Prepay meters costing up to third of households' income

Households on prepayment meters in the UK could see their energy bills cost up to a third of their household income this winter, new research has warned.

- ALBERT TOTH

The most vulnerable households will be worst affected, the findings from the Resolution Foundation show, as higher prices and colder weather have a disproportionate impact.

The UK’s 4 million households on prepayment meters will need to spend an estimated 30 per cent of their income or more on energy bills, after housing costs, across December, January and February.

These meters are generally concentrated in low-income households in the UK. They are most commonly installed in rented homes, with users required to pay for energy as they go and before it is used.

People in these households “remain overlooked” says the report, adding that “as [prepayment meters] are concentrated among poorer families, this drain on family finances is unsustainable, leading to families sitting in cold, dark homes.”