Rishi Sunak has been accused of blocking plans to more than double the £200 energy bills “rebate”.
All households will get a £200 discount off their bills in October which then has to be repaid over five years.
A leaked document now shows an official suggested “we could boost the recently announced rebate scheme”.
That could include “increase the amount of the rebate e.g. from £200 to £500 or more - either for all or just for fuel poor households”, said the paper obtained by the i newspaper.
It’s understood the document was from a Business Department official who was asked for options on what more the government could do, and was never formally tabled.
But the idea has not so far been announced by the Tory Chancellor, despite announcing tax cuts in his Spring Statement.
The leaked document also suggested the government could delay the point at which the rebate has to be repaid.
It could also extend the repayment period, or exclude the poorest from having to repay the cash, the document said.
Critics say the £200 does not touch the sides of this month’s £693-a-year hike in energy bills - let alone another rise expected on October 1.
Furious billpayers have also complained it is a loan that they never signed up to.
It is understood the idea of raising the rebate beyond £200 is not dead forever, as the official had been asked for their ideas for the run-up to another energy bills spike on October 1.
That is still nearly six months away, and the Treasury has not ruled out further help.
But Boris Johnson warned yesterday: “We've got to be frank with people, there's a limit to the amount of taxpayers' money we can simply push towards trying to deal with global energy price spikes.”
A Government spokesperson said: “We understand that people are struggling with the rising cost of living – we can’t shield everyone from the global challenges we face but we’re putting billions of pounds back into the pockets of hard-working families across the UK.
“We are taking action worth over £22 billion next financial year to help people with the cost of their energy bills and to ensure people keep more of their money, including increasing the National Insurance thresholds saving a typical employee over £330 a year, boosting incomes by £1,000 for an average full-time worker by increasing the National Living Wage and helping low-income families keep more of what they earn by reducing the Universal Credit taper rate.
“We have set out a bold energy strategy that will reduce our dependence on power sources exposed to volatile international prices, meaning we can enjoy greater self-sufficiency with cheaper bills.”
