Research published for the Warm This Winter campaign on 1 December 2022 found that 64% of prepayment meter (PPM) customers are vulnerable, with 51% having health conditions or disabilities. The survey of 2,198 people, carried out on 29 and 30 November 2022 and weighted to be representative of the UK population, defined a vulnerable household as one with a child under 6, an adult over 65, or a person who is disabled or has a long term health condition1.
Over one in ten (13%) PPM customers had already self-disconnected by massively reducing their energy supply, and almost a third (31%) now live in cold damp homes, against a national average of 19%. Among PPM customers who are also classified as vulnerable, 14% had disconnected and 36% were living in a cold damp home. The figures were gathered before the cold snap predicted for the days after publication1.
The research separates traditional meters from smart meters. Of customers on old fashioned PPMs, 18% had massively reduced their energy use, against 7% of smart meter PPM customers. A further 33% of old PPM households and 53% of smart PPM households had somewhat reduced consumption1.
On how customers arrive on the tariffs, research by Utilita reported in The Sun indicated that while 86% did choose to be on a PPM, this implies as many as 14% of the 4.5m PPM households, about 630,000 households, did not actively choose to be on the tariffs1. An investigation for the i paper found energy firms had secured almost 500,000 court warrants to install the meters in the homes of customers in debt since the end of lockdown, and that in one series of cases almost 500 applications for prepayment meter warrants were issued in just under four minutes1.
The End Fuel Poverty Coalition, which published the findings, has called for a ban on the forced transfer of customers to prepayment meters. A spokesperson said:
"People on low incomes have always saved energy, but if people self-disconnect or drastically reduce their energy use, they are at risk from the severe health complications of living in a cold damp home."
Prepayment meters could cost customers in excess of £200 more for their energy this winter, according to the research. Customers on prepayment tariffs repay energy debts and incur daily standing charges on top of a higher unit cost, which the Coalition says can leave no money for energy and lead to self-disconnection1.
Caroline Abrahams, Charity Director at Age UK, said PPM charges are generally higher than direct debit charges, leading to higher rates of fuel poverty among this group. Although PPMs are included in the Government's £400 energy bill discount scheme, Age UK estimates at least 150,000 older households relying on an old PPM will miss out on the £400 because of problems with vouchers issued for older meters, and recent Government figures suggest over 40% of vouchers sent to PPM households are yet to be redeemed1.
| Measure | All PPM customers | Vulnerable PPM customers |
|---|---|---|
| Self-disconnected by massively reducing supply | 13% | 14% |
| Living in a cold damp home | 31% | 36% |
Why it matters for households
For a household on a prepayment meter, energy independence is limited by the meter itself: supply stops when the credit runs out, and debt repayment and standing charges are deducted before energy is bought. The research indicates that a substantial share of these households are already managing by cutting consumption, which is the mechanism behind self-disconnection and prepayment meter data and the health risks set out in cold homes and health. The gap between 31% of PPM customers and the 19% national average in cold damp homes is the practical measure of that difference. The £400 discount reaches PPM households through vouchers rather than automatic credit, and Age UK's estimate that at least 150,000 older households on old meters will miss out, alongside over 40% of vouchers unredeemed, means support already allocated may not arrive. The Coalition also advises customers to check all messages from energy firms and, if contacted about a prepayment meter installation, to contact the Good Law Project, which is looking to challenge these transfers1.
What happens next
The National Pensioners Convention has called a protest against excess winter mortality rates on Thursday 8 December 2022 at 12 noon, meeting at the George V Statue, Old Palace Yard1. The findings follow a weekend of Warm This Winter protests in more than 40 locations across the UK1. Age UK has called for a promotional campaign to encourage people with old PPMs to redeem their vouchers, with repeat vouchers dispatched to homes yet to redeem and extensions given to expiry dates, and for the Government and Ofgem to consider a moratorium on forced PPM installations until energy prices stabilise1. No decision on a moratorium or on the Coalition's call for a ban on forced transfers has been reported.