Chancellor Rishi Sunak has announced a raft of support schemes aimed at easing the pressure on millions of households facing soaring living costs.
Labour, however, has slammed the offerings as "giving with one hand and taking it back later".
Ofgem has today announced the energy price cap is to rise by 54% because of soaring wholesale gas prices, meaning the average bill will rise by £693.
READ MORE: Energy bills to rise by £693 as new price cap confirmed
Mr Sunak said the Government will act to "help people manage extra costs".
Plans set out include a £200 loan that will give all domestic electricity customers an upfront discount on energy bills.
This will be automatically repaid from people's bills in equal £40 instalments over next five years.
The "discount" will ensure the Government is "not just giving support to people on benefits, as lots of people on middle incomes are struggling right now too".
Around 80% of homes in England will benefit from a council tax rebate, with all living in bands A-D impacted.
Local authorities will be provided with a discretionary fund of nearly £150 million - which is around £450,000 per council if divided equally.
Mr Sunak also said the Government will "go ahead with existing plans to expand eligibility for the Warm Home Discount scheme, so three million households will benefit".
Labour had suggested a VAT cut on all energy bills, but this is not to happen.
Explaining why, Mr Sunak said: "A VAT cut would disproportionately benefit wealthier households and there are no guarantee suppliers would pass on the discount to all customers.
"It would become a permanent government subsidy on everyone's bills, worth £2bn every year at a time when we are trying to rebuild the country's finances".
Shadow Chancellor Rachel Reeves has slammed the plans as not being good enough, and said that people "in the north and the midlands" will lose out.
Ms Reeves said: "In October I called on the government to provide immediate support for those who need it most. The government has not done that today.
"Families in Britain will still pay hundreds of pounds more including some poorest families from April.
"What does the government offer? A buy now pay later scheme that loads up costs for tomorrow.
"High prices as far as they eye can see. Give with one hand and take it all back later."
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