The biggest ever surge in energy bills for 22 million households is set to be announced today - with a Mirror survey revealing a £30 a month jump would plunge one in four into crisis.
Energy regulator Ofgem will make a major announcement on April’s rise in its price cap at 11am, after bringing it forward from next Monday.
In a possible double whammy for cost of living hit households, the Bank of England will also announce at midday whether to hike interest rates - pushing up mortgage repayments.
After weeks of pressure on Boris Johnson, his Chancellor will make an announcement today on help for bills for the poorest households.
It's thought Rishi Sunak is preparing a two-pronged approach - a council tax rebate for households in the cheapest Bands A to C, and a £200 rebate for all households, paid by energy bills by funded by state-backed loans.
But with the price cap set to add £600 to the £1,277 annual average energy bill from April 1, it's likely not to be enough to cancel out the rise.
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 could also be 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.
Chancellor Rishi Sunak will give a statement to Parliament after 11.30am, followed by a 5pm press conference.
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 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, average 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.
“Our data has reached red alert levels.”
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.
“Consumers will still be paying huge sums, if not now, later. The misery of high bills will now drag on for years.”
Emma Pinchbeck, chief executive of trade body Energy UK, said: “Suppliers have been providing hundreds of millions in pounds in financial assistance since the start of the pandemic and will continue to do all they can to help customers struggling with their bills.
“When international gas prices are this high, there is a need for Government to act, as other Governments already have, to make a real difference to bills and to protect the wider economy”.
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.”
