Ofgem has confirmed that the energy price cap will rise by 6.4 per cent on April 1, from £1,738 to £1,849 for the average household in England, Wales and Scotland.

This comes as a cost of living blow to millions of families as analysts had previously estimated the price cap to increase by around five per cent with energy bills now expected to be more expensive.

Last week, Cornwall Insights projected the typical annual household energy bill will rise by about £85 to £1,823 but Ofgem's announcement came in noticeably higher.

The expected rise is because of an increase in gas prices across Europe, caused by a slump in the amount of gas that is held in storage across the continent.

The energy price cap sets a maximum price that energy companies can charge people in England, Scotland and Wales for each unit of energy they use.

Ofgem's energy price cap has risen higher than expectedGETTY