Shadow Chancellor Rachel Reeves has announced that Labour will finally end the injustice that sees people with energy prepayment meters paying over the odds for their gas and electricity.
This means that people who pay for their energy in advance – often those who are on the lowest incomes – will be charged the same as those who pay by direct debit.
With forecasts suggesting the typical energy bill could rise to £3,500 in October, and more than £4,200 in January, bringing the prepayment energy prices into line with those for direct debit customers will provide relief to 4 million households, whose disposable incomes are around half of those of households paying by direct debt.
This is the first strand of a fuller package on the energy crisis that Reeves, Labour Leader Keir Starmer, and Shadow Energy Secretary Ed Miliband have been working on to publish ahead of the 26 August price cap announcement from Ofgem, which will be rolled out in the coming days.
Portsmouth South MP, Stephen Morgan, said:
“Labour will end the injustice which sees people in Portsmouth with pre-pay energy meters paying over the odds for their gas and electricity.
“By bringing the prepay energy prices into line with those for direct debit customers Labour would provide relief to 4 million households, whose disposable incomes are half that of households paying by direct debit.
“Labour is showing the urgency this situation demands and the strong leadership the country wants and needs to get us through this crisis.”
Rachel Reeves MP, Labour’s Shadow Chancellor, also said:
“It’s outrageous that people on prepayment meters have to pay more for their energy. Why should those with the least have to pay more to heat their homes and put the lights on? This is unjustifiable and morally wrong.
“As energy prices spiral, this unfair prepayment premium must end. Labour would make sure that no one pays over the odds for the same gas and electricity that everyone else gets, as well as taking broader action to help people manage their bills over the winter.
“We’re in the midst of an energy emergency that is only going to get worse. A crisis like this requires strong leadership, but instead the Conservatives have lost control of the economy and have nothing to offer. They need to get a grip and take urgent action.
“Labour will take the action that’s needed to get us through this national emergency, and build the stronger, more secure economy Britain deserves.”
