Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made with Cabinet colleagues of the number of residents failing to pay (a) rent and (b) mortgage payments as a result of increases in the cost of living in (a) the UK, (b) Rhondda Cynon Taf local authority and c) Cynon Valley constituency.

The Government is committed to supporting the most vulnerable with the rising cost of living. The Government has already taken immediate action to help households with the rising cost of living through the Energy Price Guarantee and the Energy Bills Support Scheme. This is in addition to the £37 billion of targeted support for the cost of living this financial year, which will support homeowners and tenants alike. The Government has also announced an extra £500 million of local support in England via the Household Support Fund (bringing the total amount provided to £1.5 billion since October 2021).

To help prevent renters from falling into arrears, the Government has invested £316 million this year into the Homelessness Prevention Grant, which can be used flexibly by local authorities to meet their statutory duties and help vulnerable households at risk of homelessness. In addition, for those in receipt of welfare, the Government has committed to providing £100 million for Discretionary Housing Payments this year to provide financial support to low-income households with their rent or housing costs.

Mortgage arrears levels remain historically low. Out of a total of 8.4 million residential mortgages, according to the latest UK Finance data, 74,560 residential mortgages were in arrears at the end of June, 10% fewer than in the same period in the previous year.

Around 75% of residential mortgage borrowers are on fixed-rate deals and are therefore shielded from interest rate rises in the short term. If mortgage borrowers do fall into financial difficulty, Financial Conduct Authority (FCA) guidance requires firms to provide support through tailored forbearance options. The Government has also taken a number of measures aimed at helping people to avoid repossession, including Support for Mortgage Interest loans for those in receipt of an income-related benefit, and protection in the courts through the Pre-Action Protocol, which makes it clear that repossession must always be the last resort for lenders.