British Gas increase to minimum meter top up from £1 to £5, days before Christmas ‘socially irresponsible’

‘This decision increases the likelihood parents and pensioners will have to make the impossible decision between food and fuel,’ say experts

Pensioners on low incomes may not be able to afford to heat their homes, campaigners warn (iStock)

People living in poverty will struggle to heat their homes and cook food after British Gas raised the minimum top-up amount for pre-pay meters, charities have warned.

From New Year’s Day, customers on pay-as-you-go tariffs will no longer be able to put just £1 on their meters, but will have to put at least £5 on.

They will also be forced to top up in whole pounds, scrapping the facility to add smaller sums.

At the moment, people on low incomes can top up with small sums to tide them over until pay day.

The changes will affect more than five million homes that have pre-payment meters, most of which use the system because they failed to keep up with payments, according to the Money Advice Service.

One anti-poverty charity called on British Gas to reverse the move announced just days before Christmas, saying children, the elderly and vulnerable people could be forced to choose between food and fuel.

In addition to the top-up change, pre-pay customers will have 4,000 fewer terminals across the UK to top up at after the gas giant last month announced it was switching from PayPoint to Payzone and post offices.

There are 28,000 PayPoint terminals, but the Post Office and Payzone have 24,000 between them.

Sian Williams, director of policy at anti-poverty charity Toynbee Hall, told The Independent: “British Gas’s socially irresponsible decision comes at the most financially pressured time of year.

“For families on tight margins and low incomes, being able to top up their meter with what little money they have is essential to keep safe and warm.

“This decision risks children, older people and other vulnerable people being left in the cold and dark, and increases the likelihood parents and pensioners will have to make the impossible decision between food and fuel.

“We urge British Gas to do the right thing and reverse this decision immediately.”

Streets Kitchen, a homeless charity, said the rise would hit the poorest hardest this winter.

“Some people don’t have £5, which means they’ll have nothing to put on their meter in an emergency,” the charity said, adding that 16 million people in the UK had less than £100 in savings.

“Those who only have a few quid to their name until pay day will no longer be able to top up their payment meter.

“Poverty is expensive, and pre-pay meters are more costly than contracts,” Streets Kitchen tweeted.

Kath Hopkins, a money adviser, wrote: “This will mean not being able to cook a hot meal, have a bath or turn the heating on for too many vulnerable people.”

One customer tweeted sarcastically: “Really great time of year to introduce this, cheers British Gas.”

A British Gas spokeswoman said the change had been made in part because of rising transaction costs, and in line with competitors, who also have a “minimum vend policy”.

“We are working closely with Payzone to ensure we meet the demands of our customers,” she said. “We have undertaken an analysis of the areas impacted by the change and Payzone has committed to work with British Gas to increase its reach in areas where we foresee we will need additional services.

“We are also working with Citizens Advice to help address any uncertainty regarding the new service and clarify any questions consumers may have.”

The company can offer discretionary credit to those in financial hardship and has set up the British Gas Energy Trust as an independent charity offering advice and grants to people struggling to pay their bills, she added.