Downing Street Chief of Staff Steve Barclay arrives at 10 Downing Street, in London, Britain May 25, 2022. REUTERS/John Sibley

LONDON, May 26 (Reuters) – Britain must pay for increased support to households in a way that does not deter investment, Cabinet Office minister Steve Barclay said on Thursday ahead of an expected announcement of new measures to cope with rising energy bills.

“In terms of paying for that, as we look at the balance between how much is done through debt, and how much is done through revenue raising, we need to do that in a way that doesn’t deter investment,” Barclay told Sky News.

Later on Thursday, finance minister Rishi Sunak will set out more details of the government’s response to the growing cost-of-living pressures facing households. read more

This is expected to include a 10 billion pound ($12.6 billion) package of support, an energy industry source said, funded in part by a windfall tax on oil and gas producers companies.

Barclay said the government had decided to act after an announcement by the energy regulator earlier this week that a cap on gas and electricity bills was set to rise by another 40% in October. read more

Reporting by Muvija M, writing by William James, editing by Elizabeth Piper

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