Government will bring in a law to force landlords to split £400 energy rebate

Government will bring in a law to force landlords to split £400 energy rebate

8:01 AM, 14th October 2022, About 2 years ago 38

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The government has updated its guidance on how the Energy Bills Support Scheme will hand £400 to tenants who have an all-inclusive rent agreement.

They also reveal that legislation will be brought forward to make landlords pass on the energy bill savings.

The Energy Price Guarantee started on 1 October to help reduce the unit cost of gas and electricity so a typical household will pay, on average, around £2,500 on their energy bill a year – for the next two years.

However, the savings per property will be based on usage and the average household will save around £1,000 per year.

When the scheme was announced, various charities and housing organisations, including Shelter, demanded that the government make landlords hand over the money to their tenants.

Actual savings and bills could be lower or higher

The government makes clear that the actual savings and bills could be lower or higher depending on usage, as well as the size of the home, how it is insulated, how much energy is being used and how many people are living there.

The scheme sees £400 being paid in six monthly instalments directly to the energy supplier.

In addition, the most vulnerable households will receive £1,200 of support if they receive certain benefits.

Now, the new guidance makes clear how the £400 discount will be applied for those without direct domestic electricity connection and those living in park homes.

Tenants who pay for their energy as part of their rent

This is what the updated guidance says about tenants who pay for their energy as part of their rent:

Your landlord will benefit from the Energy Price Guarantee if they have a domestic electricity and/or gas contract with a licensed electricity and/or gas supplier and should reflect this in the price they charge you from 1 October.

Similarly, they will receive the Energy Bills Support Scheme and should pass it on to you. We will act now to introduce legislation to ensure this happens.

Your landlord should pass on the discount irrespective of how you pay for your energy use.

If they charge you based on your usage, they must do this at the same price as they pay, including the Energy Price Guarantee (see Ofgem’s guidance on ensuring customers are being charged no more than they should).

If, on the other hand, you pay an ‘all-inclusive’ rent incorporating a fixed charge for energy use, your landlord should pass the Energy Price Guarantee and Energy Bills Support Scheme benefits to you if provided for in your tenancy agreement.

If your landlord has a non-domestic contract, they will benefit from the Energy Bill Relief Scheme and should pass the savings on to you.

In addition to making the rules for landlords and letting agents clearer, there was some confusion when the scheme was unveiled as to whether the government would bring in legislation to enforce the rules – and now the updated guidance makes clear that a law will be introduced to compel landlords with all-inclusive tenancies to pass on the scheme’s savings.


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Comments

Mike

20:06 PM, 15th October 2022, About 2 years ago

It is not a rocket science, if a landlord has not put up any rent since Government proposed this £400 help, as a result of higher energy prices then any rebate is landlords to keep none belongs to any tenants. Its quite simple logic, so please don't start saying we now got to pay for our tenants food and clothing and shoes and petrol bills and provide them free holidays, we might as well get rid of freebie tenants and sell our house. no can do and will not do if this law comes it must be u-turned just as recent example of our new chancellor.
I am so glad that I put my rent up from April 2022, and the help promised came after, so now I will be keeping that money in my pocket. It is 100% mine and not the tenants. I pay the frigging bills.

Harlequin

20:09 PM, 15th October 2022, About 2 years ago

We didn't get the new prices until the 1st of October - what on earth were we to do, those who were not psychic.

Harlequin

20:10 PM, 15th October 2022, About 2 years ago

Reply to the comment left by The Forever Tenant at 14/10/2022 - 18:10
Didn't get new rates until 1st October.

Dennis Thompson

17:36 PM, 7th November 2022, About 2 years ago

Reply to the comment left by Harlequin Garden at 14/10/2022 - 11:00
My landlord increase my rent to take into account of the increase along with the other 9 tenants in the block by £60 per month at the very start of September,and since the £400 was promised to EVERY HOUSEHOLD,surely it should come directly the HOUSEHOLD and not the landlord only ??

Harlequin

9:07 AM, 8th November 2022, About 2 years ago

Reply to the comment left by Dennis Thompson at 07/11/2022 - 17:36
It goes to the account holder - if it was every household by HMO reasoning there would be numerous payouts as an HMO is made up of a number of 'households' - it's a mess, and the only people suffering are the landlords, landlords will just get out of the market and leave the tenants high and dry with rising rents - badly thought out and not the first time.

Tony Clements

16:19 PM, 10th December 2022, About A year ago

Reply to the comment left by Dennis Thompson at 07/11/2022 - 17:36
Our HMO energy bill DD has more than doubled and due to go up again Jan and Apr. Please explain whwere the £66 a month rebate is a plus to the LL and should be repaid. Obviously rather than put the rent up once in a blue moon I need to do it no matter what in anticipation.

Harlequin

16:35 PM, 10th December 2022, About A year ago

Reply to the comment left by Tony Clements at 10/12/2022 - 16:19
Usual government lack of understanding of the real world - they won't be happy until all LLs are out of the market and we can stand back and watch them deal with the chaos they created through their inept behaviour/complete ignorance about what goes on in the world.
Thankfully I put a key meter in for electricity a number of years ago - I give them a budget per month and they have to make up the rest - I'm however open on the gas and that is a massive headache. Tenants think you control the weather - they are cold, well so am I.
Give billions to rogues for 'hotels' (haha) to house the refuges/immigrants? - that will soon come unstuck as all their other mindless schemes have - who helped out the landlords during Covid - oh that's right, no one, who helped out tenants during Covid - oh that's right, their landlord. I think we will be missed when the time comes that we're giving up handing back.
I'm now replacing 10 doors for 'fire doors' (with signs on just incase my tenants don't know how to leave their rooms, couldn't make that one up) the doors were fine 5 years ago, I have to fill in the key holes that have no locks in them (left over from changing to thumblocks) incase they lock someone in their room - with no key or lock, I do wonder what I'm dealing with, and on a door that I've been told to remove and replace with another.
4 double sockets in each bedroom, they've been happy enough with 3 doubles for 20 years and who can afford to put plugs in now? I don't have 4 doubles in my bedroom. Complete and utter madness.
Write to your MP and get the response 'I don't deal with housing', write to the S of S for housing - won't take the email as I'm not his constituent.
Don't get me started on cladding, have more than 3 flats and you pay for the fire stopping works that should have been done by the developer.
Sorry, but this is more than the energy support, it's complete and utter lack of support for one of the most important industries we have - homes.

Rob Crawford

23:14 PM, 7th March 2023, About A year ago

I calculated an increase in most of my rents last year in September against CPI that was a 10.1% increase over the previous 12 months. Even so I only increased my bills inc HMO rents by a max of 5%. As this calculation was based on historic data (not forecast data), an increase due to anticipated energy increase was not included. This will be considered within CPI stats next September for the next rent increase. If I am forced to flow down the £400 received Energy Bills Support Scheme, this will be taken into consideration. In the long term tenants will loose out. The EBSS will stop, but increased rent carries on! Of course the £400 landlords receive will be treated as income tax and hence will be reduced by 20 or 40%, yet we are expected to flow down the full amount. We would be better off declining the EBSS contribution and to let tenants apply for it direct! Do we have to accept the £400? Has there been any further clarification since the last December post?

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