Energy regulator Ofgem has announced that energy bills will rise by 4% from October, resulting in the typical household’s costs rising to £1,723 a year.

Fuel poverty charity National Energy Action (NEA) is warning that a three-year high for energy prices eclipses the VAT cut on electricity, dwarfs the financial support available to low-income households and will be a hammer blow heading into winter.

According to NEA, millions of low-income and vulnerable households will plunge deeper into debt, which currently stands at £6 billion, and has grown every quarter since autumn 2022.

Adam Scorer, NEA Chief Executive, said: “Cooling homes in summer and warming homes in winter ³ makes the world of difference. Rising energy prices heading into winter will plunge people into despair and place millions at risk.

“Today, Ofgem announces that prices will hit a three-year high. The rise in gas prices is especially concerning with over seven in 10 fuel poor households heating their homes with gas.⁴

“People will have to retread this dreadful and familiar path. They will be forced not to heat their foods, not to cook hot food, ration washing their clothes and going to bed at dusk.

“The new government has the same challenges as the last. It needs to strengthen targeted winter bill support through a tiered Warm Homes Discount model of the sort proposed this week by Energy UK and it needs to move quickly to establish a Debt Relief Scheme.

“Establishing a breathing space for people struggling with the cost of essential services is hugely important. This is the litmus test.”