Backbench Business

Indicated assent.

Congratulates the hon. Lady on securing today’s debate; raises concern over higher energy costs for prepayment metre users, often in deprivation; questions the fairness of current price setting practices ('rocket and feathers principle'); highlights lack of scrutiny in court decisions leading to disconnection; emphasises health risks for those using home medical devices.

Congratulates the hon. Lady on her speech; questions why some people pay up to £4,300 just on gas when prices have dropped; emphasises disparity between direct debit payments and prepayment metre costs.

Patrick Grady congratulates his colleague for securing the debate and acknowledges the potential benefits of prepayment metres but criticises their current high costs compared to direct debit payments. He highlights Citizens Advice's calculation that households moved to a prepayment metre this year will spend £49.6 million more than they would with direct debits. Grady also mentions Marie Curie’s report on dying in poverty and the case of Mel and Tom, who are struggling due to high energy bills and cold climate. He emphasises the need for support from winter fuel payments and warm home discount schemes for terminally ill patients regardless of age.

Condemns the term 'self-disconnection' as a euphemism for energy poverty caused by the cost of living crisis and rising energy prices. Criticises prepayment metres for their high standing charges and tariffs, which disproportionately affect vulnerable individuals. Highlights that 500,000 people in Scotland use prepayment metres due to financial hardship, advocating for an end to higher tariffs and a social tariff system.

The hon. Member for Hornsey and Friern Barnet emphasised the social inequity caused by high energy prices, particularly affecting those on prepayment metres in sub-zero temperatures. She highlighted poor customer service from energy companies, with constituents experiencing delays in receiving energy rebate vouchers despite soaring bills. Catherine West also noted that even MPs are struggling to afford their energy costs, illustrating the widespread impact of this issue. She expressed concern about inherited debt problems and proposed a need for more regulation and proactive measures by the regulator to address these challenges. Additionally, she questioned how standing charges and unit cost prices can be clarified and made affordable for those in vulnerable housing.

Committed to securing action on the higher standing charges for prepayment metre users. Disagrees with forced switching to prepayment metres, particularly during a cost of living crisis. Emphasised the health and housing implications, including increased likelihood of damp homes which exacerbate health issues. Cited Utilita research indicating that 14% of households (630,000) were not choosing these tariffs voluntarily. Advocated for a ban on switching to prepayment mode without active consent. Raised concerns about missed out Government support packages affecting those on prepayment metres and proposed tiered tariffs as an alternative.

I congratulate the hon. Member for Glasgow North East on securing this debate and emphasising her optimism regarding potential government action. Hon. Members have highlighted that about 15% of UK households are on smart metres for electricity and 14% are on prepaid metres for gas, figures which may well have risen since last calculated. Approximately half a million warrants to place people on prepaid metres have been successfully passed through the courts since the beginning of the covid pandemic in 2021, indicating an urgent need for action. The situation reflects a two-tier arrangement where those with accounts can manage large amounts of debt while those on prepaid metres face disconnection once their credit limit is exceeded. I suggest that most people are on prepaid metres due to necessity rather than choice. There needs to be a moratorium on further warrants to put people on prepaid metres at least for the duration of the energy crisis, and longer-term actions should address disparities in pricing and standing charges between prepayment metre users and other customers.

I thank my hon. Friend for his kind words and his support regarding the need for urgent action on prepaid metres. I agree that positive thinking can lead to positive results, but it is crucial that the Government recognises the current dire situation faced by people with prepayment metres.

My hon. Friend agrees that this is an example of 'rip-off Britain', highlighting the need for urgent action to address the unfair treatment faced by those using prepayment metres.

The hon. Member for Thirsk and Malton highlighted the importance of prepayment metres in helping vulnerable customers manage their energy costs, acknowledging both the benefits and challenges associated with these metres. He emphasised that modern smart metres are easier to use and help prevent debt accumulation. The Government provides robust protections for those facing financial difficulties, including forbearance mechanisms and legal requirements for suppliers to offer fair deals. The hon. Member also stressed the need to review current provisions continually, aiming to improve support for vulnerable households.

The hon. Member for Hornsey and Friern Barnet intervened to highlight a specific issue faced by student households spending excessively high amounts on utilities, suggesting that the problem extends beyond debt management.

The hon. Member intervened to argue that energy companies are more likely to work out payment plans rather than immediately resorting to legal action when dealing with customers who cannot pay their bills.

The hon. Member for Aberafan Maesteg raised concerns about constituents not receiving prepayment vouchers from energy suppliers and the potential loss of financial support if these vouchers expire, urging the Government to ensure better communication between suppliers and customers.

The hon. Member intervened to question the Minister on why the Department for Business, Energy and Industrial Strategy is considering revisiting social tariffs despite acknowledging their success, suggesting a contradiction in the argument presented by the Government.

The hon. Member asked what can be done on social tariffs to support vulnerable customers further.

Ms McLaughlin thanked her team for their involvement in the campaign and expressed concerns about the inconsistency of approach to energy debt management. She highlighted that prepayment metre customers are automatically disconnected when they exceed £10 of debt, whereas those who pay in arrears receive time and support before disconnection. She called for a moratorium on disconnections over Christmas and urged for better treatment of prepayment metre users.