Ofgem is expected to let energy bills rise by a crippling 50 per cent for millions of households across the country, according to the latest expert analysis.
The energy regulator will confirm the increase on gas and electricity prices on Thursday at 11am, an announcement that energy consultancy Cornwall Insight said could impact around 22 million households with bills likely to hit £1,915 for the average user.
The rise will come into force from April 1, when the price cap on energy bills is updated for the next six months, with the next review scheduled to take place in October.
Chancellor Rishi Sunak will make an announcement to Parliament after the energy price cap has been confirmed outlining additional support measures to be put in place by the Treasury.
He will also give a televised press conference from Downing Street at 5pm.
According to the Times on Wednesday, Mr Sunak will commit to giving households in Council Tax bands A to C rebates funded by UK Government grants under targeted measures for those on a lower income or benefits.
Consumer champion, Martin Lewis, will be interviewing the Chancellor for The Money Show Live programme on Thursday night, asking him about the energy price cap and cost of living crisis.
The Treasury did not rule out the move nor did it deny that the Chancellor could announce state-backed loans for energy suppliers to give all homes across the UK a discount on their energy bills of £200.
Asked about the new support package, a UK Government spokeswoman said: “We recognise people are facing pressures with the cost of living, which is why we are providing support worth around £12 billion this financial year and next.
“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.”
Calls have been mounting for the UK Government to step in to protect households, especially the most vulnerable.
This would come alongside more targeted help, such as an expansion of the Warm Home Discount Scheme.
Also on Thursday, the Bank of England is widely expected to raise interest rates from 0.25% to 0.5% with its forecasts likely to show rampant inflation this spring.
How much will energy bills rise from April?
Ofgem will confirm the increase on Thursday morning, however, Cornwall Insight’s latest predictions, calculated using the most recent data, is a little lower than previous expectations, which had hit £1,995.
But it would still be a blow to households that are already under mounting cost of living pressures.
And Cornwall’s experts said they expect the cap to rise even further to £2,329 for six months from October.
However, this prediction is likely to change if Ofgem makes changes to how it calculates the price cap, which it is expected to do.
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