Millions of households on brink amid fears of 40% rise

ENERGY

A quarter of all British households could be on the brink of fuel poverty - defined as when energy bills account for more than 10 per cent of income - a charity has warned.

Amid speculation that bills for gas and electricity could rise by 40 per cent over the winter months, Jenny Saunders, chief executive of National Energy Action, warned: "If prices do go up at that rate, then we will be in a very dangerous place and the scale of the problem would be as bad as it has been for a very long time.

"Millions of people are struggling to heat their homes to adequate levels. Many of these are the most vulnerable in society - low-income families, the elderly and people with a disability."

The warning of a sharp rise in energy bills came from industry sources, according to a report carried by the BBC. The 40 per cent figure is the highest estimate to date and would mean household energy bills climbing to 1,467, based on figures from uSwitch, the price- comparison service.

"The days of cheap energy are over," said Ann Robinson, director of consumer policy at uSwitch.

British Gas said last month that domestic gas prices could go up this year, on the back of rising wholesale prices. The cost of wholesale gas is linked to the price of oil, currently running at a record high.

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