Families in colder areas of the country may receive more government financial support for heating costs this winter.
The Treasury is reportedly mulling giving more cash to areas that are forced to use heating more, as energy bills have skyrocketed in recent months.
The idea is being considered ahead of a package of measures to tackle the cost of living crisis, the Telegraph newspaper has reported.
These measures are anticipated to be revealed alongside a review of energy regulator Ofgem’s fuel price cap in February.
The report comes after the Chancellor has met with Conservative backbenchers this week to float different ideas on how to help vulnerable families this winter.
MPs expressed concerns that slashing the rate of VAT on energy would give a tax break to richer families instead of focusing support on those in dire need.
Rishi Sunak reportedly told MPs he was considering heftier cash injections for households in colder areas, meaning the North of England would receive higher payments.
An existing cold weather payment provides some benefit claimants with £25 for every seven-day period in which the temperature drops below zero degrees Celsius.
The Treasury is also reportedly considering increasing the amount provided to pensioners in the winter fuel payment and slashing the green tax individuals pay to fund investment in renewable energy sources.
The reports come as one of the country’s largest energy providers has apologised after urging customers to do star jumps, cuddle pets and eat porridge to cut down energy bills and stay warm.
Ovo energy said it was “embarrassed” by a blog post that gave customers tips on how to stay warm without turning up the heating.
The energy firm, which is one of the UK’s largest suppliers, said it was “embarrassed” by the blog, which offered 10 tips on “keeping warming in the winter without turning up the heating”.
Energy bills are anticipated to increase significantly in April, following Ofgem’s update.
There have been predictions of a potential 56 per cent increase, raising the annual cost of average usage from £1,277 to £,2000.