Money Wellness
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calendar icon24 Dec 2024

30% of income could be used on prepayment meters this winter

Millions of families on prepayment meters could find themselves in a tight spot this winter.

The Resolution Foundation warns that energy bills might consume nearly a third of their income during the colder months.

With rising prices and chilly temperatures, the impact on poorer households is particularly severe.

Who’s affected?

Prepayment meters are mainly used by low-income families, with around 4 million households relying on them.

A quarter of the poorest households use these meters compared to just 1.5% of the wealthiest.

Many of these families live in rented, less energy-efficient homes, making winter heating even more costly.

As temperatures plummet, their energy costs are expected to soar.

For many, this could mean spending over 30% of their income after the rent’s paid on energy from December to February.

An ongoing energy crisis

Jonny Marshall from the Resolution Foundation says that for these households, the energy crisis is ongoing.

With high energy costs, families may have to ration their usage, which puts their health at risk.

The government has faced criticism for cutting winter fuel payments, although some support remains available.

Initiatives like the £150 warm home discount and a £500 million industry support package aim to help vulnerable families this winter.

 The government has also pledged to work closely with Ofgem to make sure involuntary prepayment meters will only be installed as a last resort.

Help if you can’t afford to top up your prepayment meter

If topping up your prepayment meter is a struggle, some options are available to assist you.

Here are some ways to get help.

Fuel vouchers

You might qualify for a fuel voucher, which is a code you receive via text, email, or letter.

This code lets you add credit to your electricity key or gas card.

To get a fuel voucher, get in touch with your local council, food bank or Citizens Advice.

Apply for an energy grant

Many energy companies have funds to support customers in need.

Check our guide on financial help from your energy supplier to find out how to apply.

Grants from charitable trusts

Various charitable organisations offer grants for those facing financial difficulties.

If you're having trouble paying your energy bills, have a look at grants you may be eligible for.

Find out if there are any grants you can apply for.

Household support fund

Local councils in England have funds to help residents with the rising cost of living.

This is called the household support fund and the support available varies depending where you live.

Get in touch with your local council to see what’s on offer in your area.

Priority services register

You may be able to get extra help from your energy supplier by joining the priority services register.

To sign up, you must be one of the following:

  • a pensioner
  • disabled
  • living with a long-term health condition
  • classed as ‘vulnerable’ by your energy network

Your energy network may consider you vulnerable if:

  • your English language skills aren’t strong
  • you're pregnant or have children under the age of five
  • you would struggle to smell gas

Being on the priority services register may get you access to a range of additional support, including:

  • prioritised calls
  • verification passwords for engineers so you know they’re legitimate
  • having your prepayment meter moved if you struggle to access it

To join, complete the form on your electricity operator's website. Your electricity operator is the company that owns the electricity cables in your area, not your electricity supplier.

Find your electricity operator.

Avatar of Michelle Kight

Michelle Kight

Michelle is a qualified journalist who spent over seven years writing for her local online newspaper. Having grown up in some of the North West’s most deprived areas, she has a first-hand and empathetic understanding of what it means to face serious money worries. With a strong interest in mental health issues, she is a keen advocate of boosting the accessibility of financial wellness services.

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