Image source, Getty Images

Every six months, energy regulator Ofgem reviews how much suppliers in England, Wales and Scotland can charge households on a standard - or default - tariff.

This is called the energy price cap.

The cap sets the prices suppliers can charge per unit of energy.

However, it does not mean there is a limit to how much people can pay. The more gas and electricity you use, the higher the bill.

There is a separate energy market in Northern Ireland where prices have also risen sharply.

The front pages are dominated by the expected record rise in energy bills.

It's "D-Day on prices agony" is the Mirror's headline, with the lead story focusing on the "surge" in energy costs.

The Sun headlines with "Black Thursday", while the Mail warns "energy bills to soar by £650," adding "the heat is on Rishi".

The chancellor's plan to soften the blow is the main focus of the Financial Times, which predicts Rishi Sunak will work "in tandem" with the Bank of England.

It says he will lend money to power companies to be passed directly to consumers, while the bank is set to announce a rise in interest rates to hold down inflation.

The Times reports millions of people are set to be given council tax rebates of hundreds of pounds. The paper says the move from Chancellor Rishi Sunak is designed to "limit the impact of soaring energy prices" on poorer households.

Kevin Peachey
Personal finance reporter

Image source, Getty Images

This is the day when you will find out more clearly - in pounds and pence - what the cost of living crisis means for your finances.

Rising energy bills affect nearly everyone, and we will learn how much more you are likely to pay, on top of tax rises.

Then we can expect to hear what the government plans to do to mitigate that hike.

Following on from that, the Bank of England will announce whether the cost of borrowing will get more expensive.

It is no coincidence that these statements all come within hours of each other. Unless you have a generous boss, this could be the most significant day of the year for your finances.

Many families have been struggling with the cost of living as fuel prices and energy bills soar.

Rising energy prices in global markets, supply problems and higher shipping costs are hitting retailers, with many costs being passed on to consumers.

Staff shortages are a particular problem in the UK, due to factors including Brexit and the pandemic, and are prompting some employers to raise wages, which can contribute to inflation.

The rate that prices are rising in shops almost doubled over the past month, data suggests.

We'll find out later (11:00 GMT) just how much our electricity and gas bills are likely to go up in April.

That's when regulator Ofgem will announce the new energy price cap – the maximum amount per unit for power that suppliers can charge in Great Britain.

But it's expected to rise steeply, because global wholesale gas prices have gone up so much.

In fact, there are fears Ofgem's announcement will take the average annual domestic energy bill to about £2,000 for 22 million households, up from about £1,300.

Find out more about the energy price cap here.