Millions of households across the UK could reportedly see a VAT cut on their energy bills as support for the measure builds up momentum.

In the past few weeks, the government was in “live discussions” with suppliers and the industry to find potential measures that could get the pressure of increasing bills off customers.

One of these temporary measures reportedly included scrapping VAT.

Sources claimed that “the option was firmly on the table” but decisions have not been made.

The announcement for additional measures could come as early as next week, just in time before 7th February when the new price cap is expected to be revealed.

Two weeks ago, the Prime Minister rejected calls to scrap VAT from energy bills as he mentioned that measure would end up having “a lot of people who perhaps don’t need the support”.

A government spokesperson told ELN: “We recognise people are facing pressures with the cost of living, which is why we are taking action worth more than £4.2 billion and supporting vulnerable households through initiatives such as the £500 million Household Support Fund and Warm Home Discount.

“The Energy Price Cap is currently insulating millions of consumers from high global gas prices. We’ll continue to listen to consumers and businesses on how to manage the costs of energy.”