British Gas Pay As You Go Explained

British Gas pay as you go is a prepayment energy tariff where you top up your gas and electricity before you use it, rather than being billed afterwards. From 1 July to 30 September 2026, prepayment costs are capped by Ofgem at around £1,620 a year for a household with typical use, so no British Gas prepayment customer pays above the regulated unit rates and standing charge for that period.

Prepayment used to carry a “poverty premium”, but since April 2023 the prepayment price cap has been aligned close to the standard direct debit cap. That levelled the playing field on unit rates, though a well-chosen fixed direct debit deal can still work out cheaper than any variable prepayment tariff.

Free Price Compare sources the figures below from Ofgem, British Gas and gov.uk. This explainer covers what you pay per kWh, where to top up, how emergency credit works, and when switching away from prepayment is worth it for a bill-conscious household.

Last updated: August 2026

Written by the Free Price Compare editorial team | Reviewed August 2026

How British Gas pay as you go actually works

British Gas pay as you go is a prepayment tariff that charges you for gas and electricity in advance, so you add credit to your meter and it draws down as you use energy. The tariff is variable, carries no exit fee, and its unit rates and standing charge are limited by Ofgem’s prepayment price cap. When you first switch to British Gas you are placed on this pay as you go tariff automatically if you have prepayment meters, and once your account is active you can ask to move to a credit meter or explore other plans. There are two versions: a traditional prepayment meter you top up with a physical gas card or electricity key, and a smart pay as you go meter that lets you top up through the British Gas app or online.

Prepayment suits some households well, particularly anyone who wants tight control over spending or is managing a limited budget week to week. It removes the risk of a surprise bill, because you cannot use energy you have not already paid for. The trade-off is a narrower choice of tariffs and, historically, higher costs, though the Ofgem price cap now keeps prepayment unit rates close to those on standard direct debit.

How much does British Gas pay as you go cost per kWh?

British Gas pay as you go charges the Ofgem prepayment cap unit rates, which sit fractionally below the standard direct debit cap. For the direct debit cap covering 1 July to 30 September 2026, Ofgem set electricity at 26.11p per kWh with a 57.19p daily standing charge, and gas at 7.33p per kWh with a 29.04p daily standing charge (national average, including 5% VAT). Prepayment rates track just under these, which is why the prepayment cap works out at around £1,620 a year on typical use versus £1,663 for direct debit over the same period. Your exact rate depends on your region and meter type, and the pence-per-unit figures matter far more than the headline annual figure, which simply assumes an average level of use.

British Gas quotes region-specific prepayment rates on your account and in the app, so check those for your own postcode rather than relying on a national average. Because the tariff is variable, your unit rates change each time Ofgem revises the cap, currently every three months. If you want to see how prepayment stacks up against billed tariffs, it helps to compare energy prices across payment methods before deciding.

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Is the prepayment price cap really cheaper than direct debit?

The prepayment price cap is slightly cheaper on paper than the standard direct debit cap, sitting at around £1,620 a year for typical use compared with £1,663 for direct debit over 1 July to 30 September 2026 (Ofgem). One reason is that pay as you go rates are, on average, a touch below variable direct debit rates. That does not make prepayment the cheapest way to buy energy overall. Fixed direct debit tariffs are frequently priced below the price cap, and prepayment customers have far fewer of those fixed deals to choose from.

For a bill-conscious household, the practical question is whether the certainty of prepayment is worth giving up access to cheaper fixed deals. If you can manage a monthly direct debit, comparing a fixed billed tariff against the prepayment cap usually reveals a saving. If you value paying as you go and never running up a debt, prepayment at the capped rate remains a fair deal since the historic premium ended in April 2023. Our guide on the energy price cap versus a fixed tariff explains the maths in more detail.

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Where can I top up my British Gas pay as you go meter?

You can top up a traditional British Gas prepayment meter at any Payzone outlet or Post Office by presenting your gas card or electricity key, then inserting it into your meter to transfer the credit. Thousands of shops display the Payzone logo, so most people have somewhere within walking distance. If you have a smart pay as you go meter, you also have faster options: top up through the British Gas app, online in your account, or by phone, with the credit sent to your meter without needing to insert a physical card or key.

Smart pay as you go now supports Apple Pay and Google Pay, and lets you track your balance and set low-balance alerts so you know when to top up before you run out. This removes the need to visit a shop and is one reason smart prepayment has become the preferred route for most prepayment households.

• Traditional meter: top up at a Payzone shop or Post Office with your gas card or electricity key, then insert it into the meter.
• Smart pay as you go: top up via the British Gas app, online, Apple Pay or Google Pay, with credit applied without a shop visit.
• Always keep a small emergency top-up in reserve during cold spells so your heating does not cut out unexpectedly.

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How does emergency credit and Friendly Credit work?

British Gas pay as you go includes £5 of emergency credit you can activate when your balance runs low, plus Friendly Credit that keeps you on supply during times you may not be able to top up. Emergency credit is a short-term loan from your meter: once you use it, the amount is repaid automatically from your next top-up, along with any standing charge that built up while your balance was empty. Friendly Credit stops your supply from cutting off overnight, on Sundays and on bank holidays, so you are not left without power at times when shops are closed or top-ups are harder.

The important point on repayment is that emergency credit and any debt for standing charges are deducted from your next top-up before the rest is added to your usable balance. If you have used all your emergency credit and the standing charge has accumulated, your first top-up after that may seem to disappear quickly because it clears what you owe first. Topping up a little more than usual after an empty period avoids running straight back into emergency credit.

How do I get a replacement gas card or electricity key?

Order a replacement British Gas gas card or electricity key by contacting the British Gas pay as you go team, who can post a new one to you, usually within a few working days. The dedicated prepayment line is 0330 100 0303, open Monday to Friday from 8am to 8pm. You can also request a replacement through your online account. If you run low on credit while waiting for a new card or key to arrive, ask British Gas whether they can arrange a temporary top-up method or add emergency support so you are not left off supply.

Smart pay as you go customers rarely need physical cards, since top-ups go straight to the meter through the app or online. If you are moving from a traditional prepayment meter to a smart one, British Gas can arrange the meter exchange, which also get access tos app-based top-ups and low-balance alerts. Our British Gas smart meter guide covers what to expect from that switch.

Can I switch away from British Gas pay as you go?

Yes, you can switch away from British Gas pay as you go as long as you owe no more than £500 for gas or no more than £500 for electricity, under Ofgem’s Debt Assignment Protocol. That protocol lets you carry up to £500 of debt per fuel across to a new supplier when you move, so a manageable balance does not trap you on prepayment. British Gas has no exit fee on its pay as you go tariff, so you are free to leave once any switch conditions are met. Switching to another supplier or moving from prepayment to a credit meter usually takes a few working days.

Moving off prepayment often opens up cheaper fixed direct debit deals that are not available to prepayment customers. If you switch to a credit meter, you can then compare the full market. Before you leave, check whether you would pay less on a fixed billed tariff than on the prepayment cap, and confirm any outstanding balance. Our British Gas switching guide walks through the steps, and you can also weigh up rivals directly, such as in our British Gas versus EDF comparison.

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Are there fixed British Gas pay as you go tariffs?

Fixed prepayment tariffs are extremely rare across the whole UK market, with only a small number of suppliers offering them as of 2026, and most prepayment customers remain on a variable cap-linked tariff. British Gas pay as you go is a variable tariff, so its rates move each time Ofgem updates the price cap. For most prepayment households, the realistic choice is between a variable smart pay as you go tariff and switching to a credit meter to access fixed direct debit deals. Smart pay as you go variants generally sit a fraction below the cap and add app-based top-ups, real-time balance tracking and instant emergency credit.

Because fixed prepayment deals are so limited, price certainty for prepayment usually means the cap itself, which changes quarterly rather than being locked for a year. If long-term price certainty matters to you, moving to a credit meter and choosing a fixed tariff is the more reliable route. You can review the current cheapest gas tariffs to see what fixed pricing looks like against the cap.

The prepayment meter compensation scheme: are you owed money?

British Gas agreed in 2026 to pay up to £112 million in compensation after Ofgem found the supplier had wrongly installed prepayment meters in some customers’ homes between 2018 and 2021. Households forced onto a prepayment meter during that window may be entitled to compensation or to have outstanding energy debt written off. British Gas was given 12 months to identify and contact affected customers, so if you had a meter installed under warrant or without proper checks in that period, it is worth confirming your case directly with British Gas rather than waiting to be contacted.

If you are struggling to pay now, support exists beyond the compensation scheme. The Warm Home Discount, the Priority Services Register for extra help, Cold Weather Payments and the British Gas Energy Trust can all reduce pressure. gov.uk and Citizens Advice set out eligibility for the government schemes, and no supplier can move you onto involuntary prepayment without following Ofgem’s protections.

What is changing with energy prices for winter 2026?

Energy prices for winter 2026 are expected to shift when Ofgem sets the October to December price cap, with independent analysts forecasting a typical dual-fuel bill in the region of £1,701 to £1,747 a year, up from the £1,663 direct debit figure for the summer quarter. The October cap level is calculated from wholesale and other costs observed during a fixed assessment window earlier in the year, and prepayment rates will move in line with it. A government cut to VAT on electricity is also due to take effect from 1 October 2026, which is expected to reduce the average electricity element of bills modestly, softening some of the forecast rise.

For prepayment customers, a rising cap means each top-up buys slightly less energy over winter, so budgeting and keeping an emergency reserve become more important. Because these figures are forecasts and cap levels change each quarter, check the latest Ofgem announcement before making decisions. If a fixed deal available on a credit meter is priced below the winter cap forecast, switching could lock in savings ahead of colder months.

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Information correct as of 24 August 2026. Prices, tariffs, policy details and providers change frequently, so please check the latest details before making a decision. This article is for general information only and does not constitute financial advice. Free Price Compare is authorised and regulated by the Financial Conduct Authority (FCA).