AN extra 300,000 homes across the UK could be pushed into fuel poverty by Christmas becau se of soaring energy prices.

The Fuel Poverty Advisory Group (FPAG) said the latest round of energy price rises has increased the average annual energy bill by 7%, taking it to £1247 for direct debit customers and £1336 for cash and cheque customers.

More than one-third of Scots households are estimated to be in fuel poverty, the term used when a household has to spend more than 10% of its income on energy bills.

Energy Action Scotland estimates that 900,000 households in Scotland are facing hardship.

The Scottish Government has pledged to ensure that, by November 2016, people would not be living in fuel poverty north of the Border.

It said basic energy-efficiency measures such as loft and cavity insulation, double glazing and new boilers had prevented up to 35,000 Scottish households from falling into fuel poverty over the past year.

Research has shown that six million households plan to cut back on their heating this winter due to fears about costs.

FPAG has urged Prime Minister David Cameron to take stronger action to ensure there is a more widespread and ambitious effort to tackle spiralling fuel poverty levels.

It is estimated almost half of the UK's fuel-poor households are pensioners, one-third contains people with a disability or illness, one-fifth contains a child aged five or under, and one in 10 house someone aged 75 or over.

It called on the UK Government to carry out an urgent impact assessment of welfare reforms on fuel poverty.

Derek Lickorish, chairman of the FPAG, said: "The plight of the fuel poor has never been more serious.

"Millions are living in misery due to high energy bills.

"A toxic cocktail of rising wholesale prices, the high cost of energy reforms and cuts in incomes for many households means fuel poverty levels are set to sky rocket without radical action."

The Government recently announced proposals to require energy firms to provide just four tariffs for each fuel and to place all customers on the cheapest price available for their chosen tariff.

But critics warned the plans could bring an end to cheap deals, stop consumers switching suppliers, reduce competition and push up bills in the long run.