Charities are calling for government to take more action after Ofgem announced the energy price cap will rise by £693 in England, Wales and Scotland from April.

The increase will cause cause bills for the average customer to rise to £1,971, with those on prepaid rising by £708 to £2,107.

In response the Chancellor, Rishi Sunak, announced that the government would be giving all domestic electricity customers a £200 discount on their electricity bills from October and those in council tax bands A to D will be given a £150 council tax rebate in April.

The electricity bills discount will automatically be repaid from people’s bills in equal £40 instalments over the next five years.

There was also an expansion to the eligibility for the Warm Home Discount by almost a third, meaning an extra three million households will receive it.

But charities and thinktanks warned the government they need to go further.

A spokesperson for the End Fuel Poverty Coalition, commented: “Today’s catastrophic price cap rise will force hundreds of thousands more households into fuel poverty from April.

“The Government’s proposals for support will do little but offset or defer part of the most recent rise.

“The reality is that fuel poverty has been increasing at an exponential rate and only a full package to support people – especially the most vulnerable – will be sufficient in the short term.

“Longer term, the Government must come good on its promises to help transform housing into safe, warm, energy efficient homes.”

Katie Schmuecker, Deputy Director of Policy and Partnerships for the Joseph Rowntree Foundation said: “The Chancellor has offered cold comfort to families in poverty, who are already rationing what they can spend on essentials such as heating and food.

“These families are now expected to find at least half of the eye watering increases in energy bills, when many are already getting into debt to keep their houses warm and food on the table.

“Three quarters of those who can claim the enhanced support are not in poverty. Meanwhile inflation is set to rise at more than double the rate of benefits. This support will not get people through the next few months and it will not protect those most at risk of hardship.

“People in poverty are hit hardest by all these pressures because our social security system is simply not offering adequate support, and until that changes they will continue to be exposed to every economic shock.

“The Chancellor has made his choice, the harder choices will now be coming for those who still can’t afford essentials for themselves and their families.”