London renters in leakiest homes face £1,000 premium on energy bills

Exclusive: Sadiq Khan demands rent freeze, as new research shows tenants in most poorly-insulated homes will pay extra £947 a year

London mayor Sadiq Khan has called for an immediate private rent freeze, as new analysis shows renters in the capital’s most poorly-insulated homes face paying a premium of almost £1,000.

City Hall figures shared with The Independent shows that Londoners in the leakiest private rental homes – in energy-efficiency rating bands F and G – face a premium of £947 a year.

Half of all London’s 490,000 private renters sit below the band C energy rating standard. They face an average premium of an extra £455 a year on their bills compared to those at band C.

Mr Khan has called on Liz Truss’s government to give him the power to impose a rent freeze in London, arguing that it would put around £3,000 in the pockets of those facing rent rises and spiralling energy bills over the next two years.

Despite Ms Truss move to cap annual energy bills at £2,500, the Labour mayor said private renters are set to pay “significantly more for energy this winter because private landlords have failed to properly insulate” draughty homes.

“I am once again urging ministers to act now to tackle not only the climate crisis but the energy crisis and the spiralling cost of living crisis by launching a major home insulation drive,” he said.

The Labour mayor added: “The government must also give me the powers to stop rents rising in the capital which would save Londoners £3,000 over two years, and curb the inflationary pressure of rents on household budgets.”

Mr Khan has also called for the introduction of a “lifeline tariff” to ensure the most vulnerable individuals and families receive a base amount of free energy every day.

He also urged Londoners to check if they are eligible for his warmer homes programme which provides free heating and insulation measures.

The government support package to cap energy bills from October will cost £60bn in the first six months alone, chancellor Kwasi Kwarteng.

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 slash businesses’ bills in half will cost around £29bn.

Mr Kwarteng also outlined a new £40bn scheme for energy firms, which will see the Bank of England “offer emergency liquidity to energy firms”.

But the End Fuel Poverty Coalition – an umbrella group representing 60 charities – said the mini-Budget had “nothing” to offer in terms of more targeted support for the poorest.

Simon Francis, charity co-ordinator, said it had been “especially minimal on the support needed to keep people warm this winter”.

He warned energy bills were still set to increase by 64 per cent compared to last winter when the price cap finally rises this Saturday, 1 October.