Around 1.7 million households face the prospect of homelessness this winter as energy bills surge, charity Crisis has warned.

Crisis’ analysis found the lowest income households, defined as those earning an average of £12,650, could find their outgoings exceed their monthly incomes by a third if the energy cap reaches £4,500.

On Friday, Ofgem confirmed the average energy bill will rise by £1,578 per year from October, due to a rise in the energy price cap to £3,549.

Energy bills will be a major factor in driving outgoings higher, but rising grocery bills and rents will also play a role.

The charity warned that hundreds of thousands of low income households and individuals could be on the brink of homelessness or destitution in the worse case scenario.

The analysis also found that households who earn an average of £22,615 could spend 73% of their income on rent, energy and food bills. For those earning £31,728 and £37,773, this would equate to 59% and 55% respectively.

Matt Downie, chief executive of Crisis, explained: “People cannot simply be expected to cut back. You can’t cut back on the absolute basics required to survive. Families will be left completely destitute if help is not forthcoming.

“The government has already waited too long to provide reassurance to anxious households. They must act now to prevent soaring rates of homelessness becoming the tragic legacy of the turbulent economic times we are in.”