21st
Sep 2022
The government is planning to introduce a new law forcing landlords to pass on the £400 energy discount to their tenants with all-inclusive bill included in monthly rental payments.
When the government first announced its energy support discounts to help with the cost of living, inflation, and energy prices crisis, the usual pack of baying hounds activist groups, charities ( Shelter etc) and politicians immediately raised concerns over whether landlords, whose tenants had an all inclusive bills in their monthly rental payments, would actually pass on the discount to them.
According to the government’s estimates approximately one per cent of households could miss out on receiving the energy rebate and includes tenants with all bills inclusive in rent payments.
The government estimates around one per cent of households will not receive the £400 Energy Bills Support Scheme discount directly, and this includes those ‘bills included’ tenants.
A government statement says: “Additional funding will be made available so that £400 payments will be extended to include people such as park home residents and those tenants whose landlords pay for their energy via a commercial contract. The government is committed to ensuring such households receive the same support for their energy bills. The government will introduce legislation to make sure landlords pass the EBSS discount on to tenants who pay all-inclusive bills.”
However a leading trade association says the new law is unfairly demonising landlords.
A spokesperson for the trade body, says: “Given payments under the support scheme have not begun to be made, the government’s plans to legislate are premature and are demonising landlords unnecessarily. It sends a dangerous and misleading message that landlords cannot be trusted to do the right thing, creating needless fear and anxiety for tenants.
“The reality is that one-off pots of money like this cannot compensate for the fact that the benefits system is systematically failing to protect the most vulnerable tenants. At a time when households finances are being squeezed it makes no sense in housing benefit rates.”
Richard Merrick of PIMS, says: “ Irrespective of the law the energy prices will heavily impact HMO landlords operating inclusive bills in the monthly rent, the £400 rebate is a drop in the ocean, when you house five or more ‘residents’.
“If the law is introduced which is more than likely, it’s only fair that landlords are able to pass on the full energy increases to tenants, especially with the oncoming winter months.”
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