New UK Law Guarantees Tenants £400 Energy Rebate Without Needing Landlord’s Approval

The UK Government is stepping up to protect tenants amid rising energy costs. A new law will require landlords to pass the £400 energy rebate directly to tenants who pay rent with all-inclusive utility bills. This change is set to benefit nearly 585,000 renters across the country.

Why Was the New Law Introduced?

Initially, the government suggested that landlords were expected to transfer the rebate voluntarily. However, many tenants raised concerns about landlords keeping the rebate for themselves. To address this issue, the government has decided to make it legally mandatory for landlords to pass the rebate to tenants.

Gillian Cooper, head of energy policy at Citizens Advice, welcomed the decision. She stressed the importance of ensuring tenants receive financial support, especially as winter approaches and energy costs rise.

How the £400 Energy Rebate Works?

The £400 energy rebate is part of the Energy Bills Support Scheme (EBSS), designed to ease the burden of high energy prices. The rebate will be distributed in six monthly installments, starting from October. The breakdown is as follows:

• October and November: £66 per month.
• December to March: £67 per month.

The method of receiving the rebate depends on how customers pay their energy bills:

• Direct Debit Customers: Funds will be refunded to their bank account.
• Other Payment Methods: Amount will be credited to their energy account.
• Prepay Meter Users: Redeemable vouchers will be issued.

Under the new law, landlords managing energy bills for tenants must transfer the rebate directly to them.

Support for Other Households

The updated Energy Bills Support Scheme ensures that even those in less conventional housing arrangements receive support. This includes:

• Tenants with rent-inclusive utility bills.
• Residents in park homes or using district heating systems.
• Households using alternative fuels, like heating oil, who will get a £100 payment.

Previously, some of these groups were excluded or faced uncertainty about their eligibility.

Mixed Reactions to the New Law

While the decision has been praised by tenant advocacy groups like Citizens Advice, some landlords are unhappy with the move. Chris Norris, Policy Director of the National Residential Landlords Association, called the legislation “premature” and argued that it unfairly portrays landlords in a negative light.

He added that broader issues, such as the frozen housing benefit rates, need to be addressed to provide long-term solutions for tenants facing financial difficulties.

Additional Support for Businesses

Alongside the support for households, the government has introduced measures to help businesses cope with rising energy costs. A new initiative, estimated to cost taxpayers £25 billion, aims to reduce energy expenses for businesses, charities, schools, and hospitals by up to 50%.

Key features of the scheme include:

• A supported wholesale price capped at £211 per megawatt-hour (MWh) for electricity and £75 per MWh for gas.
• Discounts for firms on variable-rate contracts, capped at £405 per MWh for electricity and £115 per MWh for gas.

The scheme will run from October 2022 to March 2023, with discounts automatically reflected in bills. Businesses relying on alternative fuels like heating oil will also receive equivalent support, with details to be announced soon.

What This Means for Tenants?

The new law ensures that tenants on all-inclusive rent agreements receive the financial relief they are entitled to. This is especially important as energy costs continue to rise, putting pressure on household budgets.

By mandating landlords to pass on the rebate, the government aims to prevent disputes and ensure fairness. For tenants, this means reduced energy costs during the winter months, easing the financial burden.

Conclusion

The UK Government’s decision to introduce this legislation is a significant step toward protecting tenants and ensuring they benefit from the energy support measures. By making the £400 rebate mandatory for landlords to pass on, the government is addressing a key gap in its earlier policies.

As the energy crisis continues to impact households and businesses, these measures provide much-needed relief to those most affected. Tenants are encouraged to check their eligibility and ensure they receive their share of the rebate.

For further information about the Energy Bills Support Scheme, visit the official government website or consult your landlord about the rebate transfer process.

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