Charities’ concern as £25m in energy support yet to be redeemed

More than £25 million in energy bill support from the government is yet to be claimed by prepayment meter (PPM) customers, prompting concerns from consumer charities.

Earlier this year ministers announced the Energy Bills Support Scheme which is giving all households a £400 discount on their energy costs over the autumn and winter.

The payments will come in six monthly instalments, with households due to receive a £66 discount in October and November, rising to £67 each month from December through to March 2023.

However PayPoint, which provides pre-payment services to energy customers, said just 53% of the 800,000 vouchers it has issued on behalf of energy suppliers have been redeemed in October.

This means just £27 million has been claimed so far, out of a total of £52.8 million.

According to Ofgem there are an estimated 4 million consumers on a PPM, with around 2 million of these being smart PPM customers.

Those with a smart meter should have their discount applied automatically, while those on traditional meters should receive a voucher through the post, email or text.

There is concern that some customers may miss their vouchers and charities are urging consumers to check their mail before the vouchers expire after 90 days.

PayPoint said it had teamed up with Citizens Advice to support the charity’s campaign encouraging prepay energy customers to make sure their details are up to date with their supplier prior to the launch of the scheme earlier this month.

Gillian Cooper, head of energy policy at Citizens Advice, said: “Before winter has even hit, we’re seeing far too many people who can’t afford to top up their prepayment meter. That means going without access to the very basics like a hot meal.”

Responding to the news National Energy Action chief executive Adam Scorer said: “One of the least surprising outcomes from the Energy Bills Support Scheme is that people on older prepayment meters are most likely to miss out.

“They may not know that the scheme exists, be reluctant to open letters from suppliers, miss the email or can’t print the voucher off. Having the support in place, is of course, vital.

“Making sure people can and do access it is just as important. The UK government must learn this lesson for whatever comes after the Energy Price Guarantee.”

Support for customers in the face of rising energy bills will be one of the key discussion points at Utility Week Forum on 8-9 November in London. Find out more here.