In real money terms this means that the level of disposable income available to households will drop by over £1,000 a year.
Neil Saunders, director at Verdict, said: "Mortgage rates, which are at a very low level, are set to increase. And utility bills are also likely to rise. This will all take money out of people's pockets."
Last month, consumer group Which? predicted that poorly insulated homes could see their gas and electricity bills increase by 20 per cent by the year 2020. It also revealed that 28 per cent of people are already concerned about the amount they have to pay.
One way of reducing your energy bills could be by comparing and switching supplier online which Which? believes could save households £263 per year.
Click here to run an energy price comparison, and see if you could be paying less for your gas and electricity.