A surge in energy bills for 22 million households is set to be announced tomorrow - a £30 a month jump which would plunge one in four into crisis.
Energy regulator Ofgem today it is bringing forward an announcement on April’s rise in its price cap from next Monday.
In a possible double whammy for cost of living hit households, the Bank of England will also announce at midday tomorrow whether to hike interest rates, the Mirror reports.
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It came amid reports that Prime Minister Boris Johnson and Chancellor Rishi Sunak are poised to announce a multibillion-pound package of measures to ease the energy bill blow.
Reports say suppliers will be offered taxpayer-backed loans to knock around £200 off the more than £600 expected jump.
Suppliers would repay the loans at a later date but with the money recouped from customers over time, potentially years.
Targeted measures for poorer households are also expected, including an extension of the Warm Homes Discount.
But it is not thought the measures will be enough to prevent misery for millions of households.
A Deltapoll survey for the Mirror found the cost of living crisis was now the biggest concern for the public, overtaking Covid-19 for the first time since the start of the pandemic.
Meanwhile, an overwhelming 83% are worried about rising energy bills.
When asked, 9% of respondents said they were already in “extreme financial difficulties” - from not having enough money to buy food to missing rent or mortgage payments.
Just over a quarter say they would end up in this plight if their energy bill rose by up to £30 a month.
Forecasts in recent weeks have been that the price cap for those on standard and other default tariffs will rocket by 50%, from an average £1,277 to £1,915 a year.
The predicted £638 a year hike would equate to just over £53 a month.
In the Deltapoll research, more than half of respondents said they would end up in extreme financial difficulties if their energy bills rose by up to £50 a month.
The Mirror has heard from readers who have already seen their monthly direct debits jump by far more.
Some are because they came off fixed rate deals, or due to their energy supplier failing, and ending up on standard tariffs.
The scale of any increases will depend on what the government announces.
It is unclear if the reported £200 rebates would go to every household, vary by usage, come in one go, or be spread out.
There is also a possible £100 that could be shaved off the average bill by smoothing the impact from dozens of supplier collapses.
The cost would normally be added to all customers' bills over the next year.
However, Ofgem has consulted on banks or other lending suppliers about the funds, with the money repaid by customers over time.
But because the loans would incur interest, households could end up paying more in the end.
Ofgem could also use tomorrow to announce a shake-up of the price cap, so it is reviewed every three months, rather than twice a year as now.
Adam Scorer, chief executive of National Energy Action, was sceptical that the reported measures would work.
He said: “Their ‘heat now, pay later’ plan, in isolation, will not be sufficient to protect the most vulnerable customers.
“We need an 18-month plan to avert, not smooth, the crisis for the most vulnerable households in the UK.”
He said the measures being discussed were “a long, long way from being an adequate solution to avert a fuel poverty catastrophe.”
Experts say, as it stands, bills could jump to an average £2,300 in October.
Citizens Advice said it was seeing more people seeking one-to-one support now than at any point during the pandemic.
The charity warns that crisis support - including referrals to food banks and advice on emergency one-off grants - is at the highest level on record.
And advice on managing energy debts had reached unprecedented heights, it added.
Dame Clare Moriarty, chief executive of Citizens Advice, said: “Cost-of-living pressures are at boiling point.
“April’s price hikes haven’t yet hit and already people are turning to our services in record numbers.
“Frontline advisers are hearing desperate stories of families living in just one room to keep warm, people turning off their fridges to save money and others relying on hot water bottles instead of heating due to fears about mounting bills.
Joe Malinowski, founder of energy price comparison website TheEnergyShop.com, said: “The energy price cap has already bankrupted over half of all energy suppliers in the market.
“Now it is set to bankrupt the consumer.”
Mike Foster chief executive of the Energy and Utilities Alliance, said: “The scale of the energy price cap increase is shocking.
“Millions more households will now be thrown into fuel poverty, through no fault of their own.
“The proposed loan to energy companies to keep bills £200 lower now, but to be paid back later, is a cheap stunt.
A Government spokesperson said: “We recognise people are facing pressures with the cost of living, which is why we are providing support worth around £12billion this financial year and next.
“We are supporting vulnerable households through initiatives such as the £500million Household Support Fund and Warm Home Discount and will continue to listen to consumers and businesses on how to manage the costs of energy.
“We will provide an update in due course on further help for households across the UK to meet their energy costs in the face of rising global gas prices.”
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