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Prepayment energy meters hit those on the lowest incomes hardest says Usdaw – the Government must act

Date: 12 January 2023 Retail trade union Usdaw has joined a call from Citizens Advice for the Government to ban forced prepayment meter installations until new protections are introduced, ensuring households can no longer be fully cut off from gas and electricity.
New research from Citizens Advice found that 3.2 million people across Great Britain ran out of credit on their prepayment meter last year because they couldn’t afford to top up. For most it’s not just a one off. Citizens Advice also found more than two million people are being disconnected at least once a month. More than one in five prepayment meter customers cut off in the past year then spent at least 24 hours without gas or electricity, leaving them unable to turn the heating on or cook a hot meal.
 
Usdaw’s own cost of living survey found that benefit claimants, typically some of the lowest paid workers, are twice as likely to be on prepayment meters, which is the most expensive way of paying for gas and electricity. The survey of over 7,500 members, mainly key workers, also found that:
  • Nearly seven in ten have struggled to pay an energy bill over the past twelve months.
  • 45% no longer use their household heating.
  • Over a third have cut down on other essentials such as food. 
Paddy Lillis – Usdaw General Secretary says: “This cost of living crisis is affecting everyone, but once again, those on the lowest incomes are being hit hardest. Usdaw's evidence shows that those on pre-payment meters, who are typically some of the poorest households, are twice as likely to be struggling to pay their energy bills. So we very much back the Citizens Advice campaign.
 
“The truth is, pre-payment meters act as nothing but a poverty tax. Those who struggle to pay their bills find themselves forced on to a pre-payment meter and then, as a result of their financial difficulties, they have to pay even more for their energy costs. This is unreasonable, unfair, and unacceptable.
 
“We welcome Labour's commitment to ending this scandalous rip-off system. It is clear that we need a long-term plan to reduce energy bills and we need action right now, to support customers who fall into energy debt or can’t pay their bills.”
 
Notes for editors:
 
Usdaw (Union of Shop, Distributive and Allied Workers) is the UK's fifth biggest trade union with around 360,000 members. Most Usdaw members work in the retail sector, but the union also has many members in transport, distribution, food manufacturing, chemical industry and other trades.
 
For Usdaw press releases visit: http://www.usdaw.org.uk/news and you can follow us on Twitter @UsdawUnion

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