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Edinburgh Live
Edinburgh Live
World
Katie Williams

Renters issued warning as millions might miss out on £400 winter energy payment

Renters have been issued a warning as thousands could miss out on the £400 energy discount from the UK Government.

Charities are warning that over 500,000 people renting could not benefit from the payout as the average energy bill is set to hit £3,600 a year. While many will receive the discount automatically or by vouchers, those who don't pay energy bills directly have been issued a word of caution.

As the BBC reports, Shelter has highlighted the rebate will be issued to landlords rather than tenants in the cases where bills are included in rent. Approximately 585,000 households, making up around 12 per cent of private renters, will be affected.

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The UK Government have advised that landlords will have to pass the discount onto their tenants. They state that landlords need to comply with maximum resale price regulations. This would stop landlords who are in a domestic electricity contract with a licensed supplier and then sell on electricity to their tenants who try to make a profit on the energy.

The National Residential Landlords Association has stated that landlords, 'should be passing on the savings to their tenant in line with [the regulator] Ofgem's requirements'.

Speaking to the BBC, Shelter's chief executive Polly Neate said: "There's no specific legal obligation for landlords to pass on this support, but they aren't allowed to overcharge tenants for the energy they've used or make a profit on it. This could be the case if they pocket the Government support and continue to charge the same rate for utilities.

"Landlords can only charge for energy used, the standing charge and VAT. So, it's worth making a note of how much energy you're using to make sure you're not paying more than you should."

This comes as the UK Government has confirmed that households in Scotland, England and Wales will receive over £60 off of their energy bills each month this winter. The £400 rebate will be issued in six monthly instalments to approximately 29 million households.

Households will have £66 discounted off of their energy bills in October and November, then £67 will be shaved off from December to March in a bid to help people cope with the rising bills as the energy crisis continues. Experts forecast that the energy price cap is set to push the average Direct Debit to around £3,600 a year in the coming months.

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