It will come after energy regulator Ofgem is expected to announce an up to 50% rise in the energy price cap, due to soaring wholesale gas prices, meaning the average bill could hit £1,915 a year.

The price cap affects around 22 million households and will come into force on 1 April.

The chancellor is expected to announce plans for billions of pounds in state-backed loans, giving all households a £200 discount off their energy bills.

It would mean taxpayers underwriting loans to energy suppliers, with the suppliers passing the money on to households in the form of a rebate on bills.

Read more: What is the energy price cap and why will bills rise so sharply?

This is aimed at limiting the effect of price rises in April, but the money would be recouped from consumers in the following years so the loans could be paid back as energy prices fall.

Also on Thursday, the Bank of England is expected to raise interest rates from 0.25% to 0.5%, as forecasts show inflation is likely to remain high through the spring.

Inflation has already reached 5.4%, which is almost three times the Bank of England target.

The interest rates rise, which would mainly affect those on certain types of mortgages, would be the first back-to-back increase since June 2004.

Financial markets are pricing in four rises in 2022, which would mean rates hit 1.25% by the end of the year, with a further rise to almost 1.5% the following spring, the highest level since January 2009.

It comes as households await two more major cost increases in April - a rise in national insurance payments and a rise in council tax.

National insurance payments will increase by 1.25 percentage points to create a new health and social care levy.

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It had been reported that Prime Minister Boris Johnson, under pressure from some backbench Tories and facing growing anger over "partygate" revelations, was reconsidering the hike.

But he and Mr Sunak confirmed at the end of January that it would go ahead.

Mr Sunak is, however, expected to announce measures to limit the impact of the council tax rise.

The Times reported that he would confirm on Thursday that more than 15 million households in council tax bands A, B and C could be given rebates funded by government grants.

The Treasury did not deny the plans regarding energy bills and council tax.

Asked about the new support package, a Government spokeswoman said: "We recognise people are facing pressures with the cost of living, which is why we are providing support worth around £12 billion this financial year and next.

"We will provide an update in due course on further help for households across the UK to meet their energy costs in the face of rising global gas prices."