MORE than two million people will have their gas and electricity cut off this winter because they cannot afford to top up their prepayment meter.
Citizens Advice is concerned that having no gas and electricity would not be a “one-off” experience for many after finding that 1.7million people disconnected at least once a month last year.
Half of prepayment meter users with children under four had disconnected in the past year because they could not afford to top up, Citizens Advice found
Some 800,000 people went for more than 24 hours without gas and electricity last year because they could not afford to top up.
The charity raised its concerns after Ofgem announced that it had permitted EDF, Octopus and Scottish Power to return to forcibly fitting prepayment meters (PPMs) after they were temporarily banned after a scandal around the practice.
Citizens Advice said it expected this to be its busiest winter for helping people who cannot afford to top up.
Its latest research suggests that more than five million people live in households in debt to their energy supplier, putting them at risk of debt collection and being forced onto a prepayment meter.
Its survey found that one in four people cannot afford their essential bills, and one in 10 households has had to borrow money in the past six months to cover their energy bills.
Half of those in debt to their energy supplier (49%) have turned off the heating in their homes, while almost three million people live in households where they have skipped meals, cut back on food spending or sold possessions in the last year to keep their meter topped up, the survey found.
And half of prepayment meter users with children under four had disconnected in the past year because they could not afford to top up, compared with a quarter (23%) of people with no children, the charity found.
Citizens Advice chief executive Dame Clare Moriarty said: “Our frontline advisers are helping more people than ever who can’t pay their energy bill.
“Record numbers are in debt to their supplier and millions with a prepayment meter are too often going without heating and hot meals because they can’t afford to top up.
“The Government has not provided new energy bill support for those in need and has run out of time to develop the long-term approach it promised by April 2024.
“Without immediate action, we risk re-running this same crisis every winter.”
If you have a prepayment meter and you’re struggling to keep your lets on, there’s plenty of help out there:
1. Speak to your energy supplier
If you fall into debt, you can always approach your supplier to see if they can put you on a repayment plan before putting you on a prepayment meter.
This involves paying off what you owe in instalments over a set period.
If your supplier offers you a repayment plan you don’t think you can afford, speak to them again to see if you can negotiate a better deal.
2. Apply for an energy grant
Several energy firms have grant schemes available to customers struggling to cover their bills.
But eligibility criteria varies depending on the supplier and the amount you can get depends on your financial circumstances.
For example, British Gas or Scottish Gas customers struggling to pay their energy bills can get grants worth up to £1,500.
British Gas also offers help via its British Gas Energy Trust and Individuals Family Fund.
You don’t need to be a British Gas customer to apply for the second fund.
EDF, E.ON, Octopus Energy and Scottish Power all offer grants to struggling customers too.
If you’re with any of these firms, you should contact their customer service team or check out their websites for more details.
3. Ask to join the priority services register (PSR)
Thousands of vulnerable households are missing out on extra help and protections by not signing up to the Priority Services Register (PSR).
The service helps support vulnerable households, such as those who are elderly or ill, and some of the perks include being given advance warning of blackouts, free gas safety checks and extra support if you’re struggling.
Not everyone is eligible for the Priority Services Register. Your energy firm must deem you to be vulnerable.
This could apply to you if you:
Have reached state pension age
You are disabled or have a long-term medical condition
You are recovering from an injury
Have a hearing or sight condition
Have a mental health condition
You are pregnant or have young children
You need to use medical equipment that requires a power supply
There could be other situations where you’re eligible too, like if you need short-term support after a hospital stay.
For full details on eligibility, visit Ofgem’s website.
Get in touch with your energy firm to see if you can apply.
4. Apply for support through the Household Support Fund
The latest round of Household Support Fund is worth £842million.
Each council gets a different portion of funding depending on the size of the catchment area, population, and need.
They then offer hard-up households, vouchers or grants, but the amount you can get will vary by location, so you’ll have to check to see what you can get and how your council will pay you.
Some councils will make payouts automatically and others will require you to fill in an application form.
You’ll usually need to be on a low income to receive the help.
Some local authorities are handing out energy vouchers while others are making bank transfers.
Councils have until March 31 to allocate their share of the latest fund, so you will want to act quickly.