Energy giants should be hit with a windfall tax if they fail to lower their 'rip-off' prepayment tariffs, according to the National Housing Federation (NHF).

The energy firms have repeatedly ignored warnings from ministers to lower their charges to prepayment customers, who already pay up to £330 more for their fuel than those who can access the best deals online.

The Federation, which represents England's housing associations, called for a windfall tax to be levied on the firms unless they lowered their prepayment charges in line with customers paying their bills on a quarterly basis.

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Ruth Davison, Director of Campaigns and Neighbourhoods at the NHF, said: "If the big energy suppliers continue to ignore government warnings to lower their prepayment charges, they should be hit where it hurts in their pockets.

"It's a scandal that the nation's poorest households are forced to pay the highest bills, and a windfall tax may finally hammer home the message to the energy firms that they cannot keep ripping off their prepayment meter customers.

"Any tax revenues should be spent directly on helping low income groups pay for their soaring fuel bills and the government also needs to ban energy suppliers from charging prepayment meter customers a premium for their energy.

"If they fail to act, tens of thousands of households will be plunged into fuel poverty this winter."

(CD/JM)