£400 Energy rebate – will renters receive the money?
The government’s £400 energy rebate plan is about to kick in, but will renters actually get to see any of the money? Over the last year, energy prices have reached crippling heights, in an unprecedented rise. This has left millions of households out of pocket, and for some, on the breadline. Here we look at what the government has announced and who will benefit…
When will the energy rebate start?
The £400 energy rebate will have its first payment in October 2022 and will either be knocked off your energy bill or paid into your bank account. Every energy supplier is different, but you do not have to apply for it. The rebate will be paid automatically to you or off your bill. It’s worth noting that you will not be asked for your bank details so anyone ‘claiming’ to need bank details could be fraudulent.
How much will be paid?
Households will see a discount (or payment) of £66 applied to their bills in October and November, followed by a £67 discount applied each month between December and March 2023. The discount will be administered by your supplier on a monthly basis, regardless of whether you pay monthly or quarterly. However, if you pay your energy bills by direct debit, you’ll get the discount either as a reduction to the direct debit or a refund to your bank account in the same month. The good news is that this is a payment you can keep – you will not have to pay anything back.
Will renters or landlords get the rebate?
Essentially the rebate is given to whoever pays the energy bill. So, if your rental has bills included, there’s no specific legal obligation for landlords to pass on this support. However, they aren’t allowed to overcharge tenants for the energy they’ve used or make a profit from 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. And it’s worth making a note of how much energy you’re using so you’re not paying more than you should.