A record amount of government support reached some of the country’s most vulnerable households in January, as those on traditional prepayment meters (PPM) redeemed more energy bill support vouchers than at any other point in the scheme so far.
Redemption rates are up across all energy suppliers with three quarters of all vouchers now redeemed, following a dedicated government campaign and calls from the Energy Security Secretary for them to do more to help customers access all available support.
New figures published show 1.7 million vouchers were used by households with prepayment meters across Great Britain in January – 130,000 more than in December. This means the highest rate yet of government help has reached some of the most vulnerable households through the Energy Bills Support Scheme (EBSS) – with £530 million provided in total so far under EBSS.
The vouchers delivered through the scheme provide a total of £400 to help with energy costs this winter paid in monthly instalments.
The best performing electricity suppliers with the highest rates of voucher redemptions include E Gas & Electricity and Octopus, whose traditional prepayment meter (PPM) customers redeemed 87% and 85% of their vouchers respectively.
The 5 suppliers with the largest number of PPM customers – Centrica (British Gas), E.On, Ovo, EDF and Scottish Power – all showed an increased number of voucher redemptions, although some remained amongst those with the lowest rates overall.
It follows the Energy Security Secretary’s push for suppliers to do more to help vulnerable customers and concerns about the low take-up of EBSS vouchers. The government has also expanded campaign activity to reach eligible customers with additional advertising across community radio, social media and national magazine titles.
As of the end of January, 76% of all vouchers issued so far have now been redeemed – meaning support reached more of these households than at any other point since the scheme began.
However, even with this improvement the government is calling on suppliers to continue efforts to reach customers with unused vouchers – with around 1.9 million remaining unredeemed.
Energy Security Secretary Grant Shapps said:
The help we’ve put in place means we are covering around half of most household’s energy bill this winter – this is an unprecedented level of support.
With January temperatures having dropped to as low as -10 degrees in some parts of the country, I am pleased to announce today a record numbers of households taking up the government support.
But many households are yet to redeem the vouchers they are entitled to and I want energy companies to redouble their efforts to get the support to those who need it.
Today’s numbers reveal over £7.2 billion has now been provided to 98% of households across Great Britain through the EBSS. Across the regions rates of voucher redemption increased overall, but numbers show the fewest households making use of support in London (58%), Scotland (68%) and the Southeast of England (69%) – meaning many households are still missing out.
Redemption rates in all other regions are now above 70%, although ministers are maintaining calls for communities, local leaders and suppliers to make sure households using traditional prepayment meters are aware of the support and how to access it.
Key statistics today reveal:
• over a third of vouchers remain unclaimed in London’s local authorities, with households from Brent to Lewisham missing out on support to which they’re entitled
• outside of London, some of the lowest redemption rates are in Edinburgh (59%), Brighton (61%) and Glasgow (62%)
• Yorkshire & Humber and the North East of England have the highest overall PPM voucher redemption rates at 75% and 74% respectively – but even in these areas, greater voucher redemptions would bring help to more households using traditional prepayment meters
Whilst most people receive the discount automatically each month they are eligible, people using a traditional PPM receive this in the form of vouchers that need to be redeemed at a Post Office or PayPoint. Suppliers have a responsibility to inform their PPM customers how to access government support using the vouchers and must make several attempts to contact people who haven’t redeemed them.
Cllr James Jamieson, Chairman of the Local Government Association, which represents more than 350 councils across England and Wales, said:
Councils are working hard to ensure this support reaches those who need it, ramping up efforts up and down the country. As families are squeezed during the cost of living crisis, it is vital that households claim the support they are entitled to.
Last year the Energy Minister Graham Stuart met suppliers to discuss what other measures would help increase voucher redemptions by PPM customers, with many offering ongoing training for their call centre staff, and some sending representatives door-to-door to spread the word.
The Energy Security Secretary has also encouraged suppliers to replace traditional meters with smart meters, as they are able to receive government support payments automatically and detect when customers are self-rationing and disconnecting.
It comes in addition to a wider crackdown by the Energy Security Secretary on the mistreatment of vulnerable customers after concerns were raised about the sharp rise in companies seeking warrants to enter people’s homes to forcibly install prepayment meters.
Since Mr Shapps’ intervention all energy suppliers have now committed to ending the forced installation of prepayment meters in vulnerable customers’ homes, Ofgem has committed to speaking to consumers rather than just suppliers about their experiences and Lord Justice Edis issued directions to magistrates’ courts to stop approving warrants to force-fit prepayment meters grinding the practice to a firm halt.
