Rents: Arrears

(asked on 2nd February 2021) - View Source

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

To ask the Secretary of State for Housing, Communities and Local Government, what assessment his Department has made of the potential merits of making loans available to people in rent arrears as a result of the covid-19 outbreak, on similar lines to the Tenancy Saver Loan Scheme in Wales and the Tenant Hardship Loan in Scotland.


Answered by
Christopher Pincher Portrait
Christopher Pincher
This question was answered on 9th February 2021

This Government has provided an unprecedented package of financial support to protect renters whose income has been affected throughout the COVID-19 pandemic.

Notably, to help prevent people getting into financial hardship, we have increased the local housing allowance rate to the 30th percentile of local market rents in each area. The increased LHA rates will be maintained at the current levels in cash terms in 2021/22, even in areas where the 30th percentile of local rents has gone down. We have boosted the welfare system by billions of pounds, including increasing Universal Credit and Working Tax Credit by up to £1,040 for the year


In addition, the Coronavirus Job Retention Scheme has offered support for businesses to pay staff salaries, enabling people to continue to pay their rent and has been extended until April 2021.

For those who require additional support, Discretionary Housing Payments (DHP) are available. As announced at the spending round for 2020/21, there is already £180 million in DHPs for local authorities to distribute for supporting renters with housings costs in the private and social rented sectors. For 2021-22 the Government will make available £140 million in DHP funding, which takes account of the increased LHA rates.

We continue to closely monitor the ongoing effects of the pandemic on renters.

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