Citizens Advice has issued a warning for more than half a million people across the UK who may miss out on the government's financial support to help pay energy bills, with the cash going to their landlords instead.
The independent organisation estimated that one in eight people who rent from a private landlord may not receive the benefit of the support that is meant to provide a discount on their energy bills. As a result, up to 585,000 people could be missing out on much-needed cash.
Tenants whose landlords manage their bills are locked out of the £150 warm home discount and they may also not see the £400 energy grant promised by the government from October. No guidance has been issued on how landlords should manage the money, while no legal requirement has been put in place for them to pass it on to their tenants.
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Chancellor Rishi Sunak announced the £400 energy grant as part of a package of new measures aimed at easing the cost of living crisis last month. The £6 billion announcement of universal support replaces an initial plan for a £200 loan, with Mr Sunak scrapping the requirement to repay the money.
“With the price of energy at a record high, it’s vital that government support reaches the people it’s intended for,” said Citizens Advice chief executive Dame Clare Moriarty. “We’re worried that many tenants are falling through the cracks, putting them at risk of missing out on money to help them with soaring bills."
He added: "Renters must be able to take control of their energy payments if they want to, so they can get all the support they need. The government should also bring forward clear guidance for landlords to make sure tenants don’t miss out on the upcoming £400 energy grant.”
Citizens Advice reported that one man they had spoken to had less than £10 on his electricity sub-meter and was unable to access the Warm Home Discount because he was not named as the official billpayer. Meanwhile, another tenant who was meant to have their bills included in their rent has seen their energy supplier install a prepayment meter because the landlord failed to pay up.
Those on low income, young people and people of colour are more likely to be impacted by this issue, according to Citizens Advice.
It comes after energy bills skyrocketed from the beginning of April following the increase of the price cap on bills. Consumers are braced for the energy price cap to rise again - this time by more than £800 to £2,800 - in October.
The Office for National Statistics (ONS) said its latest research showed an increase in people curbing spending on food and reducing non-essential travel in order to help their finances. New data shows that more than half of UK households have cut back on their use of energy in response to cost-of-living concerns.
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