Utilities for 2022 student year – update on caps
This update is to let you know the cap we are using for the 2022 student year and what you need to know about overpends.
We set our overspend allowance back in March/April during a period where the bills were a moving target.
The Prime Minster, The Rt Hon Elizabeth Truss MP set a new allowance for the overspend which put the brakes on the rapid rise in the OFGEM rate at a new cap of 34p a unit for Electricity and 10p a unit for gas. However, the two year fix period was later changed to a cap lasting until April 2023, which happened just before the Truss residency at Number 10 ended. This has not been changed or revised by the government led by the Rt Hon Rishi Sunak MP.
This creates some uncertainty for this student year as we expect the rates paid to exceed our contractual cap, and won’t know what this rate will be until a new government funded cap is introduced from April 2023 (or, if it will then revert to a rate set by the market, which is unlikely unless the market has stabilized).
To reiterate, the current allowance for tenancies up to 30th June 2022 is as follows:
2 bed: £120 (note that very few two beds are inclusive)
3 bed: £130
4 bed: £143
5 bed: £156
6 bed: £169
7 bed: £182
8 bed: £195
9 bed: £208
10 bed: £260
The actual government underwritten cap will be slightly higher than this so you will have overspends. However, you will also have assistance with your bills from the government, assuming you are on a residential contract with a supplier. This will in effect increase your allowance by £400 for the year ending July 2022. You will also have received, through your council tax bill, a rebate for £150 towards your utility bill. This should also be applied to your overspend allowance. This means the effective rate for this year (assuming 11 month contract) is as follows (these were derived by using the above list and multiplying the monthly rate by 11 and adding £400 as rebate applied by supplier and £150 as rebate from the council tax bill).
Your effective annual overspend allowance (assuming 11 month contract with 11 months allowance) for tenancies starting July/August 2022 and ending June 2023
2 bed: £1870 (note that very few two beds are inclusive)
3 bed: £1980
4 bed: £2123
5 bed: £2266
6 bed: £2409
7 bed: £2552
8 bed: £2695
9 bed: £2838
10 bed: £3410
Note: You should contact the local authority to get any credit on your council tax account refunded to you. Note that if tenants underspend on their allowance after accounting for the credit from the supplier and through council tax they may request this back. We recommend you do so during this period of financial crisis. The same also applies if you rent a property excluding bills but if the credit for council tax has been applied to you. This council tax credit is intended to help residents, not owners who let their property, and is labelled as help with utility bills.
If you have any questions regarding the above please let us know.