A fifth (21%) of energy prepayment meter customers have skipped hot meals because they can’t afford to top up, over a third (35%) have sat in a coat and hat indoors to fend off the cold and a fifth (19%) have sat in the dark[1]
A sixth (15%) of prepayment customers have avoided using energy for two days or more because of the affordability squeeze — up by a third compared to this time last year[1]
Prepayment customers say a tenner’s worth of energy now lasts less than 4.5 days on average, down from nearly six days this time last year[2]
4.5 million energy customers use prepayment meters[3], which cost £56.40 more a year on average than a standard credit meter[4]
Uswitch.com urges people who want to move off a prepayment meter to talk to their supplier about whether it may be an option for them
A sixth (15%) of prepayment meter customers have avoided using energy for two days or more this winter because they cannot afford to top up — up by a third (36%) compared to this time last year[1], according to Uswitch.com, the comparison and switching service.
Around 4.5 million energy customers use prepayment meters for their energy[3], paying £97.40 a month on average[4]. Prepayment energy prices tend to be higher, owing to the extra cost of running the infrastructure, meaning prepayment customers typically pay more for their energy than those on a fixed deal with a standard meter, who pay £92.70 a month on average. People on prepayment meters currently pay £56.40 more than those on fixed tariffs over the course of a year[4].
The new findings from Uswitch suggest that the increase in the cost of living is already having an impact, with many prepayment meter customers already struggling with their energy bills, even before the energy price cap rises in April by £708 from £1,309 to £2,017.
Prepayment meter customers say that topping up their meter with £10 a year ago would buy enough energy to last an average of 5.8 days. £10 now lasts just 4.4 days, meaning people now need to top up seven times a month on average, versus five previously[2].
It’s likely when the prepayment cap rises to £2,017, on April 1st, that households could see a £10 top up last for even less time than they typically budget for.
A fifth (21%) of those with prepayment meters have skipped hot meals because they cannot afford to top up, an increase of almost a quarter (23%) on the proportion who did so at this time last year[1].
Over a third (35%) have worn a coat, hat and gloves indoors to fend off the cold rather than putting the heating on, while nearly a fifth (19%) have sat in the dark to avoid using energy. One in 10 (10%) of people have also not been able to make an important call because they ran out of battery on their mobile phone while avoiding charging in order to save energy[1].
Nearly a sixth (13%) of those on prepayment meters say they want to move to a traditional meter instead[5], while 16% of people who have either not tried to move to a credit meter, or were not successful in switching over, did not realise it was even possible to move[6].
Of those who have considered switching to a traditional meter, 13% said their landlord had or would prevent them from doing so, while one in ten (12%) are confused by the process[6].
Meanwhile, 7% of people who tried to move were prevented from doing so because their supplier said they were in too much debt, while 6% could not afford to pay the upfront cost of a deposit for a new meter and 5% failed a credit check[6].
Jean Hayes, community engagement lead at Uswitch.com said: “The upcoming increase in the energy price cap is going to be challenging for everyone, but people on prepayment meters are set to be hit hardest.
“Prepayment customers are often the most financially vulnerable, and our research suggests some are already being forced to make a tough choice between heating and eating.
“As the rapidly rising cost of living eats into many households’ budgets, it’s alarming to see that a sixth of people with prepayment meters have already felt compelled to avoid using their electricity for days at a time this year - and this is before the new energy price cap even takes effect.
“Prepayment meters often make energy more expensive than standard credit meters, so anyone who is finding it unaffordable should speak to their supplier and see if moving to a standard meter could be an option for them.”
Find out how you could save with Uswitch here.
Uswitch is one of the UK’s top comparison websites for home services switching, including broadband, mobiles, SIM Only and insurance. We’ve saved consumers over £2.5 billion off their bills since we launched in September 2000.
In 2022, Uswitch launched its free mobile app, Utrack, to help consumers manage their home energy costs. By connecting to their smart meter, users can track their energy usage hourly, get dynamic insights and calculate potential savings with handy tips.
Uswitch is part of RVU, a global group of online brands with a mission to empower consumers to make more confident home services, insurance and financial decisions.