Your cookie preferences


We use cookies and similar technologies. You can use the settings below to accept all cookies (which we recommend to give you the best experience) or to enable specific categories of cookies as explained below. Find out more by reading our Cookie Policy.

Select cookie preferences

Skip to main content

Social housing tenants pay £150 for energy they haven’t used

  • One in ten renters (11%) have had to foot the bill for a previous tenant’s energy consumption, forking out an average of £102 – but for renters in social housing this figure climbs to £151

  • Seven in ten (70%) landlords provide no information to tenants about energy tariffs or the switching process

  • One in five (20%) landlords wrongly believe they can dictate whether a tenant switches energy supplier – even if the tenant pays the bills

  • Four in ten (40%) renters have never switched energy supplier, losing potential savings of up to £1.2 billion

  • With nearly 40% of households renting their home, Uswitch calls for landlords, housing associations and local authorities to provide more information to help tenants to save money on household bills.

One in ten renters in Britain (11%) have paid out an average of £102 for gas and electricity they haven’t used, according to new research from Uswitch.com, the price comparison and switching service. The figure climbs to a shocking £151 for social housing tenants, who are often among the most vulnerable and can least afford extra charges.

Renters should only have to pay for their own usage, but the research suggests that social and private landlords could do more to help their tenants. Seven in ten (70%) landlords don’t provide any information about energy tariffs and the switching process, while almost one in four (23%) don’t even tell new tenants who their current energy supplier is. This issue is all the more acute as only a third (32%) of energy customers living in rented social housing have looked for a better deal, and a startling one in five (19%) of those in private rented housing live in fuel poverty.

Worryingly, a fifth of landlords (20%) believe they have the right to specify which energy supplier a tenant should use and whether they can switch provider, even if the tenant pays the bills. This is despite Ofgem guidance stating otherwise and means tenants could be languishing on a more expensive tariff, paying more than they need to for their gas and electricity.

Nearly three quarters of tenants on a dual-fuel tariff (73%) are with one of the Big Six energy providers and four in ten UK renters (40%) say they have never switched energy supplier at all. With the average standard tariff from the Big Six costing £1,221 per year, tenants who have never switched are potentially paying up to £300 more than the cheapest deal on the market and missing out on a collective £1.2 billion in energy bill savings.

Several factors are contributing to renters paying over the odds on their energy bills: one in six renters (14%) said they didn’t know they could switch, while a fifth of tenants in a shared house (20%) reported having to absorb the cost of paying for someone who no longer lived at the property. Moreover, fewer than half (43%) of all tenants took or were given a meter reading the day they moved into their current property, making it difficult to calculate accurate bills based on when people actually moved in and out.

Tenants say their average monthly energy bills range between £61 in Sheffield – where renters were among the most aware that they could switch supplier (92%) – to £80 in Bristol, which was among the towns with lower levels of switching awareness at 84%.

Those living in the capital are amongst the least aware of their switching rights, with almost a fifth of London-based tenants (19%) unaware they are allowed to switch supplier and at risk of over-paying by up to £314 a year for their energy. In contrast, those in Liverpool were most informed about their rights, with 95% aware they were able to switch energy supplier.

Rik Smith, Uswitch.com energy expert, says: “The last thing that cash-strapped renters need is to have to shell out for gas and electricity they haven’t even used.  And it’s shameful that tenants in social housing – who can often be the most vulnerable in society – are among the worst affected by this.

“These unnecessary and avoidable costs pile on more pressure when people are trying to keep their bills as low as possible. Landlords can make a huge difference by providing some simple information which could be worth hundreds of pounds a year to a renter. As a bare minimum, reminding tenants to provide opening and closing meter readings means they will only pay for their own energy use.

“Quite simply, if your name is on the energy bill, you’re entitled to shop around for a new energy tariff. If your tenancy agreement prevents you from switching, you should still talk to your landlord or estate agent – they may request you return the home to the original supplier before you leave. If you decide not to switch, you can still ask to move to a cheaper plan with your current supplier so you’re not languishing on a poor value standard tariff.”

For advice about renters’ rights, visit the Uswitch.com tenants’ guide to switching energy supplier: https://www.uswitch.com/gas-electricity/campaigns/renters/

If you don’t know who your electricity or gas supplier is, visit: https://www.uswitch.com/gas-electricity/guides/who-is-my-energy-supplier/

For more information about switching energy providers while renting, read our guide: https://www.uswitch.com/gas-electricity/guides/tenants-guide-to-switching/

Find out how you could save over £1,000 a year with Uswitch here.

FOR MORE INFORMATION

Ailene Barr

Phone: 020 3872 5610

Email: ailene.barr@uswitch.com

Twitter: @uswitchPR

Notes to editors

Research was conducted online by Opinium between 30th August and 10th September 2018, among 2,008 UK private and social renters and 250 landlords that rent out one or more properties which they do not live in.  

  1. When asked ‘Have you ever moved into a new property and had to pay for a previous tenant’s energy usage?’ 11% of the total respondents answered ‘Yes’, 9% of social renters answered ‘Yes’. When asked ‘How much were you charged?’, the average for total respondents was £102. The average for social renters was £151. 20% of those that rent a room in a shared house said ‘Yes’.

  2. When asked ‘Do you provide information to new tenants on energy tariffs and / or the switching process (either directly, or if applicable through your lettings agent)?’ 70% of landlords answered ‘No’

  3. When asked ‘Which of the following do you think best describes who chooses an energy supplier in a rented property?’, 20% of landlords answered ‘A landlord can specify which energy supplier tenants should use and whether the tenant can switch’

  4. When asked ‘Have you ever switched energy supplier whilst living in a rented property?’ 40% of respondents answered ‘No’.

  5. 27.2 million households in the UK (source: ONS). 37% of households are renting (source: Family Resources Survey 2016/17). 37% of 27.2 million = 10,064,000. 40% of 10,064,000 = 4,025,600 households. 4,025,600 households x £300 (average big six SVT minus cheapest deal on the market as of 10/10/18) = £1,207,680,000

  6. When asked ‘Do you tell (either directly, or if applicable, through your lettings agent) new tenants who the current energy supplier is?’, 23% of landlords answered ‘No’

  7. https://www.ofgem.gov.uk/publications-and-updates/state-energy-market-2018

  8. https://www.ofgem.gov.uk/consumers/household-gas-and-electricity-guide/how-switch-energy-supplier-and- shop-better-deal/how-switch-energy-supplier-if-you-re-tenant

  9. When asked ‘Who supplies your gas and electricity?’, 22% said British Gas, 14% said E.ON, 12% said SSE, 9% said EDF, 9% said Scottish Power and 7% said Npower = 73%

  10. Average big six SVT is £1,221. Cheapest challenger brand tariff is £921. £1,221 - £921 = £300. Data correct as at 10/10/18

  11. When asked ‘Do you think you have the right to switch energy supplier / tariff as a renter?’, 5% of respondents answered ‘No’ and 9% answered ‘Don’t know’. 5% + 9% = 14%. 19% of those in London answered ‘No’ or ‘Don’t know’ and 95% of those in Liverpool answered ‘Yes’.

  12. When asked ‘Have you ever taken or been given a gas and electricity meter reading the day you moved into / out of a property?’, 43% answered ‘Yes, in my current home’

  13. See table 1 in release

  14. Average Big Six SVT for London energy region is £1,225. Cheapest tariff for London energy region is £911. £1,225 - £911 = £314. Data correct as at 8/10/18

About us

It’s all about “U”!

Thank you for indulging us over the last 20 years by using a small ‘u’ and a big ‘S’ when writing about our brand in your articles.

We are delighted to let you know that you are now off the hook - it’s big U’s all the way (and small s’s) as we undertake our biggest ever rebrand - so let your autocorrect go wild!

About Uswitch

Uswitch is the UK’s top comparison website for home services switching. Launched in September 2000, we help consumers save money on their gas, electricity, broadband, mobile, TV, and financial services products and get more of what matters to them. Last year we saved consumers over £373 million on their energy bills alone.

Uswitch is part of RVU, a new business that also owns Money.co.uk and Bankrate.

If you would no longer like to receive our press releases please email prteam@uswitch.com with 'unsubscribe'.