Rent arrears grants as eviction ban ends in Wales

The scheme is to support tenants who have gone into rent arrears since 1 March due to the pandemic

Tenants who have failed to pay rent due to the pandemic will be able to apply for a grant as part of a £10m package announced by the Welsh government.

The tenancy hardship grant is designed to support people who have fallen behind on their payments by more than eight weeks between 1 March 2020 and 30 June 2021.

The announcement comes as the ban on evictions in Wales ends on Wednesday.

Ministers said the new scheme would prevent homelessness.

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The grant is intended to support tenants who have gone into rent arrears as a result of a loss of income due to the crisis.

This could include tenants who have been on furlough, have seen a reduction in their work, or have only been able to claim statutory sick pay while ill with Covid-19.

People on housing-related benefits will not be eligible.

The money will be administered by local authorities from mid-July but people can register their interest now.

Climate Change Minister Julie James, who is also responsible for housing, said once someone fell behind with their rent it could be "increasingly difficult" to catch up without support.

Julie James says the scheme will prevent homelessness

"We also know that if they are made homeless, the impact on them and their families is huge - so too is the cost to public services of dealing with homelessness."

Shelter Cymru chief executive Ruth Power said many renters in Wales were "seriously worried".

"It is vital that we prevent people from losing their homes. In the wake of the pandemic, Wales' housing system cannot cope with an additional wave of homelessness," she said.

She said the charity was already seeing more "no-fault" evictions.

"We urge landlords to be patient with tenants whilst the Welsh government gets the scheme up and running so that more people don't face the prospect of homelessness."

The grant will replace the tenancy saver loan which was introduced in October.

A Freedom of Information request by BBC Wales in April found only 41 applicants qualified for the loan during the first seven months of the scheme.

Any loan handed out will now be converted into a grant.

Responding to a topical question in the Senedd on Wednesday, Ms James acknowledged the loans were "not as effective as we'd like for a range for reasons".

Plaid Cymru MS Mabon ap Gwynfor said the new scheme was "to be welcomed" but that there was a "danger it will be wholly insufficient to address the real need".

The grant announcement comes as the ban preventing landlords from evicting tenants - which has been in place since December - is lifted.

Defending the decision on Tuesday, First Minister Mark Drakeford said a failure to lift the ban could have seen the Welsh government "challenged in the courts" by landlords.

However Plaid Cymru said the move was reckless and would put "countless people at risk of homelessness".

Shelter Cymru said suspending evictions had "saved lives".

Landlords will still to have to give tenants six months' notice before evicting them.