The number of families with prepayment energy meters who've been cut off as they can't afford to top up has ballooned by 220%, shocking new figures show.
Citizens Advice said more than 6,000 homes with a prepayment meter had asked for help with their bills between January and March this year, compared to only 2,067 cases during the same period last year.
Campaigners are pointing to the numbers as evidence that the fallout from record energy prices and huge build up of debt could impact millions of households for years to come, with families in a vicious circle of taking emergency top-ups from their energy supplier, which are repaid the next time they can afford to top up, leaving them short again. The problem has been made worse by the end of the £400 Energy Bill Support Scheme, which struggling families had come to rely on, according to founder of Energy Support and Advice UK, Gemma Hatvani.
Read more: Expert's tips on how to make £301 cost of living payment go further
And campaign group Debt Justice revealed pre-pay energy users are now collectively more than £1billion in debt. Joe Cox, senior policy officer at Debt Justice has called for a pause in energy debt enforcement and a reform of the energy system to "ensure everyone has access to the energy they need.”
Ian Thompson director of operations at Energy Support and Advice UK, said the crisis was far from over. "The energy crisis is still here and very real," he said. "There is a great relief for many with the colder months behind us and entering the warmer springtime months. This of course means the significant reduction of energy usage to heat our homes. But with no plans to replace or continue with the EBSS that ended in March 2023, many are carrying debt from winter usage as they cover current costs.
"Support from Government is still woefully lacking. While I appreciate there are some cost of living support payments on the way for the most vulnerable in our society, there are no more support payments planned to specifically offset the still very significant costs of energy. To put it simply, many households face entering this coming autumn and winter in a far worse energy security position than they did in October 2022, which is a chilling prospect. Primary and supplementary support services and funding are stretched to the maximum with growing food poverty hot on the heels of the energy crisis. Food prices are rising three times faster than wages."
In 2022, Citizens Advice saw more people who couldn't top up their prepayment meter than in the whole of the last 10 years combined and pre-pay energy users currently take an average of four and a half years to pay off electricity debt and four years to pay off gas debt, according to Debt Justice.
Earlier this month, the Government announced a new code of practice banning force fitting of prepayment meters for vulnerable customers, but Citizens Advice said while welcome, a lot of the support so far has been 'a sticking plaster" and the energy crisis was a long-term problem that needed a long-term solution.
"Citizens Advice believes targeted financial support in the form of a social tariff is the long-term solution needed to help millions of people struggling with record high energy bills," said a spokesperson for Citizens Advice Newcastle. "We are calling on the Government to put in place long-term policies to support people and are suggesting for annual cash payments to support certain households. Eligibility would be based on income and energy usage, with those on the lowest incomes and with high energy usage would receive most.
"The energy crisis is showing no sign of going away as we get into warmer weather, with many families still suffering from big winter bills. We would always advise people to contact their energy supplier in the first instance, as it has a duty to help. However, this is a long-term problem and it needs a long-term solution."
Now read:
- Here's why your bills are going up even though energy prices are staying the same
- DWP blunder causes £301 cost of living payment confusion on when cash will be paid
- Prepay meter customers hit with shock energy bills for hundreds of pounds
- Why cancelling your direct debit to save money when it's warmer may not be a good idea
- Confusion as £400 energy bills support for households comes to an end
