The business secretary is reportedly at odds with Liz Truss over the issue of benefits rising with inflation.
The former Labour prime minister is the latest political heavyweight to weigh in on the row over the uprating of benefits.
There are reports the government is planning to cut benefits in real terms to pay for tax cuts for the wealthy.
The potential of a future Labour government – and not the current one – is spooking the markets, according to two lords.
It comes after Kwarteng, in his 'mini budget' on Friday, said the government’s energy relief package will cost £60bn over the first six months of the scheme.
He was also heckled by opposition MPs, with Labour accusing him of 'shamelessly shielding' rich bankers as millions struggle during the cost of living crisis.
Households have been given a lifeline after the government capped how much energy bills would be, but some could end up paying more than others.
Liz Truss has outlined her plan to deal with the energy bills crisis, capping costs at £2,500 a year for a typical household.
Liz Truss has announced price freeze later today, meaning some could be paying higher bills if they agreed to higher fixed rate tariffs.