A senior minister has ruled out an emergency Budget to ease the cost of living crisis - despite Boris Johnson hinting at help for struggling Brits.
Levelling Up Secretary Michael Gove said there won't be a crisis statement from Chancellor Rishi Sunak but insisted ministers would do more to help hard-up families.
Households are facing rocketing energy bills, inflation is forecast to hit 10% and benefits and wages failing to keep up with the increase in prices.
The Prime Minister suggested the Government was poised to unveil emergency cost of living help shortly during a Queen's Speech debate on Tuesday.
He told the Commons that he and the Chancellor would be "saying more" about help for households under strain "in the days to come".
But Treasury sources immediately distanced Mr Sunak from the idea - and Mr Gove was sent out on the airwaves to say the PM's offer of help had been "over interpreted".
Asked if there would be an emergency budget, he told Sky News: "There won't be an emergency Budget.
"It's sometimes the case that words of the Prime Minister or a minister are over interpreted.
"The PM is right, we will be saying more, doing more in order to help people with cost of living challenges they're facing.
"But that doesn't have to be an emergency Budget. It's part of the work of Government.
"Last night the Prime Minister convened a group of ministers - we have all done work on some of the things we could do to help. Those policy initiatives will be announced by individual departments in due course as they are worked up.
"It is part of the process for a Government that is always and everywhere thinking of how we can help and how we can provide support, both short term and long term."
He also downplayed claims of a split between Mr Johnson and Mr Sunak over the need for an emergency budget were "overinflated".
Mr Gove told BBC Breakfast: "It is an example of some commentators chasing their own tails and trying to take a statement that is common-sensical, turning it into a 'major' capital letters 'big news story'.
"When the Treasury quite rightly say 'calm down', people instead of recognising that they have overinflated the story in the first place then say 'Oh, this is clearly a split'.
"The truth is the Prime Minister says 'Government is working hard' and the Treasury say 'Yes we are and I'm afraid the Budget is going to be when we said it would be'. That becomes a story? No."
It comes after Welsh Secretary Simon Hart heightened speculation of more help after saying the cost-of-living crisis was "now the most important challenge" in Britain and the Cabinet would be discussing how to solve it this week.
He told TalkTv: "You will hear more probably on Thursday after the Cabinet has met.
"This is now the most important challenge facing not only this nation, but many other nations as well.
"This is the thing which is going to be occupying every waking hour of every politician."
Downing Street said Boris Johnson has urged ministers to be "as creative as possible" in coming up with plans to help hard-up families.
The Government's new cost of living committee met on Tuesday following the Queen's Speech after the PM urged top Tories to come up with plans to save cash - without more funding.
"You can expect there to be more work done off the back of that discussion. The Prime Minister urged ministers to go faster and be as creative as possible in ensuring the Government is doing everything on this important issue," the PM's spokesman said.
"You can expect the committee to meet fairly regularly to progress the work as soon as possible.
"In the days to come you will hear more from the Prime Minister on this. The Chancellor and the Prime Minister are working extremely closely on this and will continue to do so."
Shadow Health Secretary Wes Streeting tweeted: "Talk is cheap. Tory tax rises are expensive.
"A little less conversation a little more action please."
Lib Dem Treasury Spokesperson Christine Jardine branded the situation a "complete shambles".
She said: "Millions of families and pensioners are struggling to get by. They need more help now before things get even worse in the autumn.
"Instead all we get from this Conservative government is chaos and confusion.
"An emergency budget is needed now to cut taxes for ordinary families while taxing the super profits of oil and gas companies."
