Grant Shapps has launched a crackdown on energy suppliers, following reports some are not doing enough to support vulnerable customers amid the cost of living crisis.
The Business and Energy Secretary has written a letter to energy suppliers, telling them to stop the practice of forced fitting prepayment meters as the answer to families struggling to pay their bills, following a huge surge of cases.
He has asked them to share data on the number of warrants they have requested for this purpose in order to name and shame the worst offenders.
Mr Shapps said he wants to see much greater efforts from suppliers to help consumers in payment difficulties before leaping to the extreme of forced prepayment switching, such as offers of additional credit, debt forgiveness or tools such as debt advice.
He has also asked suppliers to discuss possible further action they can take to support customers and avoid forced fitting.
The crackdown is part of a drive to increase transparency around prepayment meter installations in a bid to track down the worst culprits and reveal which energy companies are trigger-happy in applying for them.
It comes as courts are being overwhelmed with an increasing number of applications for warrants, with reports that huge batches are being approved in a matter of minutes.
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The business secretary is working with Ofgem and the Secretary of State for Justice to ensure that the process by which suppliers bring these cases to court is fair, transparent and supports vulnerable customers.
Mr Shapps said: “Suppliers are clearly jumping the gun and moving at-risk customers onto prepayment meters before offering them the support they are entitled to – I simply cannot believe that every possible alternative has been exhausted in all these cases.”
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He said he is “deeply concerned” to hear customers are being switched to prepayment meters against their will, with some disconnected from supply – and “quite literally left in the dark”.
“Rather than immediately reaching for a new way to extract money out of customers, I want suppliers to stop this practice and lend a more sympathetic ear, offering the kind of forbearance and support that a vulnerable customer struggling to pay should be able to expect,” he added.
Concerns have also been raised over the low number of vouchers being redeemed under the government’s Energy Bills Support Scheme – resulting in many vulnerable households not having cash knocked off their energy bills.
Prepayment meters let customers pay for gas and electricity on a pay-as-you-go basis, and can help with the avoidance of debt and court action. A moratorium on forced prepayment switching could prompt an increase in bailiff action – so the government wishes to avoid going down this route.
Mr Shapps has also written to energy regulator Ofgem asking what they do more to make sure suppliers protect vulnerable consumers, from revisiting their approach to enforcing supplier compliance, to the urgent publication of recent investigations outcomes into vulnerable customers.
The Minister for Energy and Climate Graham Stuart has asked energy suppliers, Ofgem, Energy UK and Citizens Advice to meet with him at the Department for Business, Energy and Industrial Strategy to discuss matters further next week.
When the sun sets on Scunthorpe this Saturday, the town’s steelworks will likely have a new boss – Jonathan Reynolds.
The law that parliament will almost certainly approve this weekend hands the business secretary the powers to direct staff at British Steel, order raw materials and, crucially, keep the blast furnaces at the plant open.
This is not full nationalisation.
But it is an extraordinary step.
The Chinese firm Jingye will – on paper – remain the owner of British Steel.
But the UK state will insert itself into the corporate set-up to legally override the wishes of the multinational company.
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3:23
Govt to take control of steel plant
A form of martial law invoked and applied to private enterprise.
Image: A general view shows British Steel’s Scunthorpe plant.
Pic Reuters
Political figures in Wales are now questioning why nationalisation wasn’t on the table for this site.
The response from government is that the deal was done by the previous Tory administration and the owners of the South Wales site agreed to the terms.
But there is also a sense that this decision over British Steel is being shaped by the domestic and international political context.
Labour came to power promising to revitalise left-behind communities and inject a sense of pride back into places still reeling from the loss of traditional industry.
With that in mind, it would be politically intolerable to see the UK’s last two blast furnaces closed and thousands of jobs lost in a relatively deprived part of the country.
Image: One of the two blast furnaces at British Steel’s Scunthorpe operation
Reform UK’s position of pushing for full and immediate nationalisation is also relevant, given the party is in electoral pursuit of Labour in many parts of the country where decline in manufacturing has been felt most acutely.
The geo-political situation is perhaps more pressing though.
Just look at the strength of the prime minister’s language in his Downing Street address – “our economic and national security are all on the line”.
The government’s reaction to the turmoil caused by President Donald Trump’s pronouncements on tariffs and security has been to emphasise the need to increase domestic resilience in both business and defence.
Becoming the only G7 nation unable to produce virgin steel at a time when globalisation appears to be in retreat hardly fits with that narrative.
It would also present serious practical questions about the ability of the UK to produce steel for defence and the broader switch to green energy production.
Then there is the intriguing subplot around US-China trade.
While this decision is separate from discussions with the White House on tariffs, one can imagine how a UK move to wrestle control of a site of national importance from its Chinese owner might go down with a US president currently engaged in a fierce trade war with Beijing.
This is a remarkable step from the government, but it is more a punctuation mark than a full answer.
The tension between manufacturing and decarbonisation remains, as do the challenges presented by a global economy appearing to fragment significantly.
But one thing is for sure.
As a political parable about changes to traditional industry and the challenges of globalisation, the saga of British Steel is hard to beat.
Teachers in England are once again gearing up for potential strike action after an overwhelming majority of National Education Union (NEU) members rejected the government’s latest pay offer.
In an electronic ballot, 93.7% of respondents turned down the proposed 2.8% pay rise, labelling it inadequate and unfunded.
If the pay offer had been accepted, schools would have had to find the money from existing budgets to pay for the increase – with many saying they are already overstretched.
Some 83% of teachers said they would be willing to take industrial action to secure a better deal.
Image: Daniel Kebede, general secretary of the NEU. Pic: PA
The vote, which included 134,487 teachers in state schools across England (a turnout of 47.2%), was a clear signal that union leaders are not backing down.
In a statement after the vote, Education Secretary Bridget Phillipson said a move towards industrial action by teaching unions “would be indefensible”, given work being done to increase school attendance and urged the NEU to “put children first”.
NEU general secretary Daniel Kebede said years of what he called “real-terms pay cuts” had left the profession in crisis.
He also took aim at the government’s decision not to fund the offer centrally.
“This will only make things worse,” Mr Kebede said. “Our members tell us every day of the desperate state their schools are in due to lack of funding.”
The union says the offer falls below inflation and lags behind private-sector wage growth.
But critics argue strike threats will only cause more damage to students still recovering from the disruption of the pandemic.
The union’s national executive is due to meet at its Harrogate conference next week, and all eyes will be on whether full-blown strike action will be announced.
Those unfamiliar with Scotland’s so-called ‘ferry fiasco’ would barely believe it is a true story.
The new vessels cost quadruple their original price tag, one was delivered seven years late, the other is still being built, and both are too big to fit the main harbour for their daily journeys to and from the Isle of Arran.
But in this latest chapter of the scandal, the unbelievable is very much part of the script. And, as Sky News has been hearing, the consequences are brutal.
“It is completely and utterly nuts,” one exasperated campaigner exclaims as we stand overlooking the deserted Ardrossan Harbour on Scotland’s mainland.
Image: The town has been hit hard by the temporary closure of the harbour
Image: The new ferries are too big for the harbour’s jetty and require an £80m upgrade
Image: Ferries are being diverted along the coast to Troon and locals say businesses in Ardrossan are suffering
Ardrossan, on the Ayrshire coast, has been the main port for the ferry service to and from Arran for decades. It is the quickest, most efficient route.
But the 30-year-old ferry serving the islands for generations is failing and two new bespoke-designed ones were ordered, with them due to enter service from 2017.
Image: Ardrossan has operated a ferry service to and from Arran for decades, as it is the quickest, most efficient route
The original £100m cost ballooned to £400m, the shipyard was bought by taxpayers amid financial crisis, one vessel finally started carrying passengers in January 2025 while the other is still being built.
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And to add insult to injury, both are too big for Ardrossan Harbour’s jetty to cope with and require an £80m upgrade.
In the meantime, services are being diverted along the coast to Troon.
Image: Ardrossan is the innocent victim of several costly blunders linked to the new ferry service
Protest as tensions rise in ‘ghost town’
Ardrossan was promised it would remain the primary port for connectivity to Arran. But now the community is in limbo and is fearing for its future.
Christine Cowie, from Save Ardrossan Harbour, told Sky News: “It is completely and utterly nuts.
“Why anybody would commission a ferry which doesn’t fit the harbour for the route it is meant for is crazy. I cannot understand it at all.
“Ardrossan is like an extension of Arran. A lot of people come here to the dentist and use other businesses they don’t have on the island which are losing money since the ferries have gone away.”
Image: Christine Cowie from Save Ardrossan Harbour says Ardrossan is fearing for its future
A botched design process, mismanagement and a string of costly blunders have given the project the label of one of the biggest procurement disasters in the history of Scottish devolution.
People from Arran are joining Ardrossan campaigners on the mainland for a protest on Saturday. Hundreds are expected to gather as tensions boil over.
The group’s chairwoman Frances Gilmour said Ardrossan has become a “ghost town”.
She said: “It is so quiet. It is spooky. It’s frankly a disgrace. Businesses are suffering.
“Economically, this is the route. This is the economic route. We have the infrastructure. We just need the berths fixed.”
Image: Frances Gilmour thinks Ardrossan has become a ‘ghost town’
The 33-year-old MV Caledonian Isles, which has been away over the winter for extensive repairs, is expected to return to Ardrossan next month. But locals question how reliable and sustainable that vessel is.
On the edge of the once bustling harbour carpark is the Bute MOT garage.
Manager Scott Revans says they rely on customers from Arran previously hopping off the ferry and leaving their car for repairs at their centre.
He told Sky News: “The harbour is a ghost town. We’d get the passing trade doing whatever customers need from batteries to punctures. It has had an impact on us.”
Image: Scott Revans, who manages a garage, has been hit by a drop in passing trade from Arran
Could taxpayers pick up the bill?
Ardrossan Harbour is owned by private company Peel Ports.
The Scottish government is currently exploring buying the port, but the talks are a secret, with campaigners feeling left in the dark.
No one involved in the discussions would answer questions from Sky News about when they expect to alert communities to the next steps.
Image: One of the two new ferries, the Glen Sannox, entered service in January but is too big to fit the main harbour. Pic: PA
A spokesman for the Scottish government agency Transport Scotland said: “We absolutely understand people and communities’ views in favour of retaining Ardrossan as the mainland port and remain committed to ensuring the Arran ferry service is fit for the future.
“The Scottish government has instructed officials… to explore options on purchasing Ardrossan Port.
“We will of course update parliament once there is progress and an outcome to report, however, it would be inappropriate to get in the way of these complex and sensitive discussions.”
Jim McSporran, port director at Peel Ports Clydeport, said: “Peel Ports Group welcomes the Scottish government’s statement that it intends to explore the potential purchase of Ardrossan Harbour.
“Regardless of the outcome of this process, our willingness to invest in the harbour remains steadfast. We take comfort that the port continues to operate this lifeline route and that it remains the port of choice for the people and businesses of Arran and Ardrossan.”