Council house rent debt increases by £20,000 a week in York
City of York Council wants to set up a hardship fund to help tenants who've been struggling financially during the pandemic.
Unpaid rent debt has increased by £20,000 a week for council homes in York during the pandemic.
City of York Council wants to set up a hardship fund to cut up to £500 off struggling tenants’ rent debts.
There are more than 7,000 council homes in York and the authority is set to put aside £80,000 to help its tenants pay off spiralling debts – but more money could be set aside if residents continue to struggle.
A council report says:
“Many have lost or are on severely reduced income and are unable to claim relevant benefits to make ends meet.
“The main focus of this funding is for unpaid rent and arrears and assisting in supporting repayment plans going forwards. It’s about helping people get on a sound financial footing and helping them minimise the effects of longer term debt.”
Councillor Michael Pavlovic is asking for tenants who have fallen behind to be contacted directly by the council so they do not miss out on the fund or have to fill out too many application forms to find out if they qualify for help.
He said:
“Many will be having an incredibly tough time so it’s right that the council makes efforts to help those most in need.
“With rent arrears increasing at a rate of £20,000 a week, it’s obvious already that the pandemic’s impact has been huge for many council tenants.”
“Whether or not a council tenant receives support will very much depend of the actions of council officers working with them, so it’s essential that everyone who has fallen into arrears due to a loss of work is contacted directly by the council to see if they are eligible.
“The criteria for that eligibility will be set, so the budget to fund the scheme may be insufficient and may need to increase.
“If each eligible tenant receives the maximum £500 that’s only 160 tenants out of over 7,000, so the council may need to revisit whether or not the £80,000 is sufficient.”
Housing officers, social carers, Citizens’ Advice and other organisations will be able to request help for their clients and the grants would go directly towards paying off rent debt – with further grants available in exceptional circumstances.
The council says the cost of the scheme is “balanced against the detrimental effects of long term debt for people living in its homes and the potential cost of financial instability and homelessness”.
A meeting takes place on Tuesday.