The cost of energy is set to soar, with up to 15 million households warned to expect higher gas and electric bills this year.
Bills could see a hike of as much as £139 from October this year.
The rise is down to an increase in wholesale energy prices, according to energy regulator Ofgem.
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Coming just before winter hits, and with many people still incurring extra costs due to working from home, the price rise is likely to have a significant impact on many.
Jonathan Brearley, chief executive of Ofgem, said: “Higher energy bills are never welcome and the timing and size of this increase will be particularly difficult for many families still struggling with the impact of the pandemic.
“The price cap means suppliers only pass on legitimate costs of supplying energy and cannot charge more than the level of the price cap, although they can charge less.
“If you’re struggling to pay your bill you can get in touch with your supplier to access the help that’s available and, if possible, shop around for a better deal.
“I appreciate this is extremely difficult news for many people, my commitment to customers is that Ofgem will continue to do everything we can to ensure they are protected this winter, especially those in vulnerable circumstances.”
Meanwhile, there are warnings that, with Universal Credit payments being reduced in September, the price hike could be devastating for some families.
Responding to the price rise, James Plunkett of Citizens Advice said: “This price hike could lead to a perfect storm for families this autumn, hitting people at the same time as a Universal Credit cut and the end of furlough. It’s particularly worrying given families on Universal Credit are far more likely to already be in energy debt.
“With bills rising and incomes falling, many families will find it hard to escape. For many, debt will be the inevitable consequence.
“It all adds to the growing case to rethink the government’s planned cut to Universal Credit and keep this lifeline which has been vital to keeping so many afloat.”
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