And a leading Euro MP, whose constituency embraces Scarborough, has branded the profits “obscene” and is demanding an EU-led inquiry into British fuel price increases.

Dennis Orford, treasurer of the Scarborough and Filey Older People’s Forum – The Voice, said: “How can they justify such an increase with such big profits?

“These increases will affect many older people who face bigger council tax bills and are seeing their food bills rising fast.

“We are very concerned about the future and how people will cope.

“The older you get the worse it can get, even if you also have a private pension, because for many they are fixed so if prices go up they will be struggling.”

Overall council tax bills are likely to go up by up to 4.75 per cent from April, while food bills are rising by around eight per cent.

“Inflation has been relatively stable for quite some time but in the last few months food and fuel prices have been going up fast. It means many people will have less room for manoeuvre in trying to find the money to pay their bills,” added Mr Orford.

The forum recently wrote to Chancellor Alistair Darling calling for an increase in the winter fuel allowance from £200 to £300.

Edward McMillan-Scott, Conservative Euro MP for Yorkshire and Humber, said he had lodged a formal complaint with the European Commission in Brussels last month over allegations of price-fixing among the power companies.

Four of the power companies in Britain are owned by French, German or Spanish parent companies.

He said he had received emails and letters of support and constituents’ requests for help in their own battles with power giants and that pensioners had told him the increases were “frightening”.

Mr McMillan-Scott, a Euro- pean Parliament vice-president, said: “The announcement of £571 million profits at British Gas’ residential arm, up from £95 million in 2006, is obscene when there are people across the region who are bearing the brunt of this greed.”