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Labour pushing for tenant loans scheme to cover arrears

Labour wants to see a tenant loans scheme in England similar to one now operating in Wales.

Easington Labour MP Grahame Morris has tabled the government a written question in the House of Commons.

It asks whether housing minister Chris Pincher will consult local government and industry experts on the potential merits of a Tenant Loan Scheme in England.


In a written response Pincher made it clear such a loan scheme was considered unnecessary by government.

Pincher wrote: “We regularly engage with a range of stakeholders on different issues relating to the private rented sector, including on financial pressures. 

“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. This will remain in place throughout the winter period until at least the end of March 2021. 

“The increase will mean nearly £1 billion of additional support for private renters claiming Universal Credit or Housing Benefit in 2020/21 and benefits over one million households, including those in work. 

“Claimants will gain on average an additional £600 this year in increased housing support.

“The Coronavirus Job Retention Scheme has offered support for business to pay staff salaries, and the Chancellor’s recent announcement of the government’s Winter Economy Plan now sets out further measures to support jobs and businesses."

And Pincher adds: “Finally, for those renters who require additional support, there is an existing £180 million of government funding for Discretionary Housing Payments made available this year, an increase of £40 million from last year, which is for councils to distribute to support renters with housing costs.

“These measures enable renters to continue paying their rent and we will closely monitor the ongoing impact of the pandemic on renters.”

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  • PossessionFriendUK PossessionFriend

    .. and make the REFUSAL of a tenant to access such Loans, a Fast-Track for eviction !

    We cannot have manipulation and interference with the Possession procedure for reasons that are then removed by the facility of a loan the tenant refuses to access.

  • Andrew McCausland

    I found most Labour housing policy over the past decade to be mired in the fantasy world of the far left ,and utterly unachievable. At last, a policy that seems to be relevant and deliverable and which will support the delivery of good quality homes into the future.

    No political party can deliver the homes they claim they want to in their manifestos without the active participation of a strong and supportive PRS. The current Covid crisis and subsequent tenant eviction ban could seriously dent the PRS, delaying or destroying its ability to deliver.

    A tenant loan scheme similar to the Welsh one is the obvious answer. So come on then Chris Pincher - grasp that nettle. Delay will only make things worse in the long term.

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    • 08 October 2020 09:29 AM

    Why the hell does the current Govt. not listen?

    To be honest, as a lifetime Tory, I am seriously thinking cancelling my membership of The Conservative Party!

    Never thought I might even think that.

    I find this Labour view the ONLY sensible action provided by any politician throughout the whole coc* up of the last 8 months.


    I could never vote labour' but I'm also a Conservative party member who at this moment in time could not vote for the conservative party as they stand, I even voted for Boris to be leader, in hind sight wasn't that a big mistake .

    • 08 October 2020 09:42 AM

    In December, I truly thought there was a sense of hope for the future.

    Since the virus, Boris and his pack of idiots have destroyed that hope, and are currently working very hard to destroy the country, the economy and that hope.

    BRAVO Mr. Starmer. If there was an election tomorrow, you would most likely get my vote......

  • icon

    This actually does not help the tenant who has lost their job due to coronavirus - who would be in debt to the government instead of in debt to the landlord. Of course landlords - thinking about their rent payments - would be happy. But the normal tax-payer - many on a minimum wage - would be less happy. Even more public debt for the government to deal with, when defaults occur, when huge amounts of public debt are already being incurred due to that virus.

    • 08 October 2020 09:38 AM

    Someone will have to pay the debt!
    Normally it would be the tenant. Why does this change?

    Everyone is affected by Corona unless you are a furloughed, non-rent paying feckless, thieving, dirty crook who rips off the Govt and LLs.

    And then laugh about what they are doing to other lives.

    And why should Landlords be the ones to carry the burden? All they have done is to do everything correctly and properly.

    Matthew Payne

    What will happen is that these loans would effectively become gifts, with tenants unable to pay them back and with a government who wont have the stomach or want the publicity heading into the 2024 GE for prosecuting thousands of tenants. Effectively then these proposed schemes would simply be the government paying off all the rent arrears which I read are forecasted to be £15bn by the time this ends. I honestly dont know how much fruit is left on the magic money tree, but HMG cant afford to rectify every loss suffered during this pandemic.


    David, would it be any different to all the student loans that are handed out each year, how many of these will ever be paid off ?

    • 08 October 2020 09:51 AM

    Most likely that Uni. students are exactly the people who will, in the future be getting well paid and WILL be able pay off the debt.


    Surely any bad debt from defaulting tenant loans is more fairly shared among all tax payers than borne solely by innocent landlords?

    Given the treasury will get 20 to 60% of this loan returned as income tax by landlords and could get 100% back from tenants through paye or benefit reductions, this must be a win win all round?

    Thirdly the tenants avoid eviction and the tax payer avoids the higher cost of temporary accommodation.

    Only someone who hates landlords and private tenants would dislike the idea of tenants' crisis loans to allow them to stay in a home they can no longer afford, hopefully temporarily.

  • George Dawes

    The tories have become new labour and Corbyn's commie chaos party are even more extreme

    The bland boring hypocrite fronting the current Labour party is a figurehead designed to appeal to the electorate , behind him it's the same seething pile of politics of envy with ridiculous ideology based on fantasy not facts

    Might as well vote loony party tbh

    • 08 October 2020 09:46 AM

    Good chance the Loony Party would be better!!!
    And that is because the current mob are even Lore loony that The Loonies.....!

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    • 08 October 2020 10:50 AM

    The Tories are seeking to eradicate small LL so they are hardly going to do anything that would enable LL to survive.

    That is why Pincher comes out with the usual b######ks!

    He can't stop the Scottish and Welsh Govts doing their thing but he can certainly make sure English LL aren't assisted to survive.

    Of course he never mentions that any loan assistance to tenants would be partially returned to the Treasury by LL when they pay tax on rental income.
    It would even increase S24 taxes as these are currently reduced because of no rent being paid by many tenants.

    So effectively Govt would be missing out of about 80% of their tenant loan if the tenant fails to repay.

    Of course many tenants would repay especially if PAYE is used by Govt to recover the loan amount.

    Govt could even make a profit out of such loans if fully repaid by tenants and with LL tax receipts.

    Would save fortunes in TA as LL wouldn't need to repossess properties from feckless rent defaulting tenants.

    No domestic upheaval for tenants.
    A win all round.
    But such a policy would ensure the survival of many LL which is the last thing this Govt wants.

    They look upon this CV19 issue as a fantastic unexpected opportunity to get rid of more LL no matter the eventual effect on tenants.

    Of course Govt has ensured that LL will suffer a lot more with the eviction ban.

    Many LL will be drained of all their resources just to prevent their BTL properties from being repossessed.

    Many won't have any alternative if they can't remove a rent defaulting tenant.

    I'm amazed that seemingly there are still many newbie LL piling into the market.
    They surely cannot understand the implications of what is currently going on.

    Make no mistake the Tories will be coming after LL wealth.

    LL thinking of selling up would do well to take the CGT hit as it currently is.
    You can bet your bottom dollar that CGT taxes on LL properties WILL be increasing.

    For LL who aren't considering selling up then increased CGT is no imperative to sell.

    But the easy money of CG has been done never to return so even higher CGT should be factored into long term BTL business models.

    There is really NO easy money in BTL.
    Most successful LL have become so through hard work and commitment.

    The Tories wish to remove all that sweat equity from LL in tax.

    The reason?............................................because it is there!

    Easily pluckable like the low hanging fruit that it is.
    Govt won't be able to resist this attraction to hit LL even more as they know it won't damage them electorally at all.
    After all who else are LL going to vote for!?

    All mainstream political parties seem to detest small private LL and actively seek their destruction while at the same time failing to come up with any reasonable methods to replace what LL provide in their MILLIONS.
    Namely properties for people to live in!

  • Franklin I

    More woes for the tenant's when getting credit scored then!

    Just like having a "Pay Day Loan" search on your credit file, this will only do more damage in the long term for a tenant seeking to rent in the future.


    No reason to trash their credit ratings if they honour their debts.

    It's time that unpaid rents could trash rent dodgers' credit ratings without the hassle and expense of a ccj. But if a ccj is needed to teach them a lesson then that's what will happen.

    It's time that everyone took responsibility for themselves and their families and didn't expect the taxpayer to pick up the tab, other than for a short period of unexpected problems.

    Longer term problems need longer term solutions - like moving somewhere cheaper or to find jobs, moving in with family etc.

    There were lots of fruit picking jobs available recently with free accommodation but we had to rely on immigrant itinerant labourers whilst young fit UK residents languished on furlough or Universal Credit.


    Without the loans their credit score will be trashed, section 8 evictions and money claim online for monies owed .

    • 09 October 2020 10:57 AM

    I hope they suffer very badly with their finances. And for a very long
    They need to have some kind of punishment for their rent thieving. Especially that this incompetent Govt. is supporting them against Landlords......

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    • 08 October 2020 13:33 PM

    And do I care? I hope they rot in hell. And the sooner the better.

  • icon

    If tenants are to get their rent paid then so should Owners with a mortgage really as the virus doesnt distinguish between them doesnt it.

    I would like to see tenants getting this money for one reason that the country will see what we see. Other taxpayers should be asking why tenants are not quitting the property and going back to Mum & Dad or friends/relatives and allow working tenants to have a roof over their head. That would be the fairest solution for all


    👍🏼Seems like a fair and potentially the best Win Win solution for Tenants, LL & Govt (regardless of political party).

    And due to this fairly balanced approach based process we might - just might - also manage Senior social care in a more empathetic manner to create a better future society for community & elderly generations who mostly like to be looked after by the family/adult children/relatives at home instead of being left on the shelf facing loneliness or an incompetent social care, or sent in care homes to be looked after by strangers.

    This solution may become a catalyst to change society for the better by resetting traditional close family values, which have almost disappeared in our society.
    As observed at one of my social tenancy clients (40 & 38) who have been struggling in a 3 bed home with 4 teenagers/adult children but keep refusing to bid to rent a bigger space or let the grandma over 90+ go into a care home for the last 10 years stating that it’s against their family & cultural value to leave elders care to others & social care. It’s the family’s responsibility.
    Their next generations have learnt the same values-of self reliance & care for family elders being a priority over fighting for a ‘private’ space by conning a Landlord - social or private.
    All family adults work & pay towards the elderly person’s support at home, alongside sharing the rent and family expenses-& kids are growing up watching a caring family unit creating a society based on self reliance- a win win for all.


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