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AIBU?

To not understand why landlord have to pass on the energy rebate

12 replies

Ticktockwoof · 22/09/2022 11:56

I was just reading in the news that where renters bills are included in the rent, landlords must pay them the energy rebate that they get from the government.
I think I’m being dense but I don’t get it… if the landlord pays the bills and the bills are increasing, shouldn’t they keep the money that should be going towards paying energy bills? Surely they’ll just increase the rent otherwise.

I’m not a renter or a landlord, just wondering if someone can explain.

OP posts:

Am I being unreasonable?

36 votes. Final results.

POLL
You are being unreasonable
39%
You are NOT being unreasonable
61%
Precipice · 22/09/2022 12:04

The purpose of the rebate is to provide a subsidy towards the energy bills, to basically provide a buffer against the rising cost of energy, to try and reduce people from freezing or running up huge energy bills.

The subsidy is paid to the people paying the energy bills. This is done directly because it is administratively easier, but in the case of the renters who pay the landlord a sum that includes both the rent and bills, the renters are still the ones paying the energy bills. The landlord is just administering it.

womaninatightspot · 22/09/2022 12:05

I think the same as you. There were also people saying that landlords of HMOs should be giving tenants 400 each despite only getting 400 themselves. Maybe if they’ve put the rent up loads assuming electricity will be charged at the higher rate it’ll balance out?

Sirzy · 22/09/2022 12:06

Precipice · 22/09/2022 12:04

The purpose of the rebate is to provide a subsidy towards the energy bills, to basically provide a buffer against the rising cost of energy, to try and reduce people from freezing or running up huge energy bills.

The subsidy is paid to the people paying the energy bills. This is done directly because it is administratively easier, but in the case of the renters who pay the landlord a sum that includes both the rent and bills, the renters are still the ones paying the energy bills. The landlord is just administering it.

But in most cases they are paying a set amount each month which includes the bills. Unless it’s variable rent each month on the amount used then it will be the landlord absorbing the increases.

Caterina99 · 22/09/2022 12:08

It makes sense to me that the landlord either increases the rent to reflect the new energy rates and therefore passes on the £400 to the tenant

Or they don’t pass on the price rise (ie the rent has not changed) and therefore they are now out of pocket and keep the £400.

What they don’t want happening is landlords putting up the rent and also keeping the £400 for themselves

Precipice · 22/09/2022 12:09

But the landlord will probably (have) put the rent up with the rise in DD.

Landlord keeps payment - tenants pay the same as they would otherwise pay - landlord benefits from rebate.

Landlord has to hand down payment - tenants pay the same to the landlord as they would otherwise pay - tenants benefit from rebate.

The second scenario is more in keeping with the purpose of the rebate, as the benefit is passed down to the tenants. In the landlord keeps scenario, tenants whose rent is actually rent+bills lose out compared to tenants who pay their own bills.

Sunbird24 · 22/09/2022 12:15

I’m an HMO landlord. The increase in energy bills is putting their gas/electric DD up by £80 a month between 6, the £400 rebate will offset £66/7 of that. That leaves an increase of around £2 per month per tenant, so I’m obviously not putting their rents up now. Once the rebate stops I’ll probably have to, but it shouldn’t be by a lot.

LovelyLovelyWarmCoffee · 22/09/2022 12:41

They will have to increase the rent in line with the bills increase then 🤷🏻‍♀️ Fair enough

caringcarer · 22/09/2022 12:56

If legislation is brought in to make LL pay the £400 to tenants, LL will just increase rents more than they would have to absorb increased energy they will have to pay. The money is meant for increased energy expenditure yet groups calling for LL to hand £400 over to tenants are saying tenants can use it to buy food.

JustALittleHelpPlease · 22/09/2022 13:59

Legally landlords can only increase rents by 10% this probably won't cover the increase in bills.
It makes much more sense that the landlord pays and gets the rebate than passing it on and increasing the rents. Tenants can afford their rent as it stands, they may not be able to afford an increase - particularly in HMOs where the rebate would be split across several people so absolutely wouldn't cover the difference.

Dotjones · 22/09/2022 14:06

womaninatightspot · 22/09/2022 12:05

I think the same as you. There were also people saying that landlords of HMOs should be giving tenants 400 each despite only getting 400 themselves. Maybe if they’ve put the rent up loads assuming electricity will be charged at the higher rate it’ll balance out?

That's because the landlord is acting as an energy reseller. The tenants are the end customers, they're the ones who should be receiving the £400 rebate. The landlord should be paying it to each tenant too.

holidaynightmare · 22/09/2022 15:19

JustALittleHelpPlease · 22/09/2022 13:59

Legally landlords can only increase rents by 10% this probably won't cover the increase in bills.
It makes much more sense that the landlord pays and gets the rebate than passing it on and increasing the rents. Tenants can afford their rent as it stands, they may not be able to afford an increase - particularly in HMOs where the rebate would be split across several people so absolutely wouldn't cover the difference.

This is interesting
My friend was paying £750 a month rent and got a letter increasing her to £950 (letter said in line with market increases!)
To be fair she has been in her house 9 years and houses like hers are now advertised anywhere between £950-1100 and the rent has never increased all this time but she's just accepted it as if she moved anywhere else it would cost more and they are really settled x

JustALittleHelpPlease · 22/09/2022 17:40

Have a Google. The maximum increase is 10% per annum I believe (but may be 10% per contract period). It may be too late of your friend has already accepted the increase though.

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