The government will extend the energy price guarantee at current levels by another three months in Wednesday’s budget to boost growth.
Typical household energy bills should rise to £3,000 a year from April, but instead the cap will be kept at £2,500 until the end of June.
The chancellor is later to present a more comprehensive plan for economic growth.
UK economic growth has leveled off in recent months and the Bank of England expects a recession to begin this year.
Chancellor Jeremy Hunt said: “High energy bills are one of the biggest concerns for families, which is why we are keeping the Energy Price Guarantee at its current level.
“With energy bills set to come down from July, this temporary change will close the gap and ease pressure on families while helping bring down inflation.”
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