Ofgem announced in early 2024 that some energy suppliers can start installing involuntary prepayment meters again, according to StepChange1. Consumer Scotland dates the change to January 2024, describing it as Ofgem allowing suppliers to "re-engage in the practice of putting indebted consumers onto prepayment meters without permission, under tightly regulated circumstances"3.
The wider energy affordability picture has shifted over the same period. Ofgem's price cap rose from £1,690 in April 2024 to £1,849 in April 2025, and the cap of £1,849 per year for the quarter from 1 April to 30 June 2025 is 62% higher than the £1,138 between April and June 20213. Debt and arrears in the Great Britain energy market reached £3.85bn in the fourth quarter of 2024, a record high3.
Consumer Scotland's survey, with fieldwork between 31 January and 14 February 2025 and around 1,600 respondents in Scotland, found that 16% of respondents, equivalent to 393,000 households, find it difficult to keep up with their energy bills, down from 26% a year earlier and 35% in winter 2022-20233. The proportion in energy debt rose to 15%, equivalent to 383,000 households in Scotland, described as a statistically significant rise from 9% a year earlier3. Among respondents in energy debt or arrears, 34% reported being put on a prepayment meter because of their debt, up from 16% the previous year3.
"There has been a doubling in the number of consumers on a prepayment meter due to their debt."
Separately, Ofgem has said around £240 million is owed back to customers from energy accounts closed while still in credit; refunds may be due to those who closed old accounts when moving home or switching suppliers in the past five years1.
Why it matters for households
Involuntary prepayment meter installation means a supplier can move a household onto a prepayment meter without the customer's agreement, in the circumstances Ofgem has permitted since early 20241. Prepayment customers pay for energy in advance, and StepChange advises speaking to your supplier if you are on a prepayment meter and claiming the Warm Home Discount1. Consumer Scotland's figures indicate the number of consumers on prepayment meters because of debt has grown over the past year3.
Other support rules have changed. Winter Fuel Payments, which used to go to anyone of pension age, are now means tested: in 2024/25 eligibility requires being born before 23 September 1958 and living in England and Wales, plus receipt of Pension Credit, Universal Credit, income-related ESA, income-based JSA or Income Support1. People aged 66 to 79 receive £200 per household, rising to £300 for those aged 80 or over1. The Warm Home Discount Scheme reopens in October 2024, worth £150 off an electricity bill for eligible households1. Cold Weather Payments of £25 apply for each seven-day period of very cold weather between 1 November and 31 March in England and Wales, while Scotland's Winter Heating Payment is an annual payment not based on temperature1. The Household Support Fund was extended for another six months, announced in September 20241.
What happens next
From winter 2025/26, Scotland will introduce the Pension Age Winter Heating Payment1. Consumer Scotland notes a UK government plan to broaden Warm Home Discount eligibility in winter 2025-2026 to include all households in receipt of means-tested benefits3. For winter 2024/25, the Department for Work and Pensions has committed to make payments to eligible pensioners in Scotland on terms equivalent to Winter Fuel Payments in England and Wales1.
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