Britain’s poorest households are expected to see a huge increase in their living costs when energy bills rise this autumn, leading economists have warned. The Institute for Fiscal Studies (IFS) said the fresh surge in gas and electricity bills expected in October could lead to average annual inflation rates of as high as 14% for the poorest tenth of households. The increase in the energy price cap to close to £2,800 is likely to hit poorer families disproportionately because a larger share of their total spending goes on energy. The IFS said the poorest tenth of households typically spend almost three times as much of their budgets on gas and electricity as the richest 10% do.' The Government has responded by announcing specific financial support for low-income households and pensioners, and wider support for all households to pay their energy bills, funded by a windfall tax on energy companies.