TL;DR
- British Gas pay as you go is the prepayment meter (PPM) service. Most newly installed PPMs are smart-meter variants that top up through an app, by text, or at a PayPoint or Post Office.
- Ofgem levelled the prepayment cap with the direct debit cap from 1 April 2024. PPM customers pay broadly the same unit rates as credit customers, ending a long-standing premium.
- British Gas was suspended from force-fitting PPMs in February 2023 following The Times investigation. New Ofgem rules in March 2024 require additional safeguards for vulnerable customers before any forced switch.
- Customers can request a switch from prepayment to credit billing once a credit check is passed. This right was strengthened by Ofgem in June 2023.
- Emergency credit on smart PPMs is typically £15. Friendly hours rules prevent self-disconnection at night, weekends, and during cold weather alerts.
Last reviewed: May 2026
British Gas is the largest UK prepayment supplier by customer count. The service is functional, the rates are now levelled with credit billing, and the smart PPM hardware has improved significantly since 2022. The reputational damage from the 2022-23 force-fit scandal is the long shadow that still shapes the customer experience. Most prepayment customers today are on smart PPMs operating broadly as well as direct-debit accounts. The exceptions are the cases that prove how the system can still go wrong.
How British Gas prepayment works
Prepayment customers pay for energy before they use it. The meter holds a credit balance; consumption draws it down. When the balance reaches zero the supply can self-disconnect, subject to friendly hours rules. Customers top up through the British Gas app, by text message, online, at PayPoint, or at a Post Office counter.
Smart PPMs (SMETS2 prepayment variants) update the credit balance instantly when a top-up is processed. Older key meters (gas) and card meters (electricity) require the customer to physically take a key or card to a top-up point, recharge it, return home, and insert it in the meter. Most British Gas legacy key and card meters have been replaced over 2024-25 as part of the wider Smart Meter Implementation Programme.
The catch is the residual legacy estate. As of Q4 2025 statistics published by DESNZ, around 12% of British Gas prepayment customers were still on legacy key or card meters, mainly in regions where smart meter rollout has lagged.
The cap levelling and what it changed
Until April 2024, PPM customers paid a small premium over direct debit customers on the Ofgem cap, reflecting the higher cost-to-serve. The premium was typically £30 to £60 per year. Ofgem levelled the cap from 1 April 2024 under the Cost-of-Living plan announced in November 2023.
Levelled rates mean a PPM customer on British Gas pays the same unit rate and standing charge as a direct debit customer for the equivalent tariff. For Q1 2026, the PPM cap rates are approximately 26.96p per kWh electricity and 7.01p per kWh gas, with standing charges at the regional cap level.
The change ended a long-running grievance among prepayment customers. PPM users tend to be on lower incomes and were paying the highest unit rates; the levelling addressed that directly.
The levelling does not change the underlying tariff structure. Prepayment customers cannot access most of the cheap fixed deals available to direct debit customers. They are on a separate prepayment-specific standard variable.
The force-fit scandal and what changed afterwards
In February 2023 The Times published an undercover investigation that found British Gas contractors had been force-fitting PPMs at properties belonging to vulnerable customers, including some with disabilities and serious medical conditions. The investigation led to British Gas suspending all force-fit warrant applications, an Ofgem investigation, and the supplier paying compensation to affected customers.
Ofgem issued new force-fit rules in March 2024. Suppliers must now run a vulnerability assessment before applying for a court warrant, refer cases involving Priority Services Register customers to internal review, and pause any installation where the customer has not been contacted directly. Customers under 16, over 75, on the PSR, or with documented vulnerabilities are protected against force-fitting under most circumstances.
British Gas has reinstated force-fit capability subject to the new rules but uses it at a much lower volume than before 2023. The 2024-25 figures show a force-fit rate of roughly 4 per 10,000 PPM accounts, down from over 50 per 10,000 in 2022.
For customers in arrears on a credit account, the British Gas approach has shifted toward repayment plans and Warm Home Discount eligibility checks rather than PPM force-fits as the default escalation path.
Top-up methods and what works
Smart PPM customers have four top-up options. The British Gas app is the primary route: top up in 30 seconds with a registered card. Text message top-up: send a balance amount to a short code. Online via the British Gas website. In-person at PayPoint (over 28,000 UK locations) or Post Office (over 11,000 branches).
| Top-up method | Speed to balance | Minimum top-up | Notes |
|---|---|---|---|
| App / online | Instant | £1 | Most common method |
| Text message | 1 to 5 minutes | £5 | Requires registered card on file |
| PayPoint counter | Instant (smart meter) or via key/card (legacy) | £1 | Most accessible for cash customers |
| Post Office counter | Instant or key/card | £1 | Useful where PayPoint coverage is thin |
The app remains the most popular method, accounting for around 65% of smart PPM top-ups in British Gas's 2025 customer service data. Cash top-ups at PayPoint are still important for the customer cohort without bank accounts or with limited app access.
Emergency credit and friendly hours
Smart PPMs offer emergency credit. When the balance falls below a threshold (typically £3) the meter offers an additional emergency tranche, usually £15. The customer accepts by pressing a button on the meter or via the app. The emergency credit is repaid from the next top-up.
The Ofgem friendly hours rules, in force since 2023, prevent self-disconnection at certain times. The meter cannot disconnect overnight (8pm to 8am on weekdays), at weekends, or on bank holidays. During Cold Weather Alerts triggered by the Met Office, the friendly hours extend for the duration of the alert.
This regime is designed to prevent vulnerable customers losing supply outside normal hours when top-up support is harder to access. The rule does not eliminate self-disconnection; it just shifts when it can happen.
The catch is standing charge accrual. The standing charge applies whether or not the customer uses energy. A PPM that sits with no top-up for two weeks still accrues two weeks of standing charge debt, which is deducted from the next top-up before any credit is available for consumption.
Moving from prepayment to credit billing
Since June 2023, customers have a strengthened right to request a switch from prepayment to credit billing. The supplier must offer the switch unless a credit check fails or the customer has a recent history of significant arrears.
British Gas's published process is: submit a request through the app or customer service line, complete a credit check (using a credit reference agency), and the meter is reconfigured to credit mode remotely if the check passes. For legacy key/card meters, a physical engineer visit is required to swap the meter for a credit-mode SMETS2.
The process typically takes 2 to 6 weeks from request. Customers in arrears can be offered a managed repayment plan as an intermediate step before the credit mode switch.
This route is the long-term path off prepayment. Most customers stay on PPM because they prefer the budgeting control rather than because they cannot switch.
When British Gas PAYG works and when it does not
British Gas PAYG works well for customers who actively choose prepayment for budgeting reasons, who can top up regularly, who have a smart PPM, and who use the app to monitor balance and consumption. For these customers the levelled cap means they are no longer paying a premium over credit, the friendly hours give protection against unexpected disconnection, and the top-up options are accessible.
It works less well for customers force-fitted into PPM under earlier rules (though the cohort is now much smaller), for customers on legacy key or card meters where top-up logistics are awkward, and for customers in remote areas where the nearest PayPoint or Post Office is many miles away.
For customers who would qualify for credit billing but stayed on PPM through inertia, the switch route is straightforward and worth taking. Credit billing also unlocks access to fixed tariffs that PPM customers cannot reach.
The legacy meter cohort and the planned end-state
Approximately 12% of British Gas PPM customers still hold legacy key or card meters as of Q4 2025. These devices use mechanical or older electronic infrastructure rather than the SMETS2 smart standard. The customer experience is materially different: physical top-up at PayPoint or Post Office, key or card insertion at home, no app-based balance monitoring.
The Ofgem rollout deadline for prepayment smart meters has been extended several times. The current target, set in the Ofgem 2025 Smart Meter Programme Refresh, is for all PPM customers to be on smart meters by end-2027. British Gas, as the largest PPM supplier, accounts for the largest single share of the remaining legacy estate.
The supplier's published 2026 plan is to replace 50% of remaining legacy PPMs by year-end through proactive engineer visits and scheduled replacements. Customers who would prefer to wait can decline, but the supplier increasingly encourages the swap because legacy meter maintenance is expensive.
For customers on a legacy PPM in 2026, the swap to smart PPM is free and takes around 90 minutes. The customer should book the appointment when the supplier offers it, particularly if the meter has had any reliability issues. The smart PPM is a meaningful improvement on customer experience: app-based top-up, balance visibility, friendly hours protection that the legacy meters do not consistently apply.
Editorial disclaimer. Kaeltripton is an independent UK finance publisher. This article is general information for UK adults making their own decisions, not regulated financial advice. Prepayment rules, cap levels, and supplier obligations change. Figures reflect British Gas, Ofgem, and DESNZ publications dated before the last-reviewed date at the top of this page. For complaints, refunds, or vulnerable-customer protection the formal route runs through the supplier first and then the Energy Ombudsman.
FAQ
Is British Gas prepayment more expensive than direct debit?
No, since 1 April 2024. Ofgem levelled the prepayment cap with the direct debit cap. PPM customers pay broadly the same rates as credit customers for the standard variable.
Can British Gas force-fit a PPM at a home?
Only under the post-2024 Ofgem rules. The supplier must run a vulnerability assessment, attempt direct contact, and obtain a court warrant. Vulnerable customers are largely protected.
What happens when credit runs out at night?
The smart PPM cannot self-disconnect overnight under the Ofgem friendly hours rule. The supply continues; the customer is expected to top up the next morning.
How does a customer move off prepayment?
Request a switch to credit billing through the British Gas app or by phone. The supplier runs a credit check. If passed, the meter is reconfigured remotely or replaced with a credit-mode SMETS2.
Are fixed tariffs available on prepayment?
Most British Gas fixed tariffs are direct-debit-only. Prepayment customers are typically restricted to the prepayment standard variable. Moving to credit unlocks fixed tariff options.
Does the friendly hours rule apply to legacy key and card meters?
Partially. Legacy meters do not have the smart-meter remote disconnect capability; in practice they cannot self-disconnect outside friendly hours but the customer must still top up to maintain supply.