Energy tariffs will rise from October 1: how to save on utility bills.

More than 12.1 million households are struggling with energy costs and cannot afford price increases tomorrow, activists warn.

According to The Sun: Two-fifths of households are currently facing difficulties paying energy bills and are spending more than 10% of their income on gas and electricity, according to a study by the University of York.

Of this group, nearly 5 million spend more than 20% of their income on energy, meaning they are living in energy poverty.

The news comes ahead of the announcement of a new energy tariff that will be revealed tomorrow.

The industry regulator Ofgem is changing the tariff for households quarterly, based largely on energy costs in wholesale markets.

Energy bills are known to rise from £1,720 a year to £1,737 a year tomorrow – which is an increase of 1%, according to forecasts from Cornwall Insight.

But activists have warned that even a 1% rise in energy bills will only further pressure households that are already struggling to make ends meet.

Figures also show areas where families will be most affected if the tariff rises.

Northern Ireland and the West Midlands have the highest poverty rates, followed by Scotland and the North East.

In comparison, the lowest rates are in Wales, the South West, and East Anglia.

Meanwhile, households with children are more likely to already be struggling with energy costs, as are people renting their homes.

Unfortunately, 3.2 million of those in energy poverty are pensioner households.

Of these, 964,000 are in deep energy poverty, meaning they spend more than 20% of their income on energy.

The borrowing of households in the energy sector amounts to a record £4.15 billion

Simon Francis, coordinator of the Anti-Energy Poverty Coalition, said: 'We are approaching the fifth winter of the energy bill crisis and the time to twist the regulatory spring on tariffs has run out.

'Ofgem wisely launched a comprehensive analysis of how costs in the energy system are distributed, but simply shifting budgets between unit-based charges and tariffs will not solve the problem.'

Help with Energy Bills

If you are struggling with energy bills, there is a lot of support available.

For example, the Winter Fuel Payment provides £300 to pensioners to help cover heating costs during the colder months.

A study found that more than 12 million households in the UK are struggling to pay energy bills, and price increases could worsen this situation. The regulator is preparing for new price changes that could add pressure to already struggling families, particularly pensioner households. Activists are calling for more radical steps to tackle the issues of energy poverty.