More than £25 million in energy support vouchers for households on prepayment meters has not been claimed. It means that many of the over four million people who pay for energy in this way are missing out on some or all of the Government's scheme to take £400 off people's bills.
The Energy Bill Support Scheme began in October, and since the start of the month households should have started to receive the first instalment of the funds. But figures from an in-store payment company, reported by the BBC, show that only half of the expected value of vouchers had been redeemed.
Many people will have the £400 taken off their bills automatically, in six instalments across the winter, but those on prepayment meters need to claim vouchers to get the discount. Traditional prepayment meters are topped up via a key or card in a local newsagent or Post Office.
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A Government spokesperson urged customers to get the credit they are owed applied to their meter as soon as possible. The discount will be spread over six months, with £66 taken off bills in October and November and £67 taken off each month between December and March 2023.
The payment company PayPoint told BBC News that it was expecting to process 800,000 vouchers in October, worth £52.8 million, but that only £27 million had been claimed. The company, along with fuel poverty charities, is urging those using the meters to go through their post to see if they have missed the delivery, as the vouchers are only valid for 90 days.
The vouchers are sent by post, email or text and can also be redeemed with the Post Office and Payzone. Over four million people use prepayment meters, around half of whom have older, non-smart meters, according to Ofgem, the energy watchdog.
Head of energy policy at Citizens Advice, Gillian Cooper, said: "It's so important that everyone gets the support they're entitled to." She also urged customers to make sure their contact details are up to date and to contact their suppliers if they have not heard anything about the discount yet.
How do I get my discount?
If you use a traditional prepayment meter, topped up at a shop, and are with one of the main suppliers, you should receive vouchers in the post. They can then be redeemed at the Post Office, PayZone or PayPoint, where you usually top up. The voucher should arrive from most suppliers by the 17th of each month, and it's only valid for 90 days.
If you pay by other means, you may receive the support in various ways, depending on who your supplier is and the payment method you use. No one needs to apply for the Energy Bill Support Scheme, as it is for all households.
Those on a fixed monthly Direct Debit with EonNext , Shell, Octopus Energy, SOEnergy or Bulb will have £66 or £67 deducted from each monthly bill. People paying the same way to British Gas, Scottish Power, OvoSSE and Utilita will get the money refunded to their bank account after they've made their monthly payment.
If you pay monthly based on what you use, £66 or £67 will be knocked off your bill if you are with British Gas, Shell, Bulb, SOEnergy or Utilita. If you are will EonNext, Octopus Energy or OvoSSE, the money will be applied as credit, which will also reduce your total bill.
Anyone with a smart prepayment meter will have the credit automatically added to it. In most cases this will be to the electric one, but Shell is splitting it 50-50 between gas and electricity. Most suppliers do this in the first week of the month.
If you use a traditional prepayment meter, topped up at a shop, you should receive vouchers in the post by the main suppliers. The vouchers can be redeemed at the Post Office, PayZone or PayPoint, where you usually top up. The voucher should arrive from most suppliers by the 17th of each month, and it's only valid for 90 days.
An increasing number of people are being pushed into using prepayment gas and electricity meters as the energy crisis worsens, according to comparison website Uswitch. Customers may be put on these meters by their suppliers if they are struggling to keep up with bills, as it helps them control how much and how often they pay.
However, tariffs on prepayment meters tend to be more expensive, which Uswitch says makes customers more vulnerable and at risk of being disconnected.
Citizens Advice also warned in September that half a million more people could be forced onto the meters due to debts owed to suppliers. Gillian Cooper of the charity 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.
She added: "If you're in debt, your supplier has a duty to make sure you're only paying what's affordable. That includes reducing any debt repayments you're making."
A spokesperson for the Department for Business said the "Government has worked quickly to deliver the Energy Bills Support Scheme, helping a broad range of households struggling with energy bills this winter including £1,200 direct payments being made to vulnerable households."
They urged customers to get their credit applied to their meter as soon as possible.
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