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.”