Britons on salaries of £45,000 will need government help to pay their energy bills, not just people on benefits, the chancellor has warned.
Nadhim Zahawi also told the Daily Telegraph that households must try to reduce their energy consumption and that he fears gas prices could remain high for another two years.
Energy bills will rise for millions of families in the autumn after the price cap was raised to £3,549 a year – a record 80% rise.
All UK households are getting a £400 discount on their energy bills, but Tory leadership candidates Liz Truss and Rishi Sunak are being urged to take more action.
There has been debate about whether the extra support should be widely distributed or concentrated on those on the lowest incomes.
Mr Zahawi told the paper: “My concern is that there are people who are not getting benefits. If you’re a senior nurse or a senior teacher on £45,000 a year, your energy bills will go up by 80% and they will. It will probably increase even more in the new year; it’s very difficult.”
While universal credit was a “really effective way of targeting”, he said, other ideas were being explored “to make sure we help those who really need the help”.
Mr Zahawi is understood to have drawn up a number of options for the next prime minister to consider, and despite calls for urgent action from energy regulator Ofgem, Ms Truss has said it would not be “right” to announce his plans comprehensive to address the problem. the cost of living crisis until a new Tory leader is appointed on September 5.
The chancellor warned that the UK is “in a national economic emergency”, adding: “This could go on for 18 months, two years, if Putin continues to use energy as a weapon.”
Read more: Explainer: Everything you need to know about higher bills.
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4:53 How will energy prices affect homes?
Companies fear rising energy bills
In other news, 26% of small and medium-sized businesses surveyed by YouGov have warned that their energy bills will be unsustainable in 12 months.
Of the businesses that already pay more for gas and electricity, 75% said they will have to pass those costs on to their customers.
Five percent of businesses surveyed said their energy bills are no longer affordable.
Zahawi told The Telegraph that the government plans to offer support to small businesses and said there would be “a longer-term healing effect on the economy” without it.
Proposals could include reducing VAT for specific sectors, returning to a policy that was in place during the coronavirus pandemic.
Conservative MP Robert Halfon, a supporter of Sunak, admitted the situation was “bleak” for families and businesses.
He told Sky News on Saturday morning: “There’s a fish and chip shop in my constituency that has seen its takings drop by £5,000 a month, while its energy bills have gone up from £800 to £3,000 a month.
“My local GP surgery, their gas for the surgery is currently £10,000, rising to £24,000 a year. Clearly this is unsustainable.”
Halfon said he supports Sunak’s plans to give £1,200 to eight million vulnerable families, a £400 discount to all UK households and a cut in National Insurance for 70% of households.
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6:13 Why high energy bills affect everything
Politicians feel the heat
In total, around 24 million households will be affected by the price increase.
Rising wholesale gas costs, fueled by Russia’s invasion of Ukraine, have pushed up energy prices, which are expected to rise further next year, with forecasts that average bills hit £5,386 in January and £6,616 in April, according to the analysis. from Cornwall Insight.
It increases pressure on households already struggling with rising food and fuel prices.
Sky News has found that a third of households are already struggling to pay their energy bills, while Philippe Commaret, chief executive of energy giant EDF, says half of UK households could be in poverty energy in January.
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Ofgem chief executive Jonathan Brearley told Sky News the price cap will be “devastating news” for many people.
Putting the rise in context, he said: “When I look at winter prices now to buy gas, they’re 15 times what they normally are. If that happened to petrol, that would mean it would cost £400. £500 for fill up our car.”
Boris Johnson has stressed that he will leave major decisions on additional support to his successor.
Before the increase, leader Ms Truss said she would use an emergency budget to “ensure support is on the way” if she becomes prime minister.
Its rival, Sunak, has pledged more targeted support and to remove VAT from energy bills.
Labor has claimed that Mrs Truss’ plans to tackle the cost of living crisis would leave four million families “out in the cold” if only additional direct benefit support is handed out.