Don’t miss out on this opportunity to get rid of your rent arrears this winter!

A £65 million support package has been announced for vulnerable renters. Don’t miss out on this opportunity to get rid of your rent arrears this winter!

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Young woman preparing home budget, using laptop and calculator

Image source: Getty Images

Good news for renters with rent arrears! The Department for Levelling Up, Housing and Communities recently announced a £65 million support package for vulnerable renters. Don’t miss out on this opportunity to get rid of your rent arrears this winter! Here’s what you need to know.


Inflation Is Coming

Inflation is out of control, and people are running scared. But right now there’s one thing we believe Investors should avoid doing at all costs… and that’s doing nothing. That’s why we’ve put together a special report that uncovers 3 of our top UK and US share ideas to try and best hedge against inflation… and better still, we’re giving it away completely FREE today!

Click here to claim your copy now!

What is the £65 million support package for rent arrears?

During the pandemic, many households, especially vulnerable households, faced financial difficulty to the extent that some faced homelessness. Fortunately, the £310 million Homelessness Prevention Grant offered financial support to prevent eviction, provide temporary accommodation and help people find new homes.

With high energy bills, high living costs and Covid-19 uncertainty this winter, the government has pledged an extra £65 million to help vulnerable renters struggling due to the impact of the pandemic. This is in addition to the previously pledged £500 million Household Support Fund dedicated to vulnerable households struggling with the cost of living.

Minister for Rough Sleeping and Housing Eddie Hughes MP explains, “We have taken action throughout the pandemic to support the most vulnerable families, and it is vital we continue to provide support as we enter the winter months. This new funding will support families that are struggling and help to get them back on their feet as we begin to recover from the Covid-19 pandemic.”

How can you access this fund for your rent arrears?

According to the website, the £65 million support package will be given to councils in England. The councils will determine the best way to support each household on a case-by-case basis. This means you’ll need to contact your local council to access the funds.

The support package will be available throughout the winter months to support low-income earners in rent arrears. It targets households at risk of homelessness due to the impact of the pandemic, especially in the private rented sector.

Payments are more than likely to be paid directly to existing landlords, but if a household is in the process of finding a new home, payments can be made to a new landlord.  


How can you avoid accumulating rent arrears in the future?

It’s a good idea to begin by tracking all your incomings and outgoings. You’ll be able to see where you fall short and perhaps make the necessary changes through budgeting. There are also three important questions to consider when assessing your housing situation.

1. Are you living in an affordable area?

If you find that you’re struggling with rent and bills, you might be living in an expensive area. It could be valuable to research the most affordable areas in your locality – and nationally – to determine whether a move would improve your situation.

2. Are you following the rent rule of thumb or the 50/30/20 rule?

The rent rule of thumb recommends spending at most 30%-35% of your income on rent. If you’re spending more than 35% of your income on rent and it’s putting a strain on your finances, then you may need to seek support from your council or consider a move for long-term financial security.

You could try the 50/30/20 rule if you think it would work for you. It recommends spending 50% of your income on your needs (including rent, bills and food), 30% on wants (clothes and hobbies), and the remaining 20% on debt, savings and investments.

3. Are you building an emergency fund?

It’s not uncommon to encounter unexpected emergencies that can drain your savings or even affect your ability to make a living. Having an emergency fund softens the financial blow and helps you avoid payment arrears, including rent arrears.

If the cost of your rent is preventing you from building an emergency fund, then it may be necessary to adjust your household budget or consider a move. 

More on Personal Finance

Note paper with question mark on orange background
Personal Finance

Should you invest your ISA in a model portfolio?

Which model ISA portfolios offer both high performance and low fees? Hargreaves Lansdown, Interactive Investor and AJ Bell go under…

Read more »

Economic Uncertainty Ahead Sign With Stormy Background
Personal Finance

Is it time to exit emerging markets investments?

Investors may well be sitting on losses from emerging markets funds. Is it worth keeping the faith for a sustained…

Read more »

Personal Finance

Share trading? Three shares with turnaround potential

Share trading has been difficult in 2022, but which companies have turnaround potential? Jo Groves takes a closer look at…

Read more »

Man using credit card and smartphone for purchasing goods online.
Personal Finance

Revealed! Why Gen Z may be the savviest generation when it comes to credit cards

New research reveals that Gen Z may be the most astute when it comes to credit cards. But why? And…

Read more »

Environmental technology concept.
Personal Finance

The 10 best-performing sectors for ISA investors

The best-performing sectors over the past year invested in real assets such as infrastructure, but is this trend set to…

Read more »

Road sign warning of a risk ahead
Personal Finance

Recession risk ‘on the rise’: is it time for investors to worry?

A major global bank has suggested the risk of a recession in the UK is 'on the rise'. So, should…

Read more »

pensive bearded business man sitting on chair looking out of the window
Personal Finance

1 in 4 cutting back on investments amid cost of living crisis

New research shows one in four investors have cut back on their investing contributions to cope with the rising cost…

Read more »

Image of person checking their shares portfolio on mobile phone and computer
Personal Finance

The 10 most popular stocks among UK investors so far this year

As the new tax year kicks off, here's a look at some of the most popular stocks among UK investors…

Read more »