Chancellor Nadhim Zahawi believes the next prime minister can “hit the ground running” to help hard-pressed families, as the latest warning suggested energy bills could top nearly £5,300 by the spring.
Mr Zahawi insisted his officials in the Treasury are “looking at all the options” for additional help this winter to ensure either Liz Truss or Rishi Sunak have the necessary information to take decisions from September 5.
Work and Pensions Secretary Therese Coffey also sought to downplay fears over energy prices, claiming they will be “nothing near” the forecasts.
Auxilione’s forecast released on Friday predicted the price cap on energy bills could reach £3,628 in October, from £1,971 today. They add it could then rise again to £4,538 in January and peak at £5,277 in April.
The worst forecast yet comes just 24 hours after Auxilione said regulator Ofgem could be forced to raise the price cap for the average household to £5,038 from next April.
Increases to the price of gas and electricity on wholesale markets are worsening the predicted rises for the cap, but they will fall if energy prices decrease.
Mr Zahawi told Sky News: “My message to families today is: we will have those options ready to go.
“Yesterday I met with the industry to look at what more we can do with the industry on direct debit, on pre-payment meters, all the things that families are worried about, we’re making sure we’re doing the work so on September 5 the new prime minister can hit the ground running and get those things into place.”
Asked if extra direct grants to families this winter are inevitable, Mr Zahawi said: “We’re looking at all the options of what additional help we can deliver for families to get them through the winter – £37 billion, we’re midway through that actual delivery.”
Mr Zahawi, questioned about the future of the energy price cap amid concerns it is not protecting consumers, said: “It continues to help protect consumers, but the reason I brought the industry in yesterday was to look at where there is market