**Thousands of Prepayment Energy Customers Offered Up to £1,700 in Grants as Energy Price Cap Falls**
Prepayment meter customers across the UK could soon benefit from grants of up to £1,700 to help manage their energy bills, after the latest energy price cap came into effect today. The move aims to alleviate the ongoing financial burden many households face, even as price reductions are enacted.
From 1st July, the energy price cap has been lowered by 7 per cent, bringing the average annual bill for a typical dual-fuel household down to £1,720. This is a notable decrease from the previous limit of £1,849. However, while this development will be welcomed by many, consumer advocacy groups warn that the reduction may still fall short of addressing the genuine struggles experienced by those on prepayment meters.
Statistics provided by Ofgem, the energy regulator, reveal a stark picture—more than half of customers using prepayment meters found themselves in debt to their suppliers by the close of 2024. The combination of higher tariffs for pay-as-you-go customers and difficulties in accessing support means that financial stress for this group remains acute, despite the lower cap.
Recognising this ongoing challenge, the British Gas Energy Trust, a fuel poverty charity, has stepped in with additional support. The organisation is offering grants of up to £1,700 to eligible prepayment customers who are in arrears with their suppliers. This initiative is part of the charity’s Individuals and Families Fund, geared towards households facing mounting debt with any energy provider, provided they do not have access to another supplier-specific assistance programme.
Jessica Taplin, Chief Executive of the British Gas Energy Trust, elaborated on the unique challenges prepayment customers encounter: “Unlike those paying by direct debit, prepayment meter users often see money intended for energy automatically applied to existing debts. This means they can exhaust their available credit very quickly, making it far harder to break the cycle of debt. The grants we provide through the Individuals and Families Fund can be transformative for households at risk, and we urge anyone who might be eligible to explore the criteria and submit an application.”
Industry observers have long highlighted the vulnerability of prepayment customers. Unlike those able to spread payments across the year, pay-as-you-go users tend to feel the pinch most acutely during colder months and price spikes, increasing the risk of self-disconnection or rationing energy for essential needs.
To apply for the British Gas Energy Trust grant, applicants must demonstrate they are in arrears with their supplier and meet other eligibility criteria outlined by the charity. Importantly, the scheme is open to customers of any energy firm, not just British Gas, as long as they do not have access to a comparable support scheme from their own supplier.
Consumer rights groups have praised the initiative, emphasising the vital need for targeted aid as households continue to wrestle with the practical realities of rising living costs. Neil Lawrence, Ofgem’s Director for Retail, recently commented that while reductions in the price cap are positive, support such as the Individuals and Families Fund is essential for those at the sharpest edge of the cost-of-living crisis.
Government officials have indicated that while energy prices are likely to remain lower in the immediate future, volatility in global energy markets and ongoing inflationary pressures mean that ongoing support for vulnerable consumers is likely to continue into 2026.
The British Gas Energy Trust has stressed the importance of early application, given the high levels of demand expected for these grants. Interested individuals can find further details and guidance on the charity’s official website.
As the UK navigates the changing landscape of domestic energy costs, schemes like the Individuals and Families Fund offer a crucial lifeline for thousands of families, helping ensure that households are not left in the dark this winter.