The chancellor tells a press conference the scheme is "right and fair" as the government shares the burden of higher energy prices with households

  • Labour says VAT on energy bills should be scrapped to help people cope

  • The energy price cap, which limits how much providers charge per unit, is increasing by 54% because of an unprecedented rise in gas prices

  • Energy bills for the average customer on a default tariff will rise to £1,971 a year from £1,277

Live Reporting

Edited by Rob Corp

  1. What’s your message to people who say this isn’t enough?

    Asked about people who say the support is not enough, Sunak says he recognises this is a difficult time and the cost of living is the "number one issue" on people's minds.

    But he says the £350 is "a significant amount of money that will make a big difference to the majority of households".

    He says he is also being honest with people, and he can't change global energy prices.

    Sunak says we need the right energy policies, and we are investing in nuclear plants.

  2. Why wasn't more money spent on helping the poorest?

    Sunak is asked why he didn't focus this latest spending just on the poorest in society, if he believes in the government's levelling up plans to improve opportunities across the country.

    He says the price rises are "so significant" that it's not just families on benefits that will "feel the pinch", it's middle income families as well.

    He says the £200 discount on all electricity bills - which will need to be repaid later - and a £150 council tax rebate for many households "obviously is going to mean more to a family on lower incomes".

  3. Should the PM say sorry over Savile accusation?

    Robert PestonDowning Street

    Sunak is asked by ITV's Robert Peston about Boris Johnson's adviser's criticism of the PM's failure to apologise over false claims that Sir Keir Starmer failed to prosecute Jimmy Savile.

    Shouldn't he apologise?

    The chancellor says this is a question for the PM.

  4. Aren't higher prices here to stay?

    Rishi SunakDowning Street

    We're on to questions from journalists now.

    The BBC’s political correspondent Jonathan Blake suggests higher energy prices are here to stay and the government will have to come back with further measures to help in future.

    Sunak says the factors driving up prices are global, and he doesn't have a crystal ball.

    Blake also asks for Sunak's reaction to the resignation of one of Boris Johnson's advisers over the PM's false claim that Sir Keir Starmer failed to prosecute serial sex offender Jimmy Savile.

    Sunak says she was a "valued colleague" and he's sorry to see her go.

    "With regard to the comments, being honest, I wouldn't have said it and I'm glad the prime minister clarified what he meant," he adds.

  5. Households face extra £693 bill without action, says chancellor

    Sunak says that households face an extra £693 on average on their energy bills if the government doesn't take direct action.

    So he says he's helping in two ways - with a £200 rebate on energy bills in October and a £150 council tax discount in April.

    But it's worth noting the £200 rebate has to be repaid by customers over five years.

  6. Plan is right and fair - Sunak

    Rishi Sunak's plan to help people is right, is fair and "will help to ease the anxiety that millions of people feel about rising energy costs by sharing burden between us all", he says.

  7. We are taking the sting out of price rises - Sunak

    There is nothing the British government can do about factors outside its control - such as demand in Asia - which are raising gas prices, Chancellor Rishi Sunak says.

    But he says the government can take the "sting" out of the price shock as the world adjusts to higher energy prices.

  8. Sunak begins his news conference on the cost of living

    Rishi SunakDowning Street

    Rishi Sunak is beginning to speak about his plans to address soaring bills. We'll bring you updates throughout the news conference.

  9. Chancellor to hold news conference on cost of living plans

    Chancellor Rishi SunakUK Parliament/Jessica Taylor

    We’re due to hear from Chancellor Rishi Sunak again at 17:00 GMT, when he holds a press conference setting out more details about his plans to help people cope with rising bills as the Bank of England warns of the biggest fall in living standards for more than 30 years.

    Earlier, he told MPs he would offer a rebate on energy bills of £200 – to be repaid by customers over five years – and a £150 discount on council tax in April for everyone in band A to D.

    This time, he'll be facing questions from the media, who are also likely to press him further on the National Insurance rise due in April and on the controversy over lockdown parties in Downing Street.

  10. Your Questions Answered

    Should I get solar panels or mini wind turbines in the garden?

    Colletta Smith
    Consumer affairs correspondent

    There are lots of pretty small things that you can do around your home to help cut costs.

    You can insulate it better - even draft excluders can make a big difference.

    And there are still some grants available - it's worth checking your council's website - or with your energy supplier to see what they offer.

  11. Your Questions Answered

    How are we expected to pay for such huge price hikes?

    Kevin Peachey
    Personal finance correspondent

    There will be support from energy companies, you can go to your supplier and discuss vouchers that can help pay your bills.

    We're seeing other costs rising, for example, national insurance, groceries and petrol.

    We are aware of the difficulties people are facing, so if you're struggling with debt it's crucial that you seek help early.

    Contact Citizen's Advice and energy companies as soon as you encounter difficulties.

  12. Your Questions Answered

    Are wages rising to keep up with higher bills?

    Colletta Smith
    Consumer affairs correspondent

    That is why we're seeing this huge squeeze at the moment: our bills - whether it's petrol, food, or energy - are going up much faster than our pay is.

    That's if your wages are going up at all. Our income just isn't reflecting what we need to pay out for all our household bills.

  13. Your Questions Answered

    Why have electricity prices gone up?

    Kevin Peachey
    Personal finance correspondent

    The answer is... the wind didn't blow very much!

    That affects the wind farms you see out at sea.

    So although there are quite a lot of renewable energy sources, we had to rely more on gas to generate electricity and that fed through to our bills.

    A lot of electricity is made using gas in big power stations and that's why the increase in global gas prices has affected energy bills in the UK.

  14. Your Questions Answered

    Will the £150 council tax reduction have to be paid back?

    Colletta Smith
    Consumer affairs correspondent

    That will not have to be repaid.

    That's just free money from the government via your council.

    And that's in 80% of council tax bands in England - all but the dead posh houses will get that.

  15. Your Questions Answered

    What happens if I've fixed my energy tariff for two years?

    Kevin Peachey
    Personal finance correspondent

    You won’t be affected for now, but it depends when you fixed.

    When your fixed deal comes to an end, you’ll automatically be moved to the new default tariff.

    So, you will be protected for a time, but lots of people will inevitably see a price rise once that fixed rate comes to an end.

  16. Your Questions Answered

    Are energy bills really going up by £700?

    Colletta Smith
    Consumer affairs correspondent

    For most people, yes.

    Millions of people will pay an extra £693 a year on their energy bills from April.

    It's hard to give an exact figure on how much your bill might increase, as we all use different amounts of energy in our homes.

    But the regulator has given permission for the suppliers to increase bills, and the suppliers will surely do so.

  17. Your Questions Answered

    How long will the payback instalments be for?

    Kevin Peachey
    Personal finance correspondent

    From October, customers in England, Scotland and Wales will receive a rebate of £200 on their energy bills.

    Lulu asks: Do we know how long the instalments to pay that back will be spread over?

    It will be five years - £40 a year from next year.

    That's to pay back the £200 coming off your bill in October.

    There will be another price cap announcement before then and all the forecasts are that it will be another rise.

  18. Watch Your Questions Answered on Facebook

    You can also see our experts answering your questions on energy prices, interest rates and inflation on the BBC News Facebook page.

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  19. Live now: Your Questions Answered on energy bills and cost of living

    You can now see our Your Questions Answered live stream on the rising cost of living by clicking the play button in the picture at the top of this page.

    We'll also bring you a selection of the questions and answers here over the next half hour or so.

  20. Coming up: Your Questions Answered

    From 16:00 GMT here on the live page, we'll bring you Your Questions Answered with our personal finance correspondent Kevin Peachey and consumer affairs correspondent Colletta Smith.

    It comes as interest rates are rising, as well as food and fuel prices.

    So, why are prices so high and what's being done about it?

    You can also watch a live stream by clicking on the red play button at the top of this page (it will appear soon).