Some of our specialist finance and data journalists have put together a few charts and graphs to help explain why the UK is going through a cost of living crisis.

The first reason is inflation - the rate at which prices of goods rise - which is at its highest rate for decades and projected to accelerate over the course of the year, followed by a slow down.

There is little sign of income keeping pace with pay rises and benefit increases (although minimum pay - through the National Living Wage - is going up by 6.6%), so our "real" income and standard of living will fall.

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The second reason contributing to how much prices have gone up across the board is the rising cost of energy.

Businesses are passing on some of these larger costs to consumers in the form higher prices for all manner of goods from food to clothing.

While households are partially protected from domestic bill rises because of the energy price cap, this is also set to rise even further - meaning an average household's bill from October could reach around £2,800 a year.

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We've also looked at three more factors contributing to the current crisis, including growing fuel costs for vehicles, increasing mortgage payments and upcoming tax rises.

Read more of this analysis here.

Image source, Getty Images

Rachel Reeves has said the chancellor has been "dragged kicking and screaming" into backing its call for a windfall tax on energy companies profiting from high global prices of oil and gas.

The shadow chancellor welcomes Rishi Sunak's anticipated U-turn on the issue, after months of Tory opposition to their calls for the one-off levy.

He is expected to announced a windfall tax on oil and gas from profits today as part of the funding for his plans to help people with the spiralling cost of living.

Reeves also questions what took him so long to change his mind, asking on Twitter: "Why have families had to struggle and worry while he dragged his feet?"

David Wallace Lockhart
BBC political correspondent

Image source, Cabinet Office

Ministers have been facing calls to do more to help with the cost of living for quite some time. So why today?

As recently as the weekend, Downing Street sources were indicating that there would be no imminent announcement on windfall taxes. And it was only a couple of weekends ago that the business secretary called it a "bad idea".

So why the change of heart? Well, ministers have been clear for some time that more help is on the way. And they did get a clearer idea of future energy prices this week.

But - to be more cynical - the government had a particularly uncomfortable day yesterday with the publication of the Sue Gray report into Downing Street gatherings.

Boris Johnson has made it clear that he’s desperate to stop talking about parties. An announcement today of billions of pounds of assistance for households certainly helps to move the agenda on.

Downing Street denies that the timing of this has anything to do with Partygate. But plenty of opposition MPs won't buy that argument.

Financial journalist and campaigner Martin Lewis has welcomed reports that the government is set to scrap a plan that would have seen people given discounts on energy bills but asked to repay later.

Chancellor Rishi Sunak has previously announced a discount of £200 for homes in England, Wales and Scotland from October - though the money was expected to be repaid over five years.

But the BBC understands that discount will now be increased and possibly doubled, and will not need to be paid back.

In a tweet, Lewis, the founder of the Money Saving Expert website, calls the government's initial plan "unpopular", saying he'd urged Sunak to change it.

A lot is being made of the expected £800 rise in the energy price cap from October, especially as it comes on an already significant rise of £700 which came in from April.

But what does this mean for your household bills and how does this price cap work?

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First and foremost, the new expected annual price cap of around £2,800 is not a maximum price a household can pay a year for their bills.

Rather it limits the rates a supplier can charge, include the standing charge and price for each kilowatt hour (the unit of measurement energy bills are calculated from) of electricity and gas.

It doesn't cap your total bill, which changes depending on how much energy you use, so you can and will pay more than it if you consume more energy than a typical household.

It is set by the energy regulator Ofgem based on the typical energy usage by households and the global price of energy.

It applies to millions of people in England, Wales and Scotland on default energy tariffs.

The cap does not apply in Northern Ireland, but consumers there are also facing significant rises in energy prices.

You can read more about the energy price cap here.

Campaigner Jack Monroe writes about experiences of poverty and food bank use.

Jack met users of a food bank in Essex, and spoke to the BBC about how food poverty can "fundamentally change you as a person".

Labour’s Lisa Nandy said she supports the expected windfall tax announcement, but added that the government needs long-term investment to combat spiralling energy costs.

The shadow levelling up secretary told BBC Breakfast the investment the country “desperately needs” must include things like retrofitting homes to make them more energy efficient.

Nandy said her party had been consistently urging the government to make long-term investments and commitments to help bring bills down.

Image source, Getty Images

Chancellor Rishi Sunak is today expected to announce a windfall tax on oil and gas firms that could raise £7bn, as part of new measures to respond to people's soaring energy bills.

A windfall tax is a one-off levy on a company or group of companies benefiting from something they were not responsible for.

Oil and gas firms are getting much more money for their fuels than they were last year. Demand has increased as the world emerges from the pandemic and due to supply concerns following Russia's invasion of Ukraine.

BP and Shell have both reported big profit increases.

Labour and other opposition parties have been calling for the tax. The idea was initially rejected by the government but a U-turn is now expected.

Read more here.

Steve Barclay has declined to confirm whether Chancellor Rishi Sunak will announce a windfall tax to help people with rising energy costs in his statement.

Speaking on BBC Breakfast, the Downing Street chief of staff said he would not discuss details ahead of the announcement in the House of Commons.

He added that the government must take measures to help people who are "particularly hard-pressed" by the spiking cost of living.

We've just heard a statement by Rishi Sunak on the Treasury's cost of living package is now due to take place at 12:30pm in the House of Commons.

We'll bring you full coverage of what he says.

Image source, Shaun Whitmore/BBC

The BBC has been hearing about the efforts of people in East Anglia to save money to beat the cost of living crisis.

Residents of Great Yarmouth, Norfolk, have been benefiting from a social supermarket run by Salvation Army volunteers.

The Sally Store sells food at low prices – and gives away some for free – but aims to give people more choice than a foodbank.

One customer, Kelly Lee, says a shop like this “gives you that bit of hope”.

She has three teenage children and is trying to pay off debts, while also paying for shopping and household bills.

She says “some of that stress has gone” thanks to the shop’s low prices which make sure she can still feed her family.

On her visit, she spent £5.70 and managed to also get four lettuces and tomatoes for free.

Along the coast in Lowestoft, Suffolk, pawnbrokers are getting busier as people attempt to raise cash from their possessions.

Tracey, the manager of the Lowestoft branch of Cash Inn, says it’s common to see people crying as they leave the shop as they don’t really want to part with their heirlooms and sentimental items.

“I think we’re going to see more and more hardship,” she predicts.

The pawn shop’s owner Connor Smith says footfall is up across social groups – and that he’s seeing “more professional people come by”.

Read the full report here.

Millions of households could have hundreds of pounds knocked off their energy bills this winter as part of an expected £10bn package to help people cope with soaring prices.

The announcement comes as millions are facing an additional average £800 rise on their annual energy bill from October, which comes on top of a £700 increase on the typical bill that kicked in from April.

The measures are set to be announced around lunchtime, with Chancellor Rishi Sunak due to make a statement in the House of Commons.

The exact detail of what will be in the relief package is not entirely known, but we have been told of some things to expect:

• Scrapping a plan for a £200 loan to reduce energy bills from October, which would have had to have been be repaid over five years
• It will be replaced by a larger rebate – possibly even doubled - which will not have to be repaid
• Additional help for those on the lowest incomes is also expected
• The measures are expected to be largely funded by a windfall tax on oil and gas companies that could raise £7bn

Read more about what we expect the chancellor to announce here.

Thanks for joining our live coverage on the cost of living crisis, as an announcement is due from the government of a fresh package of support.

Millions of people around the UK are already struggling with the soaring price of food, energy and other key goods.

Inflation is running at around 9%, a 40-year high, and forecasts only expect this to worsen as the year continues.

Stick with us for all the key Treasury announcements, expert analysis and reaction from people around the country.