Tenants: Loans

(asked on 11th October 2021) - View Source

Question to the Department for Levelling Up, Housing & Communities:

To ask Her Majesty's Government what plans they have, if any, to establish interest free, government-guaranteed hardship loans to support housing tenants with debts incurred as a result of the COVID-19 pandemic.


Answered by
Lord Greenhalgh Portrait
Lord Greenhalgh
This question was answered on 26th October 2021

The UK Government has provided an unprecedented package of financial support which is available to tenants.

We have targeted our interventions as non-repayable forms of support, which offer a sustainable form of support for vulnerable renters, and do not encourage more debt.

As emergency measures are lifted, support continues to be in place for renters through the welfare system. Local housing allowance rates have been maintained at their increased level in cash terms in 2021/22, meaning claimants renting in the private rented sector continue to benefit from the significant increase in the local housing allowance rates applied in April 2020. For those who require additional support, Discretionary Housing Payments (DHP) are available. For 2021-22 the Government has made £140 million available in DHP funding, building on the £180m provided last year.

The Government has also introduced a new £500 million Household Support Fund which will support millions of households in England who need it most, including for example to meet daily needs such as food, clothing and utilities. Households will continue to benefit from the energy price cap and increases in the National Living Wage.

As our recovery gathers pace, the government is continuing to help people into work and increase their earning potential – the most sustainable route to financial security. We’re investing billions through our Plan for Jobs and the Lifetime Skills Guarantee.

We continue to monitor the effectiveness of other examples of support, such as those from the devolved administrations in the UK, and note that uptake for loan support has been relatively low in Scotland and Wales.

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