LONDON (AP) — Britain's energy regulator announced Thursday that a cap on energy prices is going up by a record 54% because of the soaring costs of wholesale natural gas, a change that will significantly burden millions of households already squeezed by rapidly climbing bills.

The Office of Gas and Electricity Markets, known as Ofgem, said the new price cap — the maximum amount that gas suppliers can charge customers — will rise by 693 pounds ($940) per year in most parts of the U.K. starting in April. That will cause the annual bill for the average customer to go up to 1,971 pounds.

The decision is likely to affect 22 million households across the country.

It adds to a cost-of-living crisis in the U.K., where food costs have been steadily rising and a tax increase is set to take effect in April. The Bank of England also is widely expected to raise interest rates again Thursday to combat rising consumer prices.

Later Thursday, the Treasury chief, Rishi Sunak, is expected to set out the government's plans to help millions of people — especially those on lower incomes — cope with soaring energy costs.

Government officials have been mulling what it can do to help people with their bills, and potential solutions have included loans to energy companies.