Why are £27 million worth of Energy Support Scheme vouchers for those on old-style prepayment meters going unclaimed?

Financial and emotional overwhelm, as well as systemic failures are likely to play a part. 
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Times are tight and it is worrying that those on the lowest income are not taking up financial help on offer. Prepayment meters are often used in households that have low incomes or are in debt and need flexibility managing their finances.

By now, the first and second vouchers, each worth £66, should have been received. The vouchers originally had 90 days from the point of issue to be claimed. This has since been updated by the Minister for Climate, Graham Stuart, who said people can request a replacement from their supplier until 30th June 2023, if the vouchers expire before they are used.

As a not-for-profit supporting those on a low income with money and related issues, Clean Slate is able to offer insights based on data from its services and feedback from staff and clients as well as national data.

A Clean Slate investigation has revealed two key factors are at play: 

1. Overwhelm and misunderstanding 

• ​​​​​Of 363 Clean Slate clients who were struggling with debt without dedicated help, 1 in 4 were not opening their post, suggesting many people have not seen the vouchers.
• We hear that, due to recent mild weather, some Clean Slate clients have been saving their vouchers for when it is colder, without realising the vouchers had an expiry date. We have also heard some people are waiting to use up the credit they have left before topping up.
• ​In a June 2022 report, the Centre for Social Justice shows almost half of individuals – 46 per cent – who have suffered from financial problems said that low money management skills played a part. 

2. Failure in systems and communication 

• Work and Pensions secretary Mel Stride admitted to a ‘blockage’ getting vouchers to some households.
• ​On 27 September 2022 Ofgem published its Market Compliance Review of how energy suppliers help customers in payment difficulties and has found issues ranging from minor through to severe weaknesses, or failings. This is reflected in feedback from Clean Slate clients who tell us they often struggle to make contact with their suppliers, with many experiencing long delays on helplines, and any follow up is often protracted.

Jeff Mitchell, Founder and Managing Director of Clean Slate and Quids in! said: “It’s good to see some added flexibility and we’ll be encouraging consumers to speak up if they’re worried about missing out. This is not easy for many people on low incomes. It is essential that those on old-style prepayment meters and most in need of support with energy bills are not disadvantaged further. 

“Complicated and inadequate systems fail to take into account how overwhelming things are and the lower levels of financial confidence that frequently come with managing life on a very low income.”