Households on prepayment meters are seeing up to 90% of their gas top-ups going on repaying debt as they head into the winter months, figures show.

Almost 300,000 households had their gas and electricity prepayment meters set to recover debt when they top up in the first quarter of this year, according to Ofgem data obtained via a Freedom of Information request.

The data collected by debt help website DebtBuffer.com shows that there has been a 43% jump in gas prepayment customers having their meters set to repay debts over the two years to the first quarter of this year, while there has been a 30% increase in electricity prepayment customers repaying debt over the same period.

This analysis shows how incredibly harsh prepayment meters can be

Those customers who fall into arrears on their agreed weekly debt repayments or use “emergency credit” are facing up to 100% of their electricity top ups and 90% of their gas top ups being used to clear their accounts before they can heat their homes.

DebtBuffer urged households against being tempted to stop paying their direct debits following October’s increased price cap “at any cost” to avoid being placed on prepayment meters.

It said the data suggested hundreds of thousands of struggling UK households were facing a situation where the “cocktail of higher energy prices, combined with any arrears automatically deducted from whatever they can afford to top-up, will leave them with even less money for their energy needs and a spiral of debt many will find difficult to escape”.

DebtBuffer investigated how the UK’s biggest energy suppliers charged their prepayment customers to claw back emergency credit and repayment arrears.

Bulb’s website shows it takes 30% of gas top-ups and 100% of electricity top-ups from customers with prepayment meters set to collect debt, while British Gas takes 90% of gas top ups and 100% of electricity top ups from indebted prepayment customers.

EDF, Octopus, Scottish Power, SSE and E.On all take 70% of gas top ups and 100% of electricity top ups.

To automatically deduct 100% of any electricity arrears and up to 90% of any gas arrears before any credit can be used to heat or power households is simply not good enough. In fact, it borders on callous.

The British Gas website explains repaying debt through prepayment meters, stating: “If you don’t top up enough to pay us back, don’t worry, we won’t leave you without any gas or electricity. When you top up, we’ll take 90% to pay towards your debt and leave 10% for your gas. For example, if your agreed weekly amount is £10 and you top up £10, we’ll put £9 towards your debt and leave you £1 for gas. You’ll still owe us £1, which we’ll take next time you top up that week.”

Heather Rose, head of debt help at DebtBuffer, said: “This analysis shows how incredibly harsh prepayment meters can be for customers who end up falling into arrears on any agreed weekly payments for debts or get into additional debt by having to make regular use of emergency credit.

“To automatically deduct 100% of any electricity arrears and up to 90% of any gas arrears before any credit can be used to heat or power households is simply not good enough. In fact, it borders on callous.

“According to Ofgem data, the average repayment term for prepayment customers with meters set to recover debt is 247 weeks.

“Ofgem needs to take firm action to prevent these impacted households being in a permanent debt spiral because of these high claw backs, and being totally unable to afford energy.”

Ms Rose added: “We are urging people to ignore any calls for non-payment of bills or mass social media-promoted boycotts you might see.

“That will be the fastest way to a default on your credit file, followed by court action with a county court judgement for payment, which means bailiffs at your door and also court action to forcibly install a prepayment meter.”

A spokesman for Energy UK, which represents suppliers, said: “Suppliers have to make decisions on how they recover debt from prepayment customers while being conscious of the need for them to stay on-supply. They have a duty to try and prevent customers falling further into arrears but also have to take account of their ability to pay.

“So if customers are finding it very difficult to clear any existing debt then suppliers can take that into account when setting repayment plans – and any customer in this situation should get in contact.

“Ultimately if debt isn’t repaid then those costs need to be recouped elsewhere. The industry is very aware that many customers are already struggling to pay their bills and with further rises around the corner, it’s inevitable that more will fall into arrears which is why we have called for the Government to increase the support it provides to customers over the next few months.”