A bleak warning about the effect rising energy bills are going to have on people’s finances has been issued by a Watford charity which has already experienced a big increase in those wanting help with fuel debt problems.

Citizens Advice Watford has seen a 46 per cent increase in people seeking help with worries over paying their fuel bills and fears the rising cost is “going to be devastating for people’s finances”.

In February, energy regulator Ofgem announced the energy price cap will increase by 54 per cent from April 1, for approximately 22 million customers.

Chancellor Rishi Sunak has announced a £200 ‘rebate’ loan to be repaid over five years, coupled with a one-off £150 refund for council tax bands A-D.

However, with inflation forecast to hit seven per cent in April and only a below-inflation increase of 3.1 per cent in means tested benefits, these measures are likely to do little to help with rising bills.

The Resolution Foundation is predicting a ‘living standards catastrophe’, in which the poorest third of households will be spending at least 10 per cent of family budgets on energy bills alone.

Emma Burgham, chief officer at Citizens Advice Watford, said: “We know this is an extremely worrying time for many.

“Families are being squeezed from all sides by a cost of living crisis: high inflation, low benefit levels and soaring energy bills. With the loss of the £20 per week Universal Credit uplift, and increasing food costs, an increase of nearly £700 a year to energy bills this April is going to be devastating for people’s finances.”

Citizens Advice Watford welcomes the government support announced so far but says it does not go far enough.

The organisation is very worried about those on the lowest incomes. Advisers are already seeing people who are unable to cover the cost of basic essentials and are facing tough choices between heating and eating.

Emma said the service would like to see changes made to the benefits system to help low-income families through the crisis and target support to those who need it most.

Citizens Advice Watford can be contacted on www.cawatford.org.uk, by calling 0800 144 8848 or visiting their drop-in service in St Mary’s Churchyard off Watford High Street.