Some renters could miss out on the government’s cost-of-living payment if their rent agreement has “bills included,” a charity has warned.
Earlier this year, former Chancellor Rishi Sunak announced households would receive a £400 discount to help pay energy bills in the autumn, as the cost-of-living crisis continues to push up prices. Polly Neate, chief executive of housing and homelessness charity Shelter, warned that certain renters may miss out on the £400 if they pay their rent and energy bills as one payment.
She said: “Tenants whose energy bills are included in their rent or service charge cannot directly claim the energy discount. Instead, they will be at the mercy of their landlord passing on this much-needed support."
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Neate warned there is “no specific legal obligations” for landlords to pass on the support to tenants, but said they cannot overcharge for the energy being used or make a profit from it. She said: “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.”
A spokesperson from the National Residential Landlords Association (NRLA) pointed out there will also be cases where “bills included” rents have been set without reflecting the recent surge in costs. Most tenants’ energy bills are paid separately from their rent, so they will receive the Government’s support payments directly, according to the NRLA.
It added: “There will be instances where all-inclusive rents have been set without reflecting higher energy prices. The Government needs to ensure that its scheme recognises such cases where it is the landlord who is ultimately paying the cost of increased bills, rather than the tenant.”
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