Energy bills could rise to a shocking £4,000 next year, according to the latest analysis from energy consultants – pushing half of all British people into fuel poverty.

According to data from the Office for National Statistics, the energy price cap rose in October 2021 causing consumer prices for gas and electricity to rise by 17.1% and 8.7% respectively.

Currently, 12-month inflation rates for gas and electricity are at their highest since the beginning of 2009, with gas at 28.1% and electricity at 18.8%.

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Utilities consultancy BFY Group said it expects the cap on bills to hit £3,850 between January and April next year.

Fuel poverty in the UK happens when a household spends more than 10 per cent of its income on energy.

Adam Jones, senior manager at BFY Group, has said that the winter 2022 gas price has risen nearly 10-fold since this time last year.

The Northern Echo: Half of Brits could be left in fuel poverty with the rises. Picture: PA MEDIA Half of Brits could be left in fuel poverty with the rises. Picture: PA MEDIA

"Following further rises in wholesale prices as flows of gas from Russia to Europe via the Nord Stream 1 pipeline drop to 20% of capacity, we now forecast the Ofgem price cap to rise to £3,420 in the fourth quarter of 2022 and £3,850 in the first quarter of 2023," Dr Gemma Berwick, a senior consultant at BFY Group said.

"This will make the average household bill over £500 for January alone."

Meanwhile, an urgent package of support to help households cope with soaring energy bills should be thrashed out by Boris Johnson, Rishi Sunak and Liz Truss, a consumer champion has demanded.

The Northern Echo: The government has been urged to help households with rising energy bills. Picture: PA MEDIAThe government has been urged to help households with rising energy bills. Picture: PA MEDIA (Image: PA MEDIA)

Money Saving Expert’s Martin Lewis said the “zombie government” must not wait until the conclusion of the Tory leadership contest to decide on help for households who will face the energy price cap rising to £3,500 or more.

He dismissed the extra help promised by Mr Sunak and Ms Truss during their leadership bids as “trivial” in the face of bills which are set to be £2,300 a year higher than they were last October.

“I’ve never seen anything like this,” he said.

“It’s going to throw many households into a terribly difficult financial situation that will leave them making some awful choices.”

He told BBC Radio 4’s Today programme the data that informs the price cap suggested it would increase 77% on top of a 52% rise in April, taking the typical bill to £3,500 a year.

“Others say it will be higher,” he warned.

“We are expecting it to rise again in January.”

Mr Lewis said the choice facing the Government was “you either have to cut prices for people or you have to put more money in their pockets, especially at the poorest level”.

But he added: “The problem is we have this zombie government at the moment that can’t make any big decisions.”

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