Rishi Sunak today announced plans to “take the sting out” of the £693 hike to typical energy bills when the price cap is raised in April.

On Thursday morning, Ofgem announced that the new energy bill price cap will rise by 54 per cent per cent from April.

It means energy prices will rise by £693 a year for millions of households after regulator Ofgem hiked the price cap on bills to £1,971.

The Chancellor told MPs in commons that all households will get £200 off their energy bills from October, which will be paid back in higher bills over the next five years.

Households in council tax bands A to D will also receive a £150 rebate from April, a £3.6 billion measure that will not be paid back on bills.

Mr Sunak said the Government has to “step in” to help families manage the “incredibly tough” spike in costs driven by wholesale gas hikes.

St Helens Star: Energy price cap default tariff. (PA)Energy price cap default tariff. (PA)

How do I check what council tax band I’m in?

While £200 grants will be made available in the UK, those eligible in England will get a £150 discount on their council tax bill in April, which they will not have to pay back.

To find out if your household is eligible, you can check your council tax band via the government website.