Energy bills forecast to remain above £2,000 in blow to Sunak’s loan scheme

Analysts warn that prices will stay higher for longer, adding pressure to struggling households

Energy bills will stay well above 2,000 for two more years, according to leading analysts, who warned that prolonged high prices threaten the chancellor Rishi Sunak's loan scheme to help households cope with sky-high gas prices amid the mounting cost of living crisis.

Cornwall Insights, which predicted the recent 54% rise in the cap on average energy bills to 1,971, said it had increased its forecasts for upcoming changes to the ceiling, which is determined by the energy regulator, Ofgem.