Paul Johnson, director of the Institute for Fiscal Studies, has been speaking to BBC Radio 4's World at One programme.

He says the short-term question for politicians amid soaring energy bills is: "How much do they want to help people, and which people [do they want to help], over the period coming up as inflation hits 13%?"

In the medium-term, Johnson says a proper strategy for economic growth is important and it's about far more than cutting taxes.

He adds that most of our European neighbours have higher taxes than Britain.

Johnson says for the UK it's better to have targeted government support for low-income households, rather than using a lower cap on energy prices, as France has done.

It wouldn't work in the UK, Johnson says, because "a large amount" of the money that would be used to subsidise energy costs "would go to people who don't particularly need it".

And, Johnson adds, France's electricity market is distinct from the UK because it's largely government owned and there is a higher proportion of nuclear energy in the mix.

Image source, James Gilmour

With his energy bills set to double in the coming months, James Gilmour has borrowed a £5,000 loan, to be repaid over five years.

James, who lives in Essex with his partner and three kids, has already seen his gas and electricity bill double from £145 per month to £320. It could reach £600 by October.

"As a family of five we simply cannot afford to pay this," says James, who works in the car industry and whose partner is a part-time teacher.

"We are already getting halfway into the month with no money left for food and essentials."

The loan he’s taking is charged at 4.4%, and he’s worried about falling deeply into debt.

"This is the only way to survive through this crisis and I am just hoping it settles back down as another loan will not be possible if this continues for years to come," he tells the BBC.

The government is "working up" a package to help people with the cost of living that the next prime minister could introduce when they get the keys to No 10, a Treasury minister has said.

Simon Clarke, who is chief secretary to the Treasury, tweeted, external that it was "absolutely right to consider these options in the round" once a new PM is in place.

Clarke added that announcing new un-costed policies during the Conservative leadership contest would mean they would be introduced "without sight of all the details of the pressures people could face".

Separately, Treasury officials have stressed ahead of a meeting between ministers and energy companies tomorrow that decisions on major fiscal issues – such as changes to the energy profits levy or windfall tax – will be decided after the new prime minister takes office next month.

Hannah Absalom is a PhD student, who tells the BBC she risks falling into debt for the first time in her life.

Her area of research is the psychology of poverty, and she says it's "quite surreal" to be experiencing poverty at the same time as studying it.

"I've known this is coming and I've been making cutbacks over time. I've been doing things like buying electric clothing, so I'm planning on heating myself rather than my property this winter."

Hannah, who is working part-time earning £850 per month, adds:

Turning to her area of research, she says we must think about the long-term impact of the crisis caused by rising energy prices.

"It's not just a matter of a short-term lack of money, it's the long-term effects of living for a long period with these types of impossible choices to make," she says.

Labour's Bridget Phillipson says the party has been "consistently ahead of the government" on this issue – from the windfall tax to cutting VAT on energy bills.

The shadow education secretary says the country would "hear very, very soon" from leader Sir Keir Starmer about Labour's new proposals to deal with the cost of living and rising fuel bills.

Take a look at what she had to say a little earlier:

We've heard about the price cap and how it's set to increase dramatically over the coming months, but why are our energy bills going up in the first place?

These are some of the factors contributing to the "perfect storm" of issues, according to independent research centre the Oxford Institute for Energy Studies:

• A spike in demand for gas worldwide as countries emerged from the coronavirus pandemic forced wholesale prices up
• Increased demand was also driven by a particularly cold winter in the northern hemisphere
• That's been exacerbated by anxiety in the global energy market about the war in Ukraine, with Russia supplying a significant proportion of Europe's gas
• Many unstable energy suppliers in the UK have collapsed, forcing customers to take on more expensive new tariffs with different providers

Energy regulator Ofgem has also said it will now review the price cap every three months rather than every six, which Cornwall Insight says has contributed to its increased forecasts.

Rajdeep Sandhu
Political Correspondent

Image source, Reuters

The Treasury might be keeping all options open for the next prime minister including a windfall tax which taxes the profits of energy companies.

But contender Liz Truss has poured cold water all over the idea of expanding the one already in place.

It's not completely surprising given her low tax agenda that she said "the answer is not yet another tax" and called it a "Gordon Brown-style solution".

Her focus instead would be on increasing our energy supply and getting the energy companies to keep bills as low as possible.

She also isn't buckling under pressure to get together with the old gang - Boris Johnson and Rishi Sunak - to announce some help now.

She wants to be fully in control of her own policy if she wins this race.

Sam Gruet
BBC Newsbeat's cost of living reporter

For Simon Ward, from Dorset, energy bills were "manageable" at the start of the year when he was paying £120 per month, but things are really difficult now with his payment requests going up to £415.

He currently owes more than £1,300 to his energy company and is unsure about what the future holds.

"Since the crisis started, we are paying literally as much as we can every month," he tells the BBC.

He feels energy companies "say the right things" but it’s still a difficult situation.

"We're not behind on any of our priority bills but it's still really daunting to have a young family, we have a child on the way.

"It's not quite at the stage where it's heating or eating but it is taking its toll on me just seeing that number not going down."

Image source, Simon Ward

Both Simon and his wife Katherine are in work but are "not particularly well off".

"We pay what we owe, but I can’t keep on top of it. We receive advice on things like turning lights off but it’s more than that.

"The balance is getting higher and higher and I don’t see how it’s going to change. It’s scary."

Earlier we heard from Money Saving Expert founder Martin Lewis, who told BBC Radio 4's Today programme that millions could be left "destitute and in danger" by their soaring energy bills.

Here's more of what he had to say about the impending price hikes - in an impassioned interview he described the energy price rises as a "national crisis".

Image source, EPA

We're reporting today on the pressures facing people around the country as they deal with the rising cost of living and in particular increases in energy costs.

Ministers and energy bosses are meeting tomorrow to discuss rising prices and the sector's profits.

Let's take a look at what's happened so far today:

• Any further help on the cost of living will have to wait until Parliament returns in September, Education Secretary James Cleverly has said
• He said new plans would need "proper scrutiny" by MPs – but help could be in place by October, when prices are expected to rise further
• Octopus Energy's chief executive Greg Jackson said winter energy bills may be at least £500 more than previously thought which "gives an idea of the extra support that’s needed" from government
• Almost a quarter of households already owe £206 on average as people fall behind on their bills ahead of winter, a survey for comparison site Uswitch found
• Consumer journalist Martin Lewis warned the country was facing a crisis on the scale of the coronavirus pandemic which could leave "millions destitute and in danger"

Find out what help you're already entitled to here.

Image source, Getty Images

As we're seeing in the UK, a jump in wholesale gas prices has led to soaring bills across Europe.

Some countries have adopted innovative approaches to reduce energy costs.

Last month, Germany's northern city of Hanover said hot water would no longer be available for hand washing in public buildings, or in showers at swimming pools, sports halls and gyms.

Elsewhere, Germany's Cologne Cathedral's lights were switched off at 23:00 local time on Tuesday in a bid to save energy.

In Spain and France, air-conditioned businesses have been told to keep their doors closed to cut energy waste.

And shops in France will be fined up to €750 (£635) for breaking the air-conditioning rule.

Energy costs in Europe have spiralled since Russia's invasion of Ukraine in February, with Russia significantly reducing its supply in response to Western sanctions.

Many countries are increasing spending to support households with rising bills – take a look at how they compare below.

Image source, .

The latest forecasts suggest the energy price cap will increase by 81% in October, before a further 19% rise in January.

Energy consultancy group Cornwall Insight said that would result in average annual energy bills of £4,266 per household.

But what will that look like month-to-month?

Let's put it this way: For every £100 of direct debit being spent on your energy bills at the moment, you'll be paying £181 after that first price hike in October.

If the predictions are correct for January too, that will go up again so that for every £100 you're paying on energy right now, you'll be paying £215 in five months time.

Image source, Veronica

Boris Johnson has recently defended leaving decisions on the cost of living to his successor – but Veronica in Portsmouth says the lack of government action is "frustrating".

It's hard to believe Johnson, Liz Truss and Rishi Sunak were all in the same cabinet "pulling in the same direction", she tells BBC Radio 5 Live.

"I despair with them... I want a government that understands what it feels like in the real world and I don't feel either of the candidates running for prime minister really understand."

She wants a clear way forward from "a government that cares, or at least gives me an indication they care".

Veronica says she's also frustrated with the opposition, which she thinks isn't offering a "concise" alternative.

Read more: What are Truss and Sunak promising on the cost of living?

Image source, PA Media

Let's get more from Education Secretary James Cleverly now – as we reported earlier he's said further support on the cost of living will have to wait until Parliament returns in September.

He said it's not as simple as recalling MPs to have an emergency debate, as changes to tax and financial systems need a "proper scrutiny process" which couldn't be completed in a day.

"An emergency Budget needs to be comprehensive and by definition, therefore, a complicated thing," he told ITV's Good Morning Britain.

But Cleverly, who is backing Liz Truss to be prime minister, did say an emergency Budget could be held before prices are expected to go up again in October.

In the meantime, he said there was already an "unprecedentedly large" support package in place (check what you're entitled to here).

Dharshini David
Economics Correspondent

Should energy suppliers be forced to shield customers from soaring bills?

That’s happened in France, where households have seen a far smaller rise.

But it’s not an easy answer: France’s EDF has lost £7bn so far after being forced to sell energy below market price, an amount it is now suing the state for. And it faces being fully nationalised at a cost of billions of euros, with more losses to come, which may ultimately be borne by taxpayers.

Moreover, EDF supplies the vast majority of the French market. By contrast, the UK market is more diverse, the result of attempts to increase competition.

Suppliers here range from the biggest, well-financed names to smaller, more vulnerable ones. Twenty-eight have failed over the last 18 months, saddling customers and taxpayers with bills running into billions of pounds - and other suppliers with more households to serve at higher cost. Adding to their costs may be risky.

If you're struggling to afford your gas and electricity bills, Citizens Advice suggests contacting your supplier to come up with a payment plan, external.

But, if you're looking for ways to reduce your energy usage, here are some things you can do to try and save yourself some cash:

Image source, .

More from Cabinet minister James Cleverly now, who says the UK had the highest tax burden for 70 years under Rishi Sunak as chancellor.

The education secretary, who backs Liz Truss for the Tory leadership, was asked by Simon Jack on BBC Radio 4 what help Truss would give to pensioners and others who do not pay tax and were struggling with rising energy bills.

He said: “For the people who won’t benefit directly from tax cuts, she is looking at targeted help. For those people who do pay tax, what she has said quite rightly, is to make sure that we don’t take any more money from them than we really need."

Cleverly said the UK needed to make itself more competitive to attract companies to invest in “longer-term sustainable cheaper sources of energy generation”.

But he would not be drawn on whether Truss would cut windfall taxes on energy firms.

Nick Eardley
Political correspondent

The Education Secretary James Cleverly has said any major support package will have to wait until Parliament returns next month.

Speaking to the BBC this morning, he said the chancellor meeting energy companies tomorrow was a sign the government was "doing something".

But he added: "A major fiscal event... needs to be done properly through Parliament."

Cleverly, who is supporting Liz Truss in the race to be the next PM, said she would set out her plans in September. He claimed Truss was looking at support packages for people who need it most - even though Team Truss has said she is not committing to anything.

She has repeatedly said her priority is tax cuts - but that she would look at what more can be done.

Image source, Getty Images

The government must do more to help people with rising energy costs, Labour has said.

The Conservatives have "not planned for the long term" around energy security and insulating homes, Labour MP Bridget Phillipson told BBC Breakfast.

Her party has plans for supporting families more, the shadow education secretary added.

"Conservative leadership contenders taking pot shots at each other, complaining about renewable energy - they're more focused on the Conservative Party than on the desperate situation that pensioners are facing... who are absolutely terrified about what the winter will hold," she said.

"Parents who are skipping meals to make sure their kids don't go without, food banks that see people turning down food that requires cooking because they don't have the means to heat it up - this is just a shocking indictment of Britain in the 21st Century."

Nadhim Zahawi is to reiterate the government's commitment to delivering an equivalent to the £400 energy bill discount in Northern Ireland.

The chancellor is visiting Northern Ireland later to hold meetings with ministers and the utilities regulator.

In May, the government drew up plans to help all households in the UK with rising fuel bills.

But the lack of a functioning executive meant it was unclear how the scheme would reach Northern Ireland.

Zahawi said the government was "absolutely committed" to bringing similar measures to Northern Ireland.

An announcement about the extension of the scheme to Northern Ireland is not likely to be made this week.

Read more here.