The energy price cap has been talked about a lot recently, as another rise is expected to be announced in a few weeks. But what actually is it?

The energy price cap is the maximum amount that suppliers can charge customers in England, Scotland and Wales for each unit of energy. It doesn't apply in Northern Ireland.

It's designed to protect consumers from short-term price changes.

Every three months, the cap is adjusted by Ofgem - the government's regulator for electricity and gas. The adjustments are based on the price energy suppliers pay producers for the energy and gas that they then sell to consumers.

Energy prices have risen sharply as demand for gas increased when Covid restrictions eased, and because the war in Ukraine has threatened supplies from Russia. Experts have predicted the cap will continue to rise, potentially reaching up to £4,200 a year for a typical household.

You can read more about the energy price cap, and how this will impact bills across the UK, in our explainer here.

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Nick Eardley
Political correspondent

Ministers have said they can’t make big financial decisions until the new prime minister takes office.

So while the chancellor is hauling energy bosses in for talks on Thursday, it’s seems unlikely there will be significant steps this month.

Treasury sources say they are keeping all options on the table so the new government can act swiftly next month.

As a result, a lot of attention remains on the two people who could win the keys to Number 10.

Rishi Sunak says he will offer support when bills go up. But he’s not outlined exactly who will qualify and what they will get.

Liz Truss hasn’t answered the question about whether she’ll announce new grants. She has said her priority is lowering taxes – but that won’t benefit everyone. Other measures she says will be for an emergency budget next month if she is prime minister.

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Joanne in Nottingham called Radio 5 Live to say she's having to "penny pinch" because of the cost of living and is already planning for a "different" Christmas than usual.

"I don't know what we can do [to keep bills low]," she says, "there's things the government can do, but as a household all we can do is cut back even more."

She says her food shopping is already done in the "cheapest places available to me" and is planning to change how she cooks food to avoid using the oven.

"My daughter's birthday is just before Christmas, my birthday is just before Christmas... it's going to have to be cut back to the minimum," she says.

"The government haven't engaged with the people to discuss what they can do," she says. "Waiting until September is silly really, I dread to think how many people are getting anxiety and more stress in their life than they need to."

"Having a plan in place will help so many people, would definitely put my mind at rest."

Consumer journalist Martin Lewis says the country is facing a crisis on the scale of the coronavirus pandemic which could leave "millions destitute and in danger”.

He says the government needs to urgently “put more money into people’s pockets” to help them cope with the sharp rise in energy bills coming this autumn.

The price cap is expected to rise by 81% in October before an additional 19% increase in January, which would take average household energy bills to £4,266 per year.

This morning Lewis, who founded the Money Saving Expert website, told BBC Radio 4’s Today programme that direct support from government would be the only way to prevent “the terrible, cataclysmic risk that millions of people in our nation face this winter”.

He likened the current situation to the start of the pandemic, saying: "We are currently in that position where we are watching the beds in European hospitals and doing nothing about it.”

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Ministers will hold talks with energy giants on Thursday to discuss measures to ease the cost of living.

Chancellor Nadhim Zahawi and Business Secretary Kwasi Kwarteng will meet bosses to discuss rising prices and the sector's profits.

As we've been reporting, concerns over what will happen this winter come as figures suggest many households are already in energy debt.

Forecasts predict average annual energy bills could rise to over £4,200 by January - almost half the basic state pension of £9,628 this year.

In May, the government introduced a 25% windfall tax on oil and gas producers' profits. This helped fund a £16bn package of support for households.

Tory minister James Cleverley said the windfall tax was being kept under review and the government would haul in the leaders of the energy companies to "hold them to account" for the profits they were making.

Read our full story here.

Separately from the £400 energy discount, a £650 payment is to be made to more than eight million low-income households who receive the following benefits:

• universal credit
• income-based jobseekers allowance
• income-related employment and support allowance,
• income support
• working tax credit
• child tax credit
• pension credit

This will come in two instalments. The first, of £326 will have been paid for most people between 14 and 31 July. The second, of £324, will be paid in the autumn.

Those on tax credits will have to wait longer, as their first payment will be in the autumn and the second instalment during the winter.

The money is to be paid automatically into bank accounts - usually marked "DWP Cost of Living".

To be eligible for the first instalment, people must have been entitled to their benefits payments by 25 May.

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All UK households will get a grant which will reduce energy bills by £400 from October.

Initially, this was designed to be a £200 reduction paid back in instalments over five years. Now, the discount has been doubled and there is no requirement to repay.

In other words, from October, everyone's energy bill will be reduced by £400. This will be applied in monthly instalments over six months, with a reduction of £66 in October and November, and of £67 a month from December to March 2023.

The discount will be made automatically by your energy supplier. There is no need to apply.

Direct debit and credit customers will have the money credited to their account. Customers with pre-payment meters will have the money applied to their meter or paid via a voucher.

Many households are falling behind on energy payments with total debt owed three times higher than in September last year, a survey has suggested.

Almost a quarter of households owe £206 on average, according to comparison site Uswitch, which surveyed 2,000 consumers.

Uswitch advised people falling into debt to speak to their provider to work out a more affordable payment plan.

The government said it had "continually taken action to help households" with rising costs.

The data comes as consultancy Cornwall Insight warned energy bills could rise even higher than thought in October.

The consultancy also expects bills to increase much more sharply again in January, with the average household paying £355 a month, instead of £164 a month currently.

Read more here.

The government's assistance package for rising energy bills "was right previously" but "clearly it’s not sufficient now", CEO and founder of Octopus Energy Greg Jackson tells BBC Radio 4's Today programme.

Jackson says the expected cost of energy bills this winter might be at least £500 more than previously thought and "so that gives an idea of the extra support that’s needed". The government's £16bn assistance package, he says, will not be enough to support households across the UK.

Rising energy bills must be "the absolute top item in the in-tray of an incoming prime minister", he adds.

It’s just weeks until the next energy price cap rise is announced, and people already struggling with bills are facing even higher costs.

Ministers and energy bosses are set to meet tomorrow as analysts say the average household bill will reach £4,200 a year by January.

Meanwhile, the boss of Octopus Energy has told BBC News that households won't be able to cope with upcoming costs, warning that the government support announced so far is insufficient.

Stay with us as we bring you the latest updates on the spiralling cost of living, as well as analysis and explanation from the BBC’s experts.