I’m working from home and can’t afford to keep the heating on.
Heating our home is a common problem for renters - not just because of rising energy costs, but also due to inadequate insulation. And it has become more of an issue as we spend more time in our homes because of coronavirus.
There are a few things you could consider: how you pay for your energy, if you can claim back tax, and how to improve insulation.
If you're already on a standard meter, it is fairly easy to switch to a cheaper supplier and there are several websites that can help with this. Note that it can be tricky to compare deals before you've lived somewhere for more than a year and so have an idea of how much energy you use.
How you pay - switching from prepayment
Overall, prepayment meters (which you top up at the shop with a card or key) are more expensive than paying for your gas and electric with a standard meter. Since 2017, there has been a price cap for prepayment meter plans which is reviewed twice a year. But when you have a standard meter with a number display and pay for your energy on a monthly or quarterly basis, you benefit from lower prices and wider options. If you have a prepayment meter, you should consider switching to a standard meter.
You can switch from a prepayment meter to a standard one without your landlord’s permission. You can also change from a standard meter to a prepaid one. You might also need to switch back to the meter plan that was in place when you moved to the property when you move out if your landlord asks you, at the risk of losing your deposit. So it’s best to keep them informed to avoid any surprises.
All energy suppliers have their own system in place for making the switch. Most of the biggest energy suppliers will switch plans free of charge, as long as you pass their credit checks - including British Gas, EDF, E.ON and SSE. Some companies charge new customers or take a deposit - so look at these policies before switching payment plans.
While most energy suppliers require a good credit/payment history before they’ll install a standard meter, there are a few circumstances in which you can switch even if you’re in debt. This includes situations where it is not safe or practical to use a prepayment meter - Citizens Advice has more.
If you’ve finished paying debt and you don’t want to be on prepayment anymore, your supplier must remove your old-style prepayment meter and give you an old-style credit meter or smart meter instead. If you’d prefer to stay on prepayment, your supplier must reset your meter so you're not paying too much.
Tax break for working from home
You may be able to claim tax relief for additional household costs if you have to work at home on a regular basis, either for all or part of the week (you cannot claim if you choose to work from home). This includes if you have to work from home because of coronavirus (COVID-19).
Additional costs include things like heating, metered water bills, home contents insurance, business calls or a new broadband connection. They do not include costs that would stay the same whether you were working at home or in an office, such as rent or council tax.
You can either claim tax relief on:
- £6 a week from 6 April 2020 (for previous tax years the rate is £4 a week) - you will not need to keep evidence of your extra costs
- the exact amount of extra costs you’ve incurred above the weekly amount - you’ll need evidence such as receipts, bills or contracts
You can either:
- Ask your employer to apply for the reimbursement of your costs going back to when you started working from home, or
- Claim it yourself online through the Government Gateway system
Further information is available here.
If you’re already on the cheapest tariff you can find, and are claiming back everything you can, find out what steps you can take to keep your home cosier. You can type in your postcode at Simple Energy Advice, a government website, answer a few questions, and get given recommendations for you and your landlord.
A home that is difficult to heat properly is also at risk of condensation and mould - we have more information here.