London Mayor Sadiq Khan has called for an immediate freeze on private rents as new analysis shows tenants in the capital’s most poorly insulated homes face paying a premium of almost £1,000.
City hall figures are shared The independent shows that Londoners in the leakiest private rented homes – in energy efficiency rating bands F and G – face a premium of £947 a year.
Half of all of London’s 490,000 private tenants sit below the C energy rating standard. They face an average premium of £455 extra a year on their bills compared to those in band C.
Khan has called on Liz Truss’s government to give him the power to introduce a rent freeze in London, arguing it would put around £3,000 in the pockets of those facing rent rises and rising energy bills during the next two years.
Despite Ms Truss moving to cap annual energy bills at £2,500, the Labor mayor said private tenants are set to pay “significantly more for energy this winter because private landlords have failed to insulate” drafty homes.
“I am once again calling on ministers to act now to tackle not only the climate crisis but also the energy crisis and the rising cost of living crisis by launching a major home insulation project,” he said.
The Labor mayor added: “The Government must also give me powers to stop rent rises in the capital, which would save Londoners £3,000 over two years and ease the inflationary pressure of rents on household budgets.”
Khan has also called for the introduction of a “lifeline tariff” to ensure the most vulnerable individuals and families receive a basic amount of free energy every day.
He also urged Londoners to check if they are eligible for his Warmer Homes scheme, which provides free heating and insulation measures.
The Government’s support package to curb energy bills from October will cost £60bn in the first six months alone, Chancellor Kwasi Kwarteng has said.
The plan to cap annual household energy bills at £2,500 over two years will cost £31bn. in the first six month period and the plan to halve corporate bills will cost around £29bn.
Sir. Kwarteng also outlined a new £40bn scheme for energy companies which will see the Bank of England “provide emergency liquidity to energy companies”.
But the End Fuel Poverty Coalition – an umbrella group representing 60 charities – said the mini budget had “nothing” to offer in the way of more targeted support for the poorest.
Simon Francis, the charity’s co-ordinator, said it had been “particularly minimal in the support needed to keep people warm this winter”.
He warned that energy bills would still rise by 64 per cent compared to last winter, when the price cap finally rises on Saturday 1 October.