The business reporter is from the British Broadcasting Corporation.

smart reader in foreground, woman out of focus at desk in backgroundImage source, Getty Images
Image caption, The price cap is expected to go up again in October

According to a new forecast, the average domestic energy bill could reach more than 3,600 a year.

The average gas and electricity bill in England, Wales and Scotland could go up by hundreds of pounds in the New Year, according to Cornwall Insight.

A package of measures has been announced by the government.

Some people want more support for families.

In October 2021, the average energy bill was over $4000. In April 2022, the energy price cap increased to £2,000.

The price cap in England, Scotland and Wales is expected to increase again in October.

The average domestic customer is likely to pay between 3,358 and 3,616 a year from October to January.

It's much higher than what was predicted. A month ago, Cornwall Insight said a typical bill would increase to over $4,000 a year by the beginning of January.

The big leap was caused by rising wholesale gas prices and concerns over Russian supply, according to Dr. Craig Lowrey.

"However, while the rise in forecasts for October and January is a pressing concern, it is not only the level of the rises that makes these new forecasts so devastating."

The current level of household energy bills shows no sign of abating into the future.

While the government has pledged some support for October's energy rise, our cap forecast has increased by over 500 since the funding was proposed, and the £400 pledged will only scratch the surface of this problem.

The typical household should see an £800 increase in October, according to Ofgem.

BFY predicted last month that a typical energy bill could reach over $4,000 a year.

The energy price cap limits how much can be paid for each unit of energy.

Energy suppliers pay producers for electricity and gas

The war in Ukraine has caused this to rise sharply.

The UK's inflation rate is at the highest in 40 years and many families are facing soaring costs.

Martin Lewis warned last week that people would be "panicking" over their energy bills and that they would be desperate.

Many households are going to be in a difficult financial situation as a result.

More needs to be done to help the poor.

The Department for Business, Energy and Industrial Strategy can't control global gas prices, but they do have a plan to help vulnerable people.

The government announced last week how households in England, Scotland and Wales would be helped with rising fuel bills.

The money is part of the energy bill support scheme.

In October and November there will be a discount on energy bills, and in December and March there will be one.

How you pay your bill will affect the way money is received.

Couple looking at a billImage source, Getty Images

A £650 payment is one of the measures.

Payments to those on benefits began on July 14.

Cost of living support graphic
  • Money
  • Ofgem
  • Personal finance
  • Energy industry
  • Cost of living