London Daily

Focus on the big picture.
Tuesday, Jul 29, 2025

Spring Budget: Prepayment energy meter bills to be cut by £45

Spring Budget: Prepayment energy meter bills to be cut by £45

More than four million struggling households are set to save £45 a year on energy bills from 1 July, the government has said.
This will happen by bringing prepayment energy charges in line with customers who pay by direct debit.

Households which have prepayment meters are typically vulnerable or on low incomes.

But they pay more because energy firms pass on the costs of managing the meters.

Chancellor Jeremy Hunt, who is expected to announce the plan in his Spring Budget on Wednesday, said it was "clearly unfair that those on prepayment meters pay more than others".

The extra charges struggling households would have paid will instead be met under the government-funded Energy Price Guarantee at a cost of £200m.

Regulator Ofgem will report on how to permanently end the "prepayment penalty" when that government support ends in April 2024, the Treasury said.

Prepayment meters have been under the spotlight in recent months.

Last month it emerged that debt agents acting for British Gas had broken into vulnerable people's homes to force-fit meters, and that courts had been waving through energy firm applications to forcibly install meters.

Ofgem, which is reviewing prepayment meters, told energy firms at the end of February to start compensating customers whose homes were wrongfully fitted with a prepayment meter.

Firms were banned from installing prepayment energy meters under warrant, but that is due to end at the end of March.

In November last year it was revealed that a rising number of households are having their smart meters remotely switched to prepayment meters.

Energy Security Secretary Grant Shapps said: "Charging prepayment meter customers more to receive their energy is a tax on some of our most vulnerable - this change will stop that."

Labour said the government had "finally listened" to its calls for "an end to the unfair prepayment meter penalty".

"Their delay will be cold comfort for the millions of prepayment customers who have been paying higher energy bills as a result of the government's indecisiveness," said Ed Miliband, Labour's shadow climate and net zero secretary.

In addition to prepayment help, the government is expected to extend the Energy Price Guarantee at current levels for a further three months.

Typical household energy bills were going to rise to £3,000 a year from April, the government is expected to retain its current level of support with the cap at £2,500.
Newsletter

Related Articles

0:00
0:00
Close
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
A family has been arrested in the UK for displaying the British flag
Mel Gibson refuses to work with Robert De Niro, saying, "Keep that woke clown away from me."
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
The British propaganda channel BBC News lies again.
Deputy attorney general's second day of meeting with Ghislaine Maxwell has concluded
Controversial March in Switzerland Features Men Dressed in Nazi Uniforms
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
Thai Civilian Death Toll Rises to 12 in Cambodian Cross-Border Attacks
TSUNAMI: Trump Just Crossed the Rubicon—And There’s No Turning Back
Over 120 Criminal Cases Dismissed in Boston Amid Public Defender Shortage
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
Trump Announces $550 Billion Japanese Investment and New Trade Agreements with Indonesia and the Philippines
US Treasury Secretary Calls for Institutional Review of Federal Reserve Amid AI‑Driven Growth Expectations
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Severe Flooding in South Korea Claims Lives Amid Ongoing Rescue Operations
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
CEO Resigns Amid Controversy Over Relationship with HR Executive
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
U.S. Congress Approves Rescissions Act Cutting Federal Funding for NPR and PBS
North Korea Restricts Foreign Tourist Access to New Seaside Resort
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
Epstein Files Deepen Republican Party Divide
Zuckerberg Faces $8 Billion Privacy Lawsuit From Meta Shareholders
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
SpaceX Nears $400 Billion Valuation With New Share Sale
Microsoft, US Lab to Use AI for Faster Nuclear Plant Licensing
Trump Walks Back Talk of Firing Fed Chair Jerome Powell
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Irish Tech Worker Detained 100 days by US Authorities for Overstaying Visa
Dimon Warns on Fed Independence as Trump Administration Eyes Powell’s Succession
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
×