Millions of households are to be given an extra £900 to help them cope with the ongoing cost of living crisis - with the first payment due to arrive in just a few months.

But with household energy bills expected to rise by an average £500 this year - and the government's cap on prices and extra monthly help ending - charities are warning the additional cash won't be enough.

Last year millions of low income households, receiving universal credit and other means tested benefits, were sent £650 in extra help that was split between two lump sums in July and November.

With gas and electric bills scheduled to rise again in April, when the government's freeze on energy prices ends, ministers have now unveiled plans to increase the support for poorer households to £900 with additional money for pensioners and the disabled.

The cash - which won't need paying back - will be sent directly to bank accounts in three payments over the course of the next financial year - with £301 arriving in the spring, followed by another £300 boost later this autumn ahead of a final £299 lump sum in spring 2024.

On top of this will be an additional £150 disability payment released this summer alongside £300 for pensioners next winter on top of their winter fuel payments. If individuals are eligible they will be paid automatically, and there will be no need to apply.

But with energy bills facing a 20% rise in a few months time - just as the £400 energy bills discount scheme comes to an end that has given all households extra credit on bills this winter - charities fear outgoings are racing ahead of the money homes have coming in.

A spokesperson for the End Fuel Poverty Coalition explained: "This winter we have seen over nine million adults living in Dickensian conditions in cold damp homes. Yet despite energy bills increasing by 20% from April 2023, the support for the most vulnerable announced by the Government has not increased from last year.

"In short, bills are going up, support is going down and households will be worse off than they were this winter. While we support the principle of prioritising support for those who need it the most, the Government must go further to help the millions of homes in fuel poverty throughout 2023."