Meters: Pre-payment

(asked on 12th January 2023) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, with reference to the Citizens Advice report entitled Kept in the dark: The urgent need for action on prepayment meters, published in January 2023, if he will make an assessment of the implications for his policies of the sections of that report on people who receive (a) a pension and (b) social security payments.


Answered by
Mims Davies Portrait
Mims Davies
Parliamentary Under-Secretary (Department for Work and Pensions)
This question was answered on 19th January 2023

There are strict Ofgem rules in place to protect prepayment meter customers. Installing prepayment meters without consent to recover debt must be a last resort and whenever suppliers install a prepayment meter, they must verify that it is safe and reasonably practicable to do so.

Ofgem has recently conducted a Market Compliance Review assessing how suppliers support customers in vulnerable situations, including assessing suppliers’ processes for installing prepayment meters. To drive improvements, Ofgem has started compliance engagement with suppliers and required them to take action to address the weaknesses that have been identified. We expect suppliers to fully comply with their obligations and welcome the steps Ofgem is taking

The Government's Energy Price Guarantee will save a typical British household around £900 this winter, based on what energy prices would have been under the current price cap - reducing bills by roughly a third. We are also providing a £400 discount on energy bills for all domestic energy users over this winter. Households with smart prepayment meters will get the discount applied to their account and those with traditional prepayment meters, that are topped-up via a key or card, have been sent vouchers.

All benefit rates and State Pensions will increase in line with the Consumer Prices Index for the year to September 2022. This will mean that, subject to parliamentary approval, they will increase by 10.1% in April. In order to increase the number of households who can benefit from these uprating decisions the benefit cap will also be increased by 10.1% subject to parliamentary approval.

In addition, for 2023/24, households on eligible means-tested benefits will get up to £900 in Cost of Living Payments. This will be split into three payments of around £300 each across the 2023/24 financial year. A separate £300 payment will be made to over eight million pensioner households on top of their Winter Fuel Payments and individuals in receipt of eligible disability benefits will receive a £150 payment. Further to this, the amended Energy Price Guarantee will save the average UK household £500 in 2023/24.

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