The Head of Economic think tanks warns that families could face a £1,200 hit as early as April. 

This impact level is due to the raise of energy price caps which are now at 1.25% and the increase of National Insurance tax. 

Plus, the added rising inflation means that real pay levels are stagnating as real wages next Chrismtas expect to be no higher than the current pay. 

Read More: Energy bills could rise by £700 for the average household, predictions suggest

Earlier this year the Bank of England announced they expect the inflation rate to hit 6% by spring 2022, seeing any benefits of the wage increase to fall flat. 

Think tank company, Resolution Foundation's chief executive Torsten Bell told BBC Radio 4’s Today programme: "If you think about the politics of this, energy prices and taxes are always big politics in Britain."

"The fact that two such big changes are coming on top of each other in April, at the same time as our wages aren’t rising that significantly because of higher inflation in general, I think means that this is going to be the dominant story once we come out of the bad but hopefully short-lived Omicron wave," he added.

The RF also said that the height of the "squeeze" is expected in April as the energy bills will rise by £500 a year whilst the cost of energy firm failures will add another £100 to consumer bills. 

Low-income families will be hit the most by the rise, as it is expected to account for 12% of the income of the poorest households compared to the 8.5% now. 

Whilst families who are in the top half of income, the increase of National Insurances would take bills up to £750.