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New legislation that requires landlords to pass-on support to tenants where the property is let out with bills included.

The Government has provided a number of different energy support mechanisms to help lessen some of the rising energy costs on consumers.

In most cases, this energy support is paid directly to the tenant, as they are responsible for paying the energy bill directly. In some cases, the energy support is paid to the landlord, for example where the property is let out with bills-included. The landlord would be the bill payer and would receive the energy support.

The Government had concerns that landlords may not pass on the benefit of the energy support to their tenants and so has introduced legislation. The Energy Bills Support Scheme and Energy Price Guarantee Pass-Through Requirement Regulations 2022 (the Regulations) came into force on 1 November 2022 and makes clear that a landlord charging rent inclusive of energy bills must pass-on the benefit of the schemes to a tenant.

The Regulations stipulate that a “just and reasonable proportion of the benefit must be passed-on in a “just and reasonable way”.

This may include reducing rent or cash transfers in cases where rents have risen to account for increased energy costs.

Landlords who do receive the benefit of energy support schemes must contact their tenants by November 30, or within 30 days of receiving the benefit and inform them about the requirements, the amount to be passed on and other key information.

For further information please read the Government Guide.

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