CHANCELLOR Nadhim Zahawi has urged households to cut back on their energy use, in a bid to tackle rising bills. 

The Conservative minister - who, along with wife Lana, has a sprawling property empire estimated to be worth £100 million - rejected claims that the government was frozen, unable to take any action until either Liz Truss or Rishi Sunak replaces Boris Johnson. 

He said the Treasury was preparing options for whichever candidate emerges as the winner of the Tory leadership contest.

On Friday morning, energy regulator Ofgem announced the price cap for an average household will rise to £3,549 a year in October, up from £1,791.

It is set to rise again in January and April next year. Some forecasts have suggested it could hit over £7,000.

The Chancellor told broadcasters help from the government was coming.

“We know that’s not enough. We’ve got to do more,” he added.

“We need to make sure that this isn’t a sticking plaster, that for the long term we continue to help the most vulnerable who have no cushion, and that’s what I’m determined to do.

“And we’re working up those options for both households and for business for the incoming prime minister on September 5 to take those decisions.

“So my message today is, we’ll get this £37 billion to people to help them for now, and then more will be coming because we know this will continue in January and, of course, on to April and next year and we have to remain resilient.”

Mr Zahawi added: “The reality is that we should all look at our energy consumption. It is a difficult time. There is war on our continent.

“Very few people anticipated war. Wars happen in far-flung places. It is now here with us. We have to remain resilient. My responsibility is to deliver that help.”

Mr Johnson, entering his final few days in office, said “extra cash” will come in September to help those most in need.

“There’s a pipeline of cash coming through over the next few months and through the autumn and the winter.

"But that is clearly now going to be augmented, increased, by extra cash that the Government is plainly going to be announcing in September,” he told broadcasters.

“What I don’t think what we should be doing is capping things for absolutely everybody, the richest households in the country,” Mr Johnson added.

“This will go on for a few months and it will go on over the winter.

“And it will be tough – and I’d be very clear about that – but in the end, we are also putting in the measures we need to ensure that we have the energy independence to get through this.”

Opposition politicians, industry regulator Ofgem and campaigners were all united on Friday in calling on the Government to intervene urgently.

The government was accused of being “missing in action” by the Labour leader, Keir Starmer.

He said: “You’ve got a prime minister who insisted on staying in office, recognises there’s a problem with energy prices, shrugs his shoulders and does nothing about it.

“You’ve got two leadership candidates who are fighting with each other about how appalling they have been in government, but neither has come up with any plan to deal with this problem. Unforgivable.”

The SNP’s Shadow Chancellor Alison Thewliss said people needed help now: "For far too long the UK government has been missing in action as calls for urgent support and intervention mount. People cannot wait for months in hope that help is coming - they need help now.

“It is vital that the UK government steps up and cancels the rise, recalls Parliament and delivers an emergency Budget without any further delay or excuse.”