Britain’s biggest energy retailers have told ministers they will provide more than £500 million in extra help for households as the government tries to fend off criticism over the winter fuel payments row.

Sky News understands industry body EnergyUK plans to make a joint announcement with the Department for Energy Security and Net Zero (DESNZ) about a sector-wide support package in the coming days.

Sources said this could be announced by Rachel Reeves as part of the inaugural budget next week.

They added that the additional figure of over £500 million would include both reimbursable and non-reimbursable measures, such as temporary payment cuts to consumers.

They said the package would cover the period between this month and next April.

Insiders said the announcement was partly aimed at clearing up controversy over the chancellor’s decision to scrap the universal Winter Fuel Payment for pensioners.

The government and EnergyUK are not expected to allocate more than £500 million on a supplier-by-supplier basis.

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On Saturday, a government spokesman said: “We will do everything possible to support vulnerable families this winter – including the £150 Warm Homes Discount, which is expected to support three million eligible households, and our drive to increase Pension Credit, which has already seen a 152% increase in claims.” .

“Minister (for energy consumers Miatta) Fahnbulleh has been continuing to meet with energy suppliers since August to agree on a reliable and robust plan that puts vulnerable people squarely at the centre.

“We look forward to providing further details on this plan in due course.”

EnergyUK did not respond to three emailed requests for comment.