Deadline Extension Announced for Tenancy Saver Loan Scheme
Welsh Government has announced it is extending the Tenancy Saver loan until the end of September 2021.
The scheme, which is designed to help tenants in rent arrears due to Covid pandemic, is available through seven credit unions in Wales with a low interest rate of just 1 percent.
The Tenancy Saver Loan Scheme (TSL) which was introduced to help those in rent arrears due to Covid-19, will go beyond the original deadline of March 31.
Minister for Housing and Local Government Julie James MS has announced that as the pandemic continues, and restrictions remain in place, many tenants continue to live with lower incomes than normal.
Julie James MS said: “I am also acutely aware of the potential spike in evictions that will take place when the stay on evictions and extended notice of possession periods end.
“Given this and the difficulties many people are continuing to face in paying their rent, I have agreed to extend the TSL scheme for at least six months, until 30 September.”
The Tenancy Saver Loan scheme is designed to support tenants who experienced a temporary change of income due to Covid-19 and the subsequent lockdown restrictions imposed.
This includes people on furlough who received 80% of their wages for a period of time, those who took unpaid leave from their employment to care for someone, or those who were only entitled to Statutory Sick Pay (SSP) during self-isolation which meant that they could not afford their rent.
The loan is paid directly to the landlord or agent which will remove the threat of eviction.
Julie James MS added: “The TSL scheme was not intended to target all tenants in rent arrears and the loans must be affordable.
“It was designed to provide loans for those who had arrears because they had become temporarily unable to meet their rent but who returned to being able to afford their rent but were struggling to clear their arrears. “
Discretionary Housing Payments are also available for those on benefits and provided through local authorities.
An additional £4.1m funding has been made from the Welsh Government to top up DHP funding and help local authorities to support tenants in rent arrears both this year and in 2021-2022.
For further details about the Tenancy Saver Loan Scheme visit here.