British Gas to increase bills by 20 per cent for households

British Gas is poised to send energy bills soaring by up to 20 per cent within days, the Standard has learned.

The move by the country's biggest energy supplier would pile more financial pressure on households already suffering from the burden of higher taxes, rising food and transport costs and lower benefits.

Analysts believe that British Gas will put up its gas tariff by 20 per cent and electricity by nine per cent, increasing a typical annual bill from £1,096 to £1,270 - more than £100 a month.

Audrey Gallacher, of Consumer Focus, said: "Hundreds of thousands of people will be pushed into fuel poverty." The expected rise will follow that of rival energy giant Scottish Power, whose gas and electricity prices will increase by 19 per cent and 10 per cent.

With a minimum 30 days' notice to customers required by law the rises would come into effect just before the autumn starts. Both firms have blamed the rise in bills on sharply higher wholesale gas prices. Centrica, owner of British Gas, said its customers were not paying enough to reflect the increased cost of gas on the international markets.

The increase will hit households' already-diminished spending power and economists warned it could damage prospects for the recovering British economy. Official statistics published last week showed that households' disposable income fell 2.7 per cent in the first three months of this year over the previous year.